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Technology Stocks : America On-Line (AOL)

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To: Dustin who wrote (15628)5/7/1999 12:57:00 PM
From: Steeny  Read Replies (2) of 41369
 
Too many of us are trashing ATHM. The fact is no-one is sure how the internet will be carried in the future. Cable is a pretty good bet-considering cable's growth and capabilities. ATHM is the leader there at the moment. AOL cannot and will not rely on phone lines alone to provide internet service. In my opinion, there are 3 options to achieve this:

1. An agreement with T to lease some cable wires. The end product has to be comparable in price to ATHM. To join with another firm is fruitless since T now controls 60% of the cable market. I believe this is what will happen. It is in T's interest to make a deal to keep Congress at bay. My only worry here is what T charges AOL vs ATHM for the lines.

2. Congress forces open the cable wires.

3. Congress doesn't allow the T-UMG merger.This would be the best for AOL as Comcast would probably end up with UMG--good for AOL
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