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: tom pavlish who wrote (423)	10/29/1996 9:52:00 AM
From: Zoltan!	of 13594

You're right, some dopes were duped by the hypemeisters. From Reuters: "In addition, AOL said it will immediately begin expensing all marketing and subscriber acquistion costs as they are incurred, rather than deferring the costs over time as it did previously." "The company said it will take a charge as of September 30, 1996 of about $385 million, representing the balance of deferred subscriber acquisition costs as of that date." So the jig is up, at last! Many AOL realists on this thread said their books were cooked to look good, what's amazing is that AOL "management" has so much as admitted it. Too bad the truth had to be forced by events. No wonder their PR head has resigned - absolutely no credibility left! Gone are the phony AOL profits. However, this one time hit will allow them to show lower losses in the future than they would have under the old scheme. But, will any sentient person ever believe AOL bulls/analysts or their slick "management" again? What's in store for AOL? Losses for as far as the eye can see. Regards

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