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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: Michael Olds who wrote (9390)	6/20/1999 3:29:00 PM
From: killybegs	Read Replies (2) \| Respond to of 17679

What debts are you talking about? If you are referring to the 44 million in notes, this is long term debt. If does not have to be paid all at once and the cash flow from operations is sufficient to service the interest expense easily. If you are referring to the exercise of majority options recently, thats why the money was raised in the first place. And we know that exercising majority of both TvontheWeb and AENTV would cost 12.7 million in total for the entire investments. The investment by Ampex provides the working capital necessary for both properties to grow their business. If at some point in their growth ramp up they need more capital, then TvontheWeb and AENTV have access to the capital markets on their own, if it makes sense and if the dollars can be raised on reasonable terms. In terms of creating joint ventured channels going forward, I am of the opinion that much of the content will be provided by partners who already paid for its creation in the TV broadcast and cable world and want to create new revenues with a partner like Ampex who will provide distribution and marketing in the webvideo world. I expect sponsored channels where an advertiser bears the expenses of the channel. In other words, I expect Ampex to be using O.P.M. and contribute their production capabilities and video knowledge base to generate shared revenues from e commerce, subscriptions and advertising. I might point out that the 16.7 million technology license for 2 years with just one consumer electronics manufacturer exceeds the total equity investment in both TvontheWeb and AENTV