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Technology Stocks : INFOSEEK (GO) -- Ignore unavailable to you. Want to Upgrade?

To: David Lee who wrote (9169)6/10/1999 11:04:00 AM
From: charger  Respond to of 9343
 
Here's my take: DIS paid about $550M for the first 43% of SEEK in cash, warrants, and Starwave valuation. SEEK got absolutely hosed on that deal, and will now make up for it. If we/they place a conservative valuation of $3B on SEEK, or a price of $50, then the 57% stake would be worth $1.7B. 1.7B + .55B = 2.25B net to Infoseek...short by .75B because they only paid 550M for the first 43%. So, they are going to have to juice the remainder. Let's assume they will pay 1.7B plus the .75B and you get about 2.5B for the remainder, or a SEEK price of about $75. Not unrealistic at all IMHO.



To: David Lee who wrote (9169)6/10/1999 12:41:00 PM
From: D.J.Smyth  Respond to of 9343
 
it was for a limited number of shares; purchase warrants that allowed it to purchased a majority stake, not the entire company:

"Disney will also purchase warrants enabling it, under certain circumstances, to achieve a majority stake in Infoseek over time."

There were also time constraints on the excercise of the warrants; constraints which have not yet been met. So, if they want Seek, they'll need to more than likely pay a much higher price than $49

ir-infoseek.com


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