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Technology Stocks : AUTOHOME, Inc

ATHM 23.31

-0.4%

12:04 PM EST

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To: Geof Hollingsworth who wrote (29493)	11/30/2001 9:25:27 PM
From: FR1	Read Replies (2) of 29970

The MSOs can build a replacement network for a fraction of the cost of building the ATHM one.. That's a pretty bold statement. If it is true then why did they set up ATHM in the first place? The truth of the matter is that the MSOs looked at the R&D needed to have a system that worked across all their areas uniformly, the money involved in upgrading hardware, etc etc and they decided the easiest thing to do is create one company that would do all that dirty work. They can go ahead and build their own networks and save $X/sub but now they will have to pay all the employees needed to run the system, upgrade the hardware at their expense, do all the R&D necessary to advance the system, etc. etc. all of which may cost more than $X/sub. Add to this the fact that the system will probably go to hell because the management will not want to spend money on anything and, from a business point of view, I really wonder if it makes financial sense to go down the path of having every MSO recreate their own baby ATHM.

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