Blodget Book On 'Web Revolution' Is A Work In Progress
By PETER LOFTUS
Of DOW JONES NEWSWIRES
NEW YORK -- The Internet bubble was still swollen in October 1999, when Henry Blodget's influence as a Web stock bull was near its peak.
It was then that the Merrill Lynch analyst cashed in on his clout by signing a book deal with publisher Random House. Blodget planned to write about "the forces underlying the Internet revolution," Random House said at the time.
That Internet revolution has since taken some unforeseen turns, and so has Blodget's book. It was originally due on the shelves in May, but Blodget says he's still working on it. The book, which has no title yet, probably won't be released until next year, he says.
"We decided to wait for the market to write its third act, which it has, and it's been quite a dramatic third act," Blodget told Dow Jones Newswires, referring to the steep plunge in the value of Internet stocks in the last year. "So, I think it'll make it a much better story, which is great."
His book "will tell the story of the first five years of the Internet phenomenon," Blodget says, from Netscape Corp.'s explosive initial public stock offering in 1995 through America Online Inc.'s blockbuster acquisition of Time Warner Inc. in January, which produced AOL Time Warner Inc. (AOL).
In penning the book, Blodget is returning to his roots. Before he became a Wall Street analyst, he was a freelance journalist and aspiring author.
Random House spokesman Tom Perry confirmed that the publisher still planned to release Blodget's book, but that a new release date hasn't been set.
Will anyone want to read about an imploded sector of the stock market, especially from the viewpoint of an analyst whose star has faded? Not only have Internet stocks taken a hit, but Blodget himself has come under fire from investors and the media because he remained bullish even as stocks tumbled last year.
One Merrill client has gone so far as to file an arbitration case against Blodget, in which the investor alleged he bought shares in Infospace Inc. (INSP) based on Blodget's buy recommendation, but then lost money when the stock plunged in value.
Despite these apparent setbacks, there's still a market for Blodget's book, said Andrea Pedolsky, a New York literary agent who specializes in business books.
"Even though Internet companies went under, there are still stories to tell," Pedolsky said.
If Blodget takes the right approach, his book could even bolster his reputation. "I'm sure he can dig his way out of it if he writes a really good book," Pedolsky said. "It'll come down to what lessons he's learned." |
