RRRR - ICC Technologies/Rare Medium Message Board

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Technology Stocks : RRRR - ICC Technologies/Rare Medium

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To: Abuckatatime who wrote (924)	12/4/1998 10:23:00 PM
From: Mahatmabenfoo	Read Replies (1) of 954

> LOI to acquire Big Hands and FS3 Interactive - I don't get it: where's the synergy? Web companies are service providers, which means they are inherently of limited profitability. At best, the company keeps a little bit more money than they pay their employees. At worst, in slow times employees sit around... This is different from copyright-products companies, which if they have a hit, get hugh amounts of money (selling 100 copies of a game doesn't cost much more than selling 10 copies, but the profit is much bigger). But it's not like by buying more web designers in more cities the company would now be positioned to get bigger clients or provide more expensive services to the same clients. There is another way, and I wish RRRR would follow it. If it concentrated on having one office provide more and more sophisticated services (which to some extent requires more sophisticated equipment, like 3D workstations), it could eventually migrate to related businesses (computer game creation, title generation for films, interactive programs for worker training) where the real money is. - Charles

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