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Technology Stocks : AUTOHOME, Inc

ATHM 23.76

+0.1%

3:26 PM EST

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To: ahhaha who wrote (23607)	7/18/2000 3:29:37 PM
From: G_Barr	Read Replies (1) of 29970

The question isn't so much of one of who owns what and whether some paper shuffle is fair. I thought the question was whether this deal added value. Before the deal ATHM had very limited ownership interest in access businesses outside the US and after the deal will have a greater ownership interest in a much larger access business purchased primarily with content assets. This would not have been my preferred means of foreign expansion however I can't see how ATHM isn't in a better psoition after the deal than before. If Att calls the shots then what is ATHM? It isn't a company. It's an operating arm which makes few independent decisions. Therefore, it isn't a company and it has never defined itself. A strong CEO could call the shots regardless of what Att or any of the cable partners demanded. I was simply stating a fact here. ATT with its control of the board (or at least the control they will have whent he reorgainization closes) has the power to stop any major straticgic move or acquisition. Whether or not a powerful CEO could overcome this is another question but as a matter of law any major decison must be approved by ATT. On the assumption that such a non-competitive provision has been put in place, how does that protect the company from having technologically enabled an entity and then being forced to sell its interest in the entity by others who are actually in control? How and why would ATHM be forced to sell its interest to who would it be forced to sell? Do you mean ATT, for that is the only entity that could force ATHM to sell but for what purpose I cannot imagine. ATT does has fiduciary obligation to ATHM and hence could not force such a sale to benefit itself at the expense of ATHM.

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