AT&T Co and Memorex Telex International NV duly announced their agreement to combine their interests in the IBM 3270-compatible display terminal and controller market – but Reuter’s pre-announcement speculation rather missed the point, which is that AT&T is getting out of the 3270 business, swapping its interests for an undisclosed small stake in Memorex Telex (CI No 1,403). AT&T will continue to market its 6500 Multifunction Communication System line only as part of larger systems related to its core businesses. AT&T will continue to make its terminals for Memorex Telex for at least two years and provide the company with access to AT&T Bell Laboratories-developed technology and software. Memorex Telex will assume responsibility worldwide for sales and support of the 6500 line, receiving royalties from Memorex Telex for the next five years on worldwide sales of all equipment designed for the 3270 market, and the sale of personal computers. The new Memorex Telex operation will remain in Naperville, Illinois with other new Memorex employees being integrated into the company’s sales and marketing operations throughout the US.
