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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Tae Spam Kim who wrote (24028)	6/25/1999 2:09:00 PM
From: Rascal	Read Replies (3) \| Respond to of 41369

CNBC just said "Blodgett said AOL will have trouble making earning and will meet expectations on the low side." Brief and too the point. However, I checked my e-mail from Cramer (thestreet.com) and this is the whole story.(see below) Good Help is Hard to Find Speculation emerged yesterday America Online (AOL:NYSE) is negotiating either the purchase of PC maker Microworkz.com or some sort of marketing agreement under which the two would produce "AOL-branded" PCs. MSNBC first reported the story. Today, Merrill Lynch Internet analyst Henry Blodget published a report sent to clients that stated the deal as fact. "AOL announced an agreement with Microworks[sic], an OEM, to produce an AOL branded internet access device that will be given away or made available at a nominal cost, thus enabling AOL to benefit from access revenues," the report said. That the name of the company reportedly involved in the deal was misspelled in the Merrill report should have been an indication something was amiss (at the Circle K). "We haven't announced anything," said Tom Ziemba, an AOL spokesman, while declining to comment further on the possibility of any AOL-Microworkz.com combination. Blodget could not be reached for comment. But an assistant in his office said rumors about talks between America Online and Microworkz were mentioned during Merrill's morning call and the person who wrote the report mistakenly indicated a deal had been announced. Luanne Brown, director of public relations at Microworkz.com, confirmed the company is in talks with AOL but said it was not a done deal. So perhaps this was just a case of an overzealous employee getting it wrong; more proof full employment has its drawbacks. Or maybe Blodget and his staff accidentally reported on something they were tipped off about by AOL but were supposed to keep under wraps. "We recently spoke with management regarding free European Internet access, the bundling phenomenon that's occurring in the U.S. and the advent of free access services in the U.S.," the report says. "After speaking with management, we expect strategic moves to be made in response to these changes in the competitive landscape in both England and the U.S." In the conclusion of the report, Blodget (or some unreasonable facsimile thereof) writes: "The implications of this alternate business model will be driven by higher volume in exchange for lower profit per user. Management indicated that they are comfortable with the economics of such a model." Blodget's office denied it was tipped off by AOL. Meanwhile, a source close to the situation confirmed the companies are engaged in "initial talks, but not about an acquisition." The source, who requested anonymity, said the firms have "talked about an OEM marketing deal like AOL's done with a dozen other PC makers, where AOL software is loaded on the machine." I never cease to be amazed about the shabby quality of CNBC. It borders on manipulative practices. JMHO Mr. Rascal