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Technology Stocks : America On-Line: will it survive ...?
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To: cruncher who wrote (8673)3/8/1998 9:46:00 PM
From: Craig Richards  Read Replies (1) of 13594
 
cruncher,
AOL raised its rates a day or so after the Compuserve acquisition. One bullish explanation is that the Compuserve acquisition gave AOL monopoly power over the market, so it could raise its rates.

I think they did it because they realized that they're not making money on access fees, and the ad revenues aren't ramping up as fast as expected, so they had to do something to keep from losing money.
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