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Technology Stocks : Exodus Communications, Inc. (EXDS) -- Ignore unavailable to you. Want to Upgrade?


To: Pruguy who wrote (627)6/16/1999 1:39:00 PM
From: HeatherN  Respond to of 3664
 
Pruguy,

Each has made numerous and large acquisitions over the past 1-2 years. Stock deals work for integrating smaller companies (usually). In addition, there has been a lot of hardware and infrastructure improvement. Just the computer power alone needed to operate on their level is mind boggling. These things, as well as advertising, office supplies, utility bills etc are things that cannot be done with stock swaps. It also dilutes the value of each share to do stock only deals. With revenues increasing as rapidly as they hope, it may be easier for them to pay off the debt in this relatively low interest rate climate(until Greenspan speaks anyway <vbg>)than it would be to "regain share value".

HeatherN