SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : AOL, now I get it
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: yard_man who wrote (282)1/14/1997 5:54:00 PM
From: Richard Vaughn   of 496
 
Regarding the companies management. I am a CPA with about 6 years accounting experiance. I currently am working as Network System Analysis. So I will make my statements with some knowledge about what I am saying though certainly not the only outlook nor 100% correct. AOL amortization of subscriber acquisition cost is not phony. This is how mag, newspaper, and many other industries treat this cost. It is no differant than depreciation of a building (which is really phone using real world look). It is a way of allocating/matching the cost of aquiring an income producing asset with it revenues. I have no problem with them expensing these cost or amortizing them. It would only be phony if the didn't disclose it, of course they would never get a clear audit but I digress. I don't believe they botched the new pricing I think they responded to a threat from MSN. MSN also is having some problems with logon, this is anecdotal info, and they have a smaller customer base. AOL had 2 major changes to the variables which one uses to calculate demand; user time on and number of users. While it would be nice if they had up the capacity it is impractical to do so. Microsoft and other have shown that putting out a popular product that has flaws to gain market share and then fixing and upgrading is a successful business model.

I assume you have other compliant about the management I would be interested in hearing what they are.

Richard Vaughn
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News