Think this is what you're looking for, James. AOL a SPLN "investor."
As far as I recall, AOL made its typical deal with SPLN some time ago, where it trades placement for equity. Not sure of AOL's current percentage stake. Quite an "investment" portfolio being assembled, wouldn't you say?
Yet another indication that AOL and CBS are getting cozy...
BAM
***
Technology News
Sun, 18 Apr 1999, 5:36pm EDT
AOL Investments' Stake in 13 Public Companies Worth $400 Mln
AOL Investments' Stake in 13 Public Companies Worth $400 Mln
Dulles, Virginia, April 8 (Bloomberg) -- America Online Inc.
owns stakes in 13 public companies worth about $400 million, and
at least two of its 18 closely held companies plan to go public
soon, said Lennert Leader, president of AOL Investments.
AOL, the world's biggest online service, paid anywhere from
nothing to $10 million for its minority-ownership positions, so
total gains on the public companies alone are in the hundreds of
millions of dollars. AOL Investments' stable of 31 companies
ranges from closely held Web financial-news service Motley Fool
Inc. to online sports service Sportsline USA Inc., which has a
market value of more than $1.1 billion.
Like Intel Corp., Microsoft Corp. and Cisco Systems Inc.,
Dulles, Virginia-based AOL is enjoying the fruits of investing in
small, private companies before they go public. The companies see
their investments as a way to make money and gain control over
new software and content that can help them retain customers --
and which might otherwise fall into a competitor's hands.
''The portfolio is growing nicely,'' Leader said in a
telephone interview. ''An AOL 'Good Housekeeping Seal of
Approval' adds credibility and really puts these companies on the
map, and they can get a higher (valuation) because of that
association.''
Big Returns
The returns are attractive. On Multex.com Inc., which makes
securities research available to investors over the Internet, AOL
paid $2 million for a stake now worth $25 million, Leader said.
AOL's 10 percent stake in iVillage Inc., an online women's
network, is now worth more than $220 million, a profit on paper
of at least $200 million.
AdForce Inc., which delivers advertising over the Internet,
has filed to raise $55 million in an initial public offering. AOL
is AdForce's biggest shareholder, with 2.5 million shares.
At least one other company is preparing a filing, Leader
said, declining to name the company.
''We're looking at companies where there's a strategic
link,'' said Leader, who was named to his current post in
February 1998, after nine years as chief financial officer.
''We'll look at any product or service (that) increases
usage, increases retention of customers, or makes the experience
more sticky'' so users stay online longer, he said. For example,
the desire to have an e-mail account may attract some users. Once
online, they may then create ''buddy lists'' of people they often
e-mail, or a portfolio of stocks they follow.
More Investments
AOL's stakes in closely held companies include NetNoir, an
African-American online community, and bridal site The Knot Inc.
Other public holdings are in phone company Tel-Save.com Inc.,
online travel service Preview Travel Inc., and Web computer
retailer Beyond.com Inc.
Internet-access technology based on cable TV is ''one of
many areas'' AOL has looked at, said Leader. ''We have
articulated a strategy of 'AOL anywhere.' We're looking to make
the AOL service totally ubiquitous.''
He declined comment on reports that AOL, which now has a
market value of $162 billion, will acquire CBS Corp.
Like Softbank Corp., which formed a joint venture with
E*Trade Group Inc., in which it's the largest shareholder, AOL
can profit from closer links with its companies.
''As these companies expand their relationships with us, it
gets more interesting,'' Leader said. ''When Multex signed an
exclusive agreement with AOL, the stock popped 50 percent.''
quote.bloomberg.com |
