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Technology Stocks : America On-Line (AOL)
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To: KailuaBoy who wrote (32400)10/7/1999 6:27:00 PM
From: JayPC  Read Replies (2) of 41369
 
Chin,

IMO, stock split is not the uppermost thing with AOL. They need money for the Excite deal and the stocks will provide them the capital.

One more time I ask the question. Why does everyone insist that a stock split gives AOL more money to do a deal with anyone? A stock split gives AOL twice as much stock that is worth half as much per share.

You are right, it seems to me that people are confusing the fact that AOL has asked for an increase in outstanding shares with the non-fact that they are announcing a stock split.

If AOL was to purchase Excite they would do so with shares. As Firenza said, this one possible reason why AOL is asking for the increase. A split does nothing for aquisitions. Having a enough outstanding shares authorized does.

Regards Jay
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