To: TLindt (5057 )
From: Roger Bass Wednesday, Apr 28 1999 12:39PM ET
Reply # of 5083
Despite the enthusiasm here for anything that seems likely to drive the price up, the comments quoted here are as dumb as anything I've heard from any analyst for a long time. Specifics:
1) Yahoo is a channel, a distribution business. Processing is way
different as a business.
2) Exclusivity on a particular offer is, of course, a good thing from
any channel's perspective. In processing businesses however, volume is critical. CF's viability would be seriously impaired as a 'captive' processor, for this reason, and even more seriously, since they'd be less attractive to billers if they lost distribution.
Also, saying that "It would be the most successful acquisition [they] ever made" is just generally an idiotic thing to say about any acquisition until the real results are known. Reality is, about half of acquisitions are unsuccessful, especially compared to the hype that always accompanies them.
And finally, the comment that CF is the "sole provider of online bill payment services", though it may warm the cockles of our collective hearts, betrays ignorance about this space from someone who is, after all a portal analyst.
- Roger.
Message 9196161
To: Roger Bass (5070 )
From: TLindt Wednesday, Apr 28 1999 12:54PM ET
Reply # of 5083
>>>betrays ignorance about this space from someone who is, after all a portal analyst.
Yea...all of that, and don't forget the part about being able to pick this up for $3 Billion. That's less then 1 x market 48 eight months out...if those other ANALysts are correct.
>>>Also, saying that "It would be the most successful acquisition [they] ever made"
Like I'll give you a box of beads and some trinkets for Manhatten Island...that would be the most successful acquisition [they] ever made too! But it ain't gonna happen....that's what we have middle fingers for.
Message 9196530
|
