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Technology Stocks : AUTOHOME, Inc

ATHM 23.43

-2.1%

Nov 26 3:59 PM EST

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To: ahhaha who wrote (23568)	7/18/2000 12:20:19 AM
From: FR1	Read Replies (1) of 29970

Why do you think this is so good? Because it is better than what we had. Chello is the #2 cable provider in Europe. Unless ATHM made a deal with someone, how could ATHM expand into Europe? What were we doing in Europe that was so great? Armstrong and Malone hammered this one out with a army of lawyers and accountants. You would think that the best thing would have been to have ATHM buy Chello. There obviously was some reason they decided that was not a good idea. Perhaps they felt there was less legal/political hassle going this way. As it stands right now Malone, who is a tracking stock of T, owns Chello and T owns ATHM. You can argue with all that, since there is suppose to be separation between T and Malone. Also T just has majority voting rights in ATHM (but soon to be 74%). They must have felt that a new corporation gives enough distance that the EU will not force them to divest or block the deal. **************** The hawk may return. It sounds like Malone will have more controlling interest in the new business than ATHM. Maybe he will become the tail that wags the dog. It is also true that there might be operational problems eventually because you are going back to being a partnership instead of being a corporation. Time will tell. Having said all that, if the EU would not let ATHM buy Chello, then what other deal could you do? I bet that Armstrong and Malone knew exactly what would and would not be acceptable to the EU.

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