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Technology Stocks : USA/Lycos

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To: S.A. Smith who wrote (9)2/11/1999 7:29:00 AM
From: S.A. Smith  Read Replies (1) of 47
 
Here's a rough estimate of "worth"...

As per my last post, it will remain to be seen whether this new company will be valued as an internet business or as a more traditional business. Expanding on the last post (which valued the new company at $16 to 20 billion), I roughly summarize:

LCOS 42.9 mm shares 30% of 16 - 20 bb = 4.8 - 6 bb or 112-140/sh

USAI 155.2 mm shares 61.5% of 16 - 20 bb = 9.84 - 12.83 bb or 63-79\sh

TMCS 69.5 mm shares 8.5% of 16 - 20 bb = 1.36 - 1.7 bb or 20-24/sh

Note that I find 42.9 mm shares of LCOS outstanding, not the 53mm Ms. Williams estimates.

So, in a "worst-case" valuation of the new company it appears there is still pretty good upside in LCOS and USAI...If we get valued as a pure internet play, all the better...
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