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Technology Stocks : America On-Line (AOL)

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To: Venditâ„¢ who wrote (14221)5/1/1999 5:17:00 PM
From: Steeny  Read Replies (3) of 41369
 
Vendit and the thread, this whole battle between AOL, Comcast, MSFT vs. T to control Mediaone troubles me short-term for AOL. Long-term, I am beginning to feel this would be a fantastic play for AOL. I am very happy to see MSFT join the fray and help AOL and Comcast. They have just the cash needed to pull this off. There is no way AOL could have done this alone.

However, if this becomes a bidding war for Media one, AOL will be weakened. Let's assume the AOL group wins the war. Obviously, a lot of AOL stock will be put on the table and be given to more conservative Media-one shareholders. I feel that the Media-one folks will dump their AOL stock on the open market causing a near-term severe correction in the stock. I hope I am wrong about this. Historically as well, acquring companies' stock get hurt in the short term after an acquisition.

Long-term, this seems like a war AOL has to win. If T wins the battle, and the federal government doesn't force open cable wires to AOL, T will have the upper hand. I am debating getting out of AOL short-term until this battle is over. I would like someone knowledgable to talk me out of this.
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