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Technology Stocks : AUTOHOME, Inc
ATHM 24.08-3.1%Nov 14 9:30 AM EST
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To: Jay Lowe who wrote (4426)1/19/1999 12:06:00 AM
From: E. Davies  Read Replies (2) of 29970
 
I find it hard to swallow the idea of paying 3.5B for some code and relationships that could be reproduced for 1/10th the cost
Only 1/10th? Gee I thought it would be even less.
What you are buying is a) time and b) reputation

You can create another portal, many have tried. It takes a lot of time and effort to build up a user community. People dont like to give things up once they are used to them. This is why AOL is such a success, not because it is good, but because it is familiar and everyone else uses it too.
I'm deeply connected to my personalized "My Yahoo". 90% of my hits in a day are to Yahoo because they make it easy to get the stuff I like. Excite has the same kinds of features. Yahoo is better than Excite at least it was last time I checked (I dont check anymore-get it?), but then Yahoo isnt for sale is it?
Eric
P.S. It isnt really 3.5 Billion, its just stock that will increase the float by something in the order of 15%. I only hope that by merging a ".com" into a larger organization the ".com" doesnt lose its stock value. Most organizations are doing exactly the opposite trying to get extra value from the ".com" by splitting them away from the parent. I'll bet altavista is doing very little to help the stock price of CPQ.
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