>>desktop was the next AOL killer. Now that AOL has prominent
>>channels lined up on MSFT desktop, will be developing content
>>for the desktop, it is no big deal. Go figure.
I never said that. If you want a real `go figure':
Sale of ANS "valued at $425 million" is hailed for recognizing value of ANS and getting AOL out the network business which is now said was a drag on service performance and distraction from core business.
Until announcement, AOL and Street pegged ANS value at $1b; and ANS was widely viewed as important to improving operating margins. No one suggested it would be better to sell for less than half its `value' and replace its services by outsourcing.
Hambrecht & Quist
04/30/97
Given AOL's 8 million subscribers and the fact that ANS produced $7.5 million in incremental revenue from non-AOL accounts, ANS could reasonably be valued at about $1 billion applying a 50% discount to UUnet
Friedman, Billings, Ramsey.
06/36/97
Maybe AOL's best kept secret... Bottom line, ANS is profitable now and expects to each revenues of $1 billion in a "few years". However, AOL views ANS as a highly leveragable strategic asset not to be monetized, i.e., do not look for an IPO here.
08/08/97
importantly, in FQ4 ANS handled 86% of AOL's telecommunications needs; using its wholly owned subsidiary, ANS rather than MFS or Sprint, has significant cost advantages.
Robertson, Stephens
08/08/97
Average costs per hour decreased a bit in the quarter due to a higher percentage of traffic going through AOLNet
Alex. Brown
10/30/96
continued buildout of AOLNet (ANS) should push communications costs even lower |
