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Technology Stocks : AUTOHOME, Inc

ATHM 23.21

-1.8%

Nov 20 3:59 PM EST

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To: Boplicity who wrote (5660)	2/23/1999 1:33:00 AM
From: steve host	Read Replies (2) of 29970

Not sure I understand your post, but the ATHM service costs $40 and it is well worth it since you dont need a second phone line which most true internet users need. The big concern for AOL is that people will not want to pay the extra $22 in addition to the $40 that ATHM charges just to get AOL (probably right). To resolve that problem, ATHM could split their fee with AOL so that AOL subscribers would pay the same as pure ATHM subscribers , or maybe $5 more say, but AOL will be forced to give % of ALL revenue derived from ATHM pipes to ATHM in exchange for the use of their pipes (something AOL does every day with their advertisers). THis would mean hundreds of millions of dollars from advertising revenue as well as a piece of what AOL gets from the revenue of their advertisers pursuant to their own revenue sharing contracts. In effect ATHM becomes a partner with AOL. The loss of $20 worth of subscription fees per month will be more than made up by the billions ATHM would take in in the revenue sharing. This is all my speculation, but I think it is reasonable and fair to both AOL and ATHM.

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