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Technology Stocks : America On-Line: will it survive ...?
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To: Richard Makowiec who wrote (338)10/13/1996 10:55:00 PM
From: Kashish King   of 13594
 
AOL is dead, that much is clear. What remains is the question of how much an internet service provider is willing to pay for their customer base. Assuming six million regular paying customers, is Microsoft or somebody else is willing to pay $500 per head? I seriously doubt that and that is what it would take to buyout the shareholders at $27 per share. There is something else to consider, Microsoft or anybody else can have an internet service and internet software which can be used through any service provider with a different pay structure to reflect the fact that ISPs and internet services are really two way different concepts -- this seems to be a point of confusion here.

If anyone is wondering how free or way cheap internet access can work it's simple: you provide internet access; you do not maintain a site with a staff of content developers, et cetera. Soon this will be the norm: service providers provide service; content providers provide content. AOL has no place in current or future models.
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