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Technology Stocks : Gemstar Intl (GMST)

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To: Allegoria who wrote (3493)7/30/2000 1:47:11 AM
From: dwayanu   of 6516
 
Eric:

Before.., GMST has 201.3 million shares outstanding. Now, with the TV Guide merger, GMST will have approximately 400 million shares outstanding. ... therefore dilute the equity of current GMST holdings by approximately 50%.

??? Only if you figure that TV Guide is worthless. In theory, Gemstar issued about $15 billion in new stock to purchase a capital asset worth about $15 billion, so there's no dilution.

- Dway
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