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Technology Stocks : America On-Line: will it survive ...?
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To: Art Stone who wrote (1301)1/30/1997 5:46:00 AM
From: Curtis Philips   of 13594
 
<<AOL also slipped in at the last minute the "option" to take a Free Month of service
instead of cash - Similar to going into a restaurant, getting spoiled meat, and the
manager asking if you would like more spoiled meat to make up for it.AOL also slipped in at the last minute the "option" to take a Free Month of service
instead of cash - Similar to going into a restaurant, getting spoiled meat, and the
manager asking if you would like more spoiled meat to make up for it.>>

Yes, but the free month of "spoiled meat" is 8,000,000 x $20 or $160 million LESS than they would otherwise pull in this quarter. That's nearly half the total cost of this big-deal infrastructure they're building. Plus this is only to settle Dec. and Jan. Case says system won't be up to snuff until end of Spring. That's 4 more months of liability that attorneys generals may make them compensate subscribers for. Plus a frozen subscriber base. Only good news is the money they'll save on commercials and frisbees.
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