Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (10720)	6/7/1999 2:41:00 PM
From: Ron Dior	Read Replies (1) \| Respond to of 29970

<<It occurs to me here that T has gotten the bulk of focus on this thread. Has it been disproportionate to AHTM's fate, or very crucial to it? After all, the linkage between ATHM and T, as with the other MSOs in this situation, can be viewed as temporary in nature by some measures, and under certain conditions, namely that of contract terms (durations), and the covenants that are agreed to relating to the type of content that may be transported over the last mile.>> Frank, you bring up an interesting point. I think to address it we need to first look at the main thing that is linking these two companies, mainly money. T has taken a large stake in ATHM. Why? How many here think that T foresaw what might occur with "open access"? I for one think that they KNEW it would come up. So the next logical question is, why would they invest in ATHM knowing this could or would happen? Why not use the money to buy more cable companies, or for rollout purposes. I am sure there are a million and one other things that they could have done with this investment. First of all we already know that T can make a ton of money with open access, somehow charging all involved. We already knew that T could make even more money with closed access owning the whole process. There is a third plan though. T makes money off of everyone through open access but still makes a ton of cash off of its preferred choice ATHM. The courts can only control so much of what goes on. Because of their big brother T, ATHM will have special deals and privileges with T's companies that legally can't be constrained. This will put ATHM's high-speed system ahead of its peers so other cable companies will have to follow suit offering some the the same package deals to their customers. This puts T and ATHM in a win/win scenario. ATHM will become the king of high-speed cable, and T wins twice because they own a share of them. This IMVHO is the master plan of T. Meanwhile, getting cable access will not be as great as other ISP's had once thought because of cost and benefits so they might look to other technologies to take advantage of. So in answer to the original point. Yes, I think T is crucial and directly linked to ATHM's success. ATHM needs help especially if there is open access. I think T is their ace in the hole. This is one way I see it playing out. Ron Dior