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

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To: Bill Holtzman who wrote (4698)9/7/1997 8:42:00 PM
From: Todd Daniels   of 13594
 
Let's see. For 2.6m subs AOL pays $200m plus whatever its business services unit is worth, plus `other consideration'. That's less than $130 per sub. If that's the value AOL places on one, why should AOL's market cap be more than $900 per sub? Sure a premium is warranted. But seven times????

And, BTW, it appears to say that AOL has been spending MORE than $130
in marketing for each net new sub.
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