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Technology Stocks : RealNetworks (NASDAQ:RNWK)

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To: Tom Pulley who wrote (4082)8/18/1999 11:46:00 PM
From: soup  Read Replies (2) of 5843
 
>Apple today announced details of its strategic agreement with Akamai
Technologies, noting that it has selected Akamai as its exclusive network provider
for QuickTime TV (QTV) and that in June, it invested $12.5 million in Akamai for
approximately five percent of the shares at the time. Akamai today also
announced that Cisco has made an investment in the company.

biz.yahoo.com

Our "Who is Akamai?" feature has an overview of the company's history and
growth as well as a rundown of the products/services it offers to its customers
(including Apple).

macnn.com

One reader astutetly notes that Apple's investment has apparently "more than
quadrupled" since Cisco paid $49 million today for a 4 percent stake in the
company. (Apple paid about a quarter of that for a slightly larger stake.)

Another reader, however, writes:

"Though I have no intimate knowledge of the facts, a more realistic look at the
situation is that Apple valued the *exclusive license for QT TV* to them at about
$38 million, that being the approximate difference between the $12 million paid,
and Cisco's stake value."<

macnn.com

----------------------------

This *exclusive* part caught me. One of the points that RNWK boosters make is
that AAPL's focus on QT is inevitably diluted by other priorities.

Also, if AAPL is giving QT away, how are they going to make money off it (and fund/justify
continued development)?

The Akamai investment appears to address both issues. Akamai is going to make
money marketing/providing QT streaming services and AAPL is going to profit from
its stake in Akamai. (IPO anyone?)

AAPL generally has done well with its strategic investments; AOL, ARMHY and most recently Samsung.

quote.yahoo.com
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