America On-Line: will it survive ...? Message Board

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Technology Stocks : America On-Line: will it survive ...?

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To: Harry Larson who wrote (1917)	2/26/1997 1:55:00 AM
From: Zoltan!	of 13594

Tomorrow's WSJ paints it as a desperation move by both companies. AOL's new business model is not working as planned - far more expensive, as negative free cash flow about doubled to negative $193 million at the end of December quarter. Desperate for cash. Calls it an all or nothing gamble for little-known Tel-Save. Pittman, head of AOL Nutworks, even has the hubris to invite comparison with ABC, NBC or CBS. "If you look at ABC, NBC and CBS, they're not announcing $100 million deals." - Right. And Warren Buffet is clamoring to buy AOL stock. - Anyway, how many will be so undiscerning that they would assign their long distance to a nonentity like Tel-Save especially when billing will be handled by old unreliable AOL? Sounds like another floperoo. - Larger question: Is AOL uncreditworthy? Regards

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