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Technology Stocks : Gemstar Intl (GMST)
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To: tinkershaw who wrote (6360)3/13/2004 2:17:52 PM
From: Mike Buckley   of 6516
 
Tinker,

Did GMST have enough bargaining power to ensure its future revenue share on ads that are not directly plastered on the Guide?

I doubt it. Gemstar's bargaining power weakened to the point of getting a 50/50 split of advertising revenue on the Guide. Under the Yuen regime they were getting an 85/15 split. That is to say they were getting contractual agreements, though little advertising revenue. At the current 50/50 split, they are still getting no meaningful advertising revenue. Time will tell.

--Mike Buckley
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