Microsoft exits Comcast

21 January 2009

Software giant Microsoft Corp has exited Comcast going by its Securities and Exchange Commission filing after market close on Friday. The company sold more than 150 million shares of the cable operator's stock over the past 12 months.

In a 13G filing Microsoft disclosed that it did not own any shares of Comcast. According to its filing made Jan 15, 2008, the software giant said it held 150 million shares of Comcast stock, around 7.3 per cent of the cable operator's outstanding shares.

Comcast stock has been hammered along with the rest of the market over the past year, but has done comparatively better than the rest. Its shares were down about 7 per cent in 2008, while that of its rivals were down a collective 22 per cent in 2008.

Microsoft had owned a little more than 150.9 million, or 7.26 per cent, of Comcast's Class A common shares, according to an SEC filing it made at the end of 2007. The company also owned 21.6 million shares of Comcast's Special Class A shares, which carry no voting rights outside of special circumstances.

Microsoft came by both its Class A shares and Special Class A shares in 2002 when Comcast purchased AT&T Broadband from AT&T. Microsoft had an interest in AT&T at the time, which led to its acquisition of the Comcast shares.

Because Microsoft did not own more than 5 per cent of these Special Class A shares, it was not required to report its holdings. However, because it had held its position in the Class A shares for a number of years, it is assumed that it had done the same with the Special Class A shares.