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Technology Stocks : America On-Line: will it survive ...?
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To: chenys who wrote (3379)6/10/1997 5:24:00 PM
From: Todd Daniels   of 13594
 
>However, do u see the CUC deal as significant?

1) That AOL once again took up front cash against long term
comissions in return for cut rate deal seems to say that they
need the cash and/or have less confidence in the future than
do buyers of the stock.

2) CUC sells such wide range of stuff from `lowest price' consumer electronics to travel to insurance that the deal limits AOL ability
to attract competing vendors -- from whom AOL could get larger cut than from CUC the middleman.

3) CUC even sells books (www.books.com). Don;t know how that will
be squared with Barnes and Noble's exclusive with AOL.

3) BTW, CUC's Entertainment division's 1,200 person sales force
has contract with MSN to sell advertising on Sidewalk, which
competes against AOL's Digital Cities.
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