SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : America On-Line: will it survive ...?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: jack rand who wrote (2635)4/1/1997 10:03:00 PM
From: Art Stone   of 13594
 
Much of AOL's move today on rumour started by a newsletter that AOL would "make a bid for Compuserve".

Seems far-fetched. AOL's balance sheet and cashflow certainly can't support debt. Stock?

Certainly. AOL always buys things with its stock. @$45/share, AOL would only need to trade about 25 million shares In return, AOL would get around $250 million in working capital, and an overbuilt, underutilized network.

Systems as incompatible as u can get. AOL is Stratus with home grown software. CIS 250 WIN NT servers with code rewrittem from ground up 2 years ago. Networks have significant overlap.

Not as incompatible as you might think. AOL has been quietly migrating their systems to Tandem's (http://www.tandem.com) new systems, which are using the Windows NT kernel, and a Posix "personality". The advantage of Tandem's architecture is that ServerNet should be highly scalable, whereas Stratus had exhausted its ability to run any faster.

Not to mention why should AOL go up on such news? It already was awarded premium for CIS abandoning the mass market.

Because it would signal that the contest is over. AOL has won the race, and now will be the single player from the United States in Europe and Japan.

It all makes sense to me. And is intensely depressing....
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News