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Technology Stocks : AUTOHOME, Inc

ATHM 23.40

-1.0%

1:24 PM EST

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To: Islander99 who wrote (17304)	11/25/1999 7:58:00 AM
From: edamo	Read Replies (3) of 29970

islander....re: benefits of aol/athm deal forget about "eyeballs", as they are not constant generators of revenues. consider the following: 1)aol has 21m subscribers 2)majority of aol subscribers have cable tv 3)many cable tv subscribers have access to athm service 4)aol subscribers like their "community" and prefer over athm service 5)if aol can be delivered over athm then: how many aol "subscribers" will rush to activate the athm broadband delivery of their existing cable tv service? if only 10%, that would instantly triple athm subscriber base, not with "eyeballs" but with monthly revenue generated "subscribers". perhaps the aol subscriber would give less subscription revenue to athm then a true athm subscriber, but there exists strength in numbers, makes business sense to grow with strategic alliances. summary: aol has subscribers, athm has broadband. athm wants more subscribers, aol wants broadband......not a bad trade off....everyone benefits...and regulatory problems vanish

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