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Technology Stocks : America On-Line: will it survive ...?
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To: James Young who wrote (2237)3/7/1997 7:33:00 AM
From: jack rand   of 13594
 
>Has anyone heard of any rumors in regard to a deal between PSI net
>and AOL?

What kind of deal would that be for?

Last May PSI bailed from consumer access. Now sells direct only to business and wholesales to ISPs such as Mindspring (to whom PSI sold
its Pipeline subs). AOLnet already has more POPs than does PSI -- though I guess it's possible AOL could seek to short term lease capacity from PSI.

***** If so it would indicate that AOL's overload problems are more
intense and persistent than assumed.

But anything else, such as a merger, seems unlikely.

One look at AOL and PSI's balanced sheet tells you that AOL couldn't handle it, even with legedemain of pooling of interest accounting.

PSI's been picked over by lots of potential acquirerors, like
Teleport, which instead bought CERFnet.
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