Gorilla and King Portfolio Candidates Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: david barr who wrote (15829)	1/21/2000 7:36:00 PM
From: pkapsiotis	Read Replies (2) of 54805

GMST and e-books - a possible strategy The sound and feel of turning a page makes reading a book part of the journey into the story. Hi david and thread, Time to get out of lurking mode after 3 months. I hope this adds value as I really feel obliged to you for this wonderful educational experience. David, I would disagree with the idea that the purchase of the e-books companies is not a good thing for Gemstar. One of the reasons that is keeping some of the people on this thread from investing in GMST (along with the debate concerning whether GMST is or isn't a Gorilla) is the fact that the current business model is based on the TV. As we probably know from previous posts and the George Gilder thread, Gilder has declared many times the death of both the TV and telephony. In fact, I just finished reading one of his reports called "Beyond the TV Temptation - May 1997" which basically characterizes the TV industry as a "big fat dog demanding more and more food to stay alive". I won't go that far and characterize a company that is planning to operate in this industry a fat dog. I have read the Stephens report on Gemstar and it makes sense - after all maybe Mr. Gilder is wrong! (Well short off - I like his ideas). What I am trying to get to is this: if we assume that Mr. Gilder is wrong then the current business plan of GMST has a flaw. But remember... GMST's strategy is not about TVs or e-books or whatever technology they will acquire in the future. Is about identifying those trends and technologies out in the market place - securing patent protection, licensing the technology and then defending and enforcing the patents. Given that the TV - EPG - IPG - TV portal portfolio can be viewed as a cash cow that will provide the necessary funds for introducing new products such as the e-books (star). There are new technologies in the e-books area on the hardware side that will allow us to read on a paper feel type device (perhaps GMST will acquire the know how and outsource the manufacturing - I do not remember the name of the company but there was an article on the WSJ like 3 weeks ago - it is was developed in MIT I think and XEROX was also initially involved) As Geoff has pointed out in Crossing the Chasm one of the reasons why the e-books haven't crossed the chasm yet is the fact that it still feels like you are reading out of a screen leading to acceptance in only niche markets that experience pain with the paper model (e.g. technical manuals). If GMST can succeed in making it easier for the consumer (part of the strategy) then we have a winner. Without being an expert in the specifics of the IPG technology (NY Stew what do you think?) I would guess that any search and advertising capabilities that GMST will develop in the TV product will be easily transferred to the e-books product. My point is that if the TV business plan works out for GMST, great. Mr. Gilder was wrong and we can enjoy our returns. If it does not work out though then the diversification to the e-books area is a great alternative for us as it is "securing"- more like providing hedging on our investment for the future. In either case the strong installed base of TVs around the world will provide the funds for executing the e-books plan. After all with 500 satellite channels someone is going to need an IPG it at least for the next 5 years. Thanks for all Panos P.S. GMST is my third largest position along with QCOM and GBLX (I know... I know... I am getting away from the Gorilla model. Well I told you, I like Gilder)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next