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Technology Stocks : How high will Microsoft fly?
MSFT 486.98-1.4%3:59 PM EST

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To: DownSouth who wrote (13657)12/31/1998 10:53:00 AM
From: Gerald Walls  Read Replies (2) of 74651
 
An interesting problem with the portal companies having incredible valuations--it makes them to expensive to be candidates for acquisition. It may actually be in the interest of their core shareholders to drive the price down.

An interesting thought as this would be a way to cash out. They certainly can't sell now without causing their stock to plummet.

However, it's unlikely that many portal acquisitions will ever occur. An analyst pointed out that these portal companies, with billions of bucks of market cap, consist of a few key people and tens of millions of dollars of computers. A company that wants a portal business can buy the equipment and steal the key people by paying outrageous signing bonuses and come out far ahead as compared to acquiring an existing company.
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