America On-Line: will it survive ...? Message Board

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

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To: Joel Sternberg who wrote (2745)	4/7/1997 1:06:00 PM
From: Joel Sternberg	of 13594

A bear's take on AOL potential acquisition of CSRV... As much as I hate to admit it, I think a takeover would be a bold stroke for AOL. After all, AOL is trading at something like $600 per subscriber (how else can you value this money losing beast?), while CSRV is trading at a more sedate $350 per sub, and that's not even counting the value of their non-obsolete network. So, if I were this stupid market, I would reward the takeover. On the other hand, the desire to acquire CSRV can also be seen as a sign of weakness. I have already said that the day AOL shows declining membership, look out below. We all know that AOL is on the precipice in that respect. So, what do they do now? Buy new members. That should keep the Ponzi scheme going somewhat longer. Kudos, Stevie. Don't forget to cash out those options before the sh-- hits the fan.

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