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Technology Stocks : Gemstar Intl (GMST)
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To: Mike Buckley who wrote (3329)7/12/2000 7:59:51 PM
From: Guy  Read Replies (1) of 6516
 
A tornado measures product adoption of all competitors. Unless there is a really compelling argument that TV Guide's products or Gemstar's products will be adopted at a faster rate due specifically to the synergies of the combined entities than if the companies had remained separate, there's no reason to think that a cause-and-effect relationship can be confirmed between the merged entity and the tornado.

Mike,

One quality that Tvguide really brings to the plate, is recognition, and presence. Everybody has heard of TvGuide, and that recognition alone may give users and adopters of the technology a sense of comfort. I know that a few years ago Tvguide magazine had the largest (or maybe 2nd after Readers Digest) subscriber base in America. I'm not sure if it is still as high due to the Internet, but the fact remains it is a well known name. Gemstar on the other hand, is virtually unknown by name to the general public, and thus might have a harder time getting this to and past the early adopters. I never heard of the company until I started following the G&K thread.

Now the next question might be so what will they do with this name recognition. Well it is my hope that this will hope push the adoption rate a little faster. Through the magazine and web site, Tvguide can advertise and educate the public on EPG's and the benefits they will bring.

Do you agree that this powerful recognition may be a synergy, that helps to get this tornado twirling?

Guy
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