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Technology Stocks : America On-Line (AOL)

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To: Tunica Albuginea who wrote (1531)	1/5/1999 5:30:00 PM
From: HECTOR RUBERT	Read Replies (3) of 41369

I guess one can say that AOL lost ground on the news of their 55million investment on Tel-Save today. However, the good news about this is that AOL is very actively securing key investments and partnerships that will increase company visibility to the consumer market as well as add income streams. Consumer market penetration using CBS networks will be key in luring internet newbies to the AOL platform. The leveraging of a leading network for AOL advertising is brilliant. The Tel-Save investment guarantees payments from Tel-Save from AOL 'till 2003. Plus, it leads to the notion that AOL wants to add to its income streams by increasing their involvement in the Long Distance Phone Service market. The missing part of the puzzle remains broadband access. However, as I recall back in november TimeWarner surprised everyone when it announced that it would display their precious media content on AOL. This surprised analysts who speculated that Time Warner would seek to leverage its media content into a portal strategy to compete against the AOL's and YHOO's. The question everyone should be asking is to what extent is TimeWarner working with AOL. There is no doubt that AOL is the largest media company in Cyberspace. TimeWarner is the largest media company in the world. These two giants want a piece of each others action. AT&T with the TCI acquisition, their WORLDNET networks, and their large presence on the portal space; poses the largest threat to AOL. As it stands, AT&T would be able to leverage its telecommunications service, TCI cable service, WORLDNET service, and TCI's ATHM all in one package service to consumers. This will result in a captive consumer audience. AOL's announcement deal with CBS today for cross advertising between the networks clearly shows AOL's concern and interest in addressing the TV market. A Time Warner and AOL deal will crush any hopes for AT&T to dominate the consumer market. Friday I expect no less than 160 once the side-ways trading ends and AOL gets real legs in the 147 range. IMHO Hector

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