Excite Travel Alert & How Much is a "Channel" Worth?
The Deal with Preview Travel sets another benchmark for future cost basis of what a Digital Channel value will be Worth to investors.
If you breakdown the minimum $15,000,000 in the 5 year deal. You come up with 3,000,000 in revenue per year, or $250,000 per month, or about $8,219 per day, or about $342.46 per hour, or about $5.70 per minute.
Or put another way about $1.00 a share in revenue over the 5 year period.
Add this Preview deal the June 12th Deal with Intuit -- the June 30th Deal with Ticketmaster -- the July 7th Deal with Amazon.com.....All these companies contracting for multi-year/multi-million dollar deals to brodcast their goods or serivces across the EXCITE NETWORK.
Then to this Add the Certified Merchant Program, Excites' new shopping channel announced September 4th. Featuring the likes of Disney & Wal-Mart for starters....
What the Hell is going on here?
It's simple! It's a FUNNEL!! EXCITE IS A FUNNEL!!
Consider this....
If you use AOL, what's your default browser? Webcrawler or Excite.
AOL owns 20% of Excite...
Who's buying Compuserve, enough said..
If you use Web/TV, what's your default browser? Excite
If you use an ISP, who's #2 on the Internet? Excite
If you have a product or service you want to distribute over the internet, what primary element do you need to be successful? Get people like you and me to see it. Right?
Now which Digital Network provides access to users of the Internet-AOL-Web/TV and soon to be Compuserve by default? Excite.
So what is Excite...A FUNNEL! Bringing people like you and me a common place, where the sellers of goods and services can make their presenations.....and hopefully sell us something.
So what are we gonna charge these boys to use our FUNNEL! $3,000,000 a year, or $250,000 per month, or about $8,219 per day, or about $342.46 per hour, or about $5.70 per minute.
Say just 15 companies made similar deals as Preview just did....now I'm dreaming....bear with me..
15 X $3,000,000 = $45,000,000 a year. / 15mm shares / $3.00 per share revenues. At a multiple of 35 times earnings....that would put Excite Shares at about $105.00..
Somebody wake me up! |
