Thought you guys might be interested in this post from Rand Is. He has some very interesting ideas about the future of T.
To: William Jepsen (3876 )
From: Rande Is Friday, Feb 26 1999 9:28AM ET
Reply # of 3901
AOL needs broadband. . .
Remember all the rumors about AOL wanting to buy At Home Network?
Remember when I called At Home Network the CROWN JEWEL of the A.T. and T. / TCI merger?
Remember how many times I have said that A.T. and T. will be declared "the winner" in the internet race in about 2-3 years along with MSFT?
Now why would T want to give up ATHM to anyone? They wouldn't.
T has had a plan for a long time of becoming the dominant force in the broadband "next generation" internet. . .the one with real-time video and audio. . . the one that will leave the current internet to be shelved along side 8-track tapes and phen phen.
The partners have been picked and there are few chairs left for when the music stops. . . A popular portal married to a broadband communications provider [cable company?] married to a fibre optics heavy telecommunications firm. This is the perfect internet marraige for the new millenium.
So today we hear rumors that AOL has signed a MAJOR partnership deal with A.T. and T. The media can't yet make any sense of such a deal.
But to those in the know, it is obvious. ATT is the LEADER in telecommunications. . . TCI is the LEADER in cable and AOL is the LEADER in portals. What is not to understand?
A.T. and T. is under 85 as I write. I think the price has already been discounted for TCI absorption and should not suffer much more. [incidently at this point, T is a better value than buying TCOMA or TCOMB pre-merger]. AOL has a 75 billion market cap and a 342 PE ratio. . . . T has a 150 billion market cap and a PE of 29.
ATT has not been viewed by Wall Street or Individual Investors as a MAJOR internet player. . .yet. For the long-term put it in and forget about it, play. . . .I see T as a steal at this level. And should AOL actually make the rumored deal, the marraige of T / TCI with ATHM and AOL tagging along. . . .will be nearly impossible to beat. . .even by MSFT. . . .and it will leave Yahoo, Excit, MCI/WorldCom, Time Warner, and everyone else. . .in the dust. . .
This is strictly my opinion.
Rande Is |
