E.Davies: Thank you for your response. You make some valid points, but I still think that AOL will not end up teaming with Media One. You wrote: 2) Even if they did get involved, it would only give them access to Comcast and Media One homes. That is not the nationwide coverage they seek. ALL broadband deals are this way. Built one region at a time. Very weak argument. In fact, your rebuttal was weak: The other cable companies are already tied up, either with RR or ATHM. AOL would be getting their hands on Comcast and Media One. That is not a start, as you would argue. That is ALL they would be getting.
You misspeak when you say AOL has always intended to get into cable. Yes, perhaps they intended to get access, but they sure as hell never thought that they would have to BUY Media One, and take a controlling interest in Comcast to get into it. And to be totally accurate, AOL wants fast access. They have never been married to the idea of cable.
With regard to earnings, AOL DOES have earnings, and this deal would be dilutive. When internet stocks with no earnings (ie: ATHM) make these huge stock deals, they have no earnings to begin with, so they do not concern themselves with dilution.
So, have a beer (or your beverage of choice) and don't worry about it. After all, there is nothing we can do about it anyway. Read the article I just posted. Broadband is the wave of the future, ATHM dominates the cable access, and ATHM will create wealth for many of us, whether or not AOL tries to pry their way in. |
