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Technology Stocks : MindSpring Enterprises (MSPG) Another ISP. -- Ignore unavailable to you. Want to Upgrade?

To: Vish Vishwanath who wrote (1104)	6/24/1999 4:09:00 PM
From: Tom_	Read Replies (1) \| Respond to of 1434

Merger or What? revisited. Hi Vish! IMO, since we don't know what the "possible business combinations" are yet, it would be premature to guess about a purchase price. If you put my feet to the fire, though, I'd probably scream, "Higher than the 80's!" <g> Dow Jones News Service ~ June 24, 1999 ~ 2:30 pm EST NEW YORK (Dow Jones)--MindSpring Enterprises Inc.'s (MSPG) discussions about a possible business combination appear to stem from a need for the company to augment its core Internet service provider operations. The Atlanta company may be looking to team up with another ISP and swiftly add to its subscriber base, or to team up with a Web portal site or telecommunications company, analysts said. MindSpring issued a statement Thursday saying it is considering a business combination with another company or "other alternatives," and declined to comment further. A spokesman was not immediately available. The announcement didn't surprise analysts, some of whom have in recent months predicted consolidation among ISPs. The Wall Street Journal reported Wednesday that Gateway was in early talks to acquire a MindSpring rival, EarthLink Network Inc. Less clear Thursday was the form of business combination MindSpring is contemplating. It could either acquire part or all of another company or be acquired by another company. Some analysts, including Fred Sadler of FAC Equity, believe MindSpring will do the acquiring. Sadler noted that MindSpring has said it wants to be the No. 2 ISP, behind America Online, but he wasn't ruling out MindSpring's acquisition by a telecommunications. William Blair & Co. analyst Abhishek Gami believes ISPs need to pair with Web portals or electronic commerce companies in order to survive. He also said there are large telecoms that would like to acquire ISPs. "I have a tough time seeing ISPs without e-commerce or other services," Gami said. Sands Brothers & Co. analyst James Waggoner thinks MindSpring will probably be acquired by another company, most likely a telecom or Web portal company. He said he doubts a pure electronic commerce company would buy MindSpring. ~~~~~~~~~~~ Best wishes, Tom