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

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To: Keith O'Neill who wrote (5023)10/10/1997 1:24:00 PM
From: Tim Kenney   of 13594
 
Excerpt from DJN..

"Sources said a sale of MSN does not make sense for a number of reasons.

"To start, Jeff Matthews, portfolio manager at RAM Partners, asked 'who would buy it?' since a sale of the service would essentially be an admission that it is not successful.

"The competition that the Internet itself presents to the online services would present an even bigger deterrent to potential buyers,
Matthews addded.

" 'Everything you need is already on the Internet,' he said, predicting that 'America Online and MSN will be phased out ultimately.

"Matthews noted that while America Online appears successful because it is the leading on-line service, the company's subscriber growth has been 'nowhere near what people were expecting.'

" 'The internet came along and changed everything,' he said. Proprietary services have been overshadowed and will continue to be.'"
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