I'm Against the INSP/ GNET Merger Message Board

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Technology Stocks : I'm Against the INSP/ GNET Merger

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To: levy who wrote (1)	7/29/2000 4:48:11 AM
From: Puck	Read Replies (2) of 16

Infospace's CEO quipped in a RedHerring article that the timing of their purchase of GNET was propitious: "[Go2Net's] got some relationships that are very interesting, with Vulcan and Charter and RCN," says Arun Sarin, CEO of Infospace. "And we really wanted to buy the company before they had 80 percent of the market." redherring.com I agree completely. How could GNET sell out now before the initiation of their broadband services this winter and next year. This is will be a very high profile activity and would have forced those elements of the investment community who have remained in ignorance of GNET's achievements to date to recognize them and their importance within Paul Allen's empire. I believe this would have propelled GNET's stock valuation to a much higher level than it is currently. I see absolutely no reason for GNET to sell itself now when this new development is imminent. They could continue their partnerships with INSP and decide to engage in a merger late next year. I see absolutely no imperative to hurry. GNET management certainly afford to wait for their own stock to appreciate from near and medium term business developments and seek a merger with INSP later. The business fundamentals in favor of the merger wouldn't change much, GNET's stock valuation would probably be quite a bit higher, and INSP's valuation, with its interminable losses, would probably be much lower reflecting its economic value rather than leap-of-faith pie-in-the-sky valuations that stock of any company related to mobile commerce currently is afforded. A year and half form now, I'll wager that GNET's market cap. would probably be much more comparable to INSP's and would be able to merger with INSP on equal terms much fairer to GNET's shareholders.

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