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Technology Stocks : How high will Microsoft fly?
MSFT 500.36+0.7%11:46 AM EST

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To: LindyBill who wrote (15330)1/31/1999 2:49:00 PM
From: t2  Read Replies (1) of 74651
 
The cable companies have too much control. The other factor is that
no new cable lines are necessary. These costs have already been
incurred for the most part, whereas any alternative will mean a
lot of costs to set up the network.

I think this why AT&T got so interested in cable---internet and
local phone access. I don't know how big TCI is---but if anyone
has any information of what the ranking of cable companies in
terms of size, I would appreciate it.

Then there is Microsoft co-founder, Paul Allen who bought cable
companies. Both Allen and Armstrong (AT%T) seem to be intelligent
executives who realized how much potential cable has.
(Actually Allen may not be that smart since he sold so much of his
MSFT shares).
Consider how interested MSFT got in cable. Their first big move
was to invest in Comcast cable. That is what pushed up stock
prices in cable companies--an endorsement in cable technology by
Microsoft.

To sum up---AOL has got the brand name but not the network it
really needs.
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