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Technology Stocks : General Magic

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To: Sea Otter who wrote (5930)4/28/1999 12:50:00 PM
From: Roger Bass  Read Replies (1) of 10081
 
SUNW rumor

Makes no sense to me either. GMGC is an service operations business. Sun is a hardware, software and services business. I'm not aware of anything they do in the hosting area. So, a business relationship I could believe, acquisition I'm rather skeptical.

As to MSFT, broadly their core business is elsewhere. However, that didn't stop them buying WebTV, which is in some ways comparable to GMGC - an operational service back-end that supports a new kind of delivery channel. Still, I'd be surprised.

Generally, as regards the chances of a buyout, does anyone know what percentage is held by management? What percent is held by VCs or other core investors? I would be surprised if this group would want to sell for anything less than a large (5x 10x ?) multiple of the current price, especially given where they are on their roll-out plan.

- Roger.
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