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Technology Stocks : AUTOHOME, Inc

ATHM 23.76

-0.2%

10:33 AM EST

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To: Jing Qian who wrote (13898)	8/9/1999 10:45:00 PM
From: ahhaha	Read Replies (1) of 29970

Att can't buy ATHM for the same reason they can't buy Road Runner. Then there is the fact that they don't want to own ATHM. They only want a working interest. Att isn't a media company and ATHM is the quintessence of a media company. Att is a communications company which has been put in a position by the FCC and by the '96 Act where they had to buy TCI in order to gain a new form of access to the local telephony market. Att is fighting for survival and they see the local market as the only big scale opportunity that fits their expertise. The FCC went along with the TCI purchase only because it had the power to break the monopolistic control the RBOCs had over the local copper telephony market. With the advent of cable telephony the RBOCs can't keep their monopolies. Your equity is not likely to be diluted by a merger. It doesn't matter if you receive shares. You can always sell them. Besides, there do exist merger scenarios which include companies who would make ATHM go. Jermo doesn't want to preside over a utility company. He wants the media company concept too. It's the only hope for ATHM to survive the 2002 boundary.

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