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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: stock talk who wrote (13409)	7/20/1999 8:53:00 AM
From: Hiram Walker	Read Replies (2) \| Respond to of 14577

stock talk, * HUGE DIMD NEWS!! MTV takes stake in RioPort!!! news.com MTV Networks Online today joined forces with Diamond Multimedia subsidiary RioPort to expand its online offerings to include secure music downloads, the companies said. Under the terms of the deal, MTV Networks will get what president Fred Seibert characterized as a "significant" stake in RioPort, which builds hardware and designs software for music downloading and also operates RioPort.com, a download and information site. Seibert declined to specify the size of the stake, though he said it is a minority. MTV Networks Online will provide content to RioPort and will promote RioPort's site and products on all its sites, the firms said. MTV Networks Online also will get a cut of revenues from the sales of music downloads; the firms declined to give further financial details. RioPort, for its part, will create the infrastructure for MTV Networks Online's properties to offer secure music downloads. With SDMI on the minds of both RioPort and MTV Networks, the two have signed on their first major record company: Universal, which will offer access to its content for download using the RioPort technologies on MTV Networks' sites, Seibert said. He added that the two firms are "in discussions with all the major labels to provide their content," and they plan to offer content from independent labels as well. Along with offering music downloads, the firms plan to offer sales of concert tickets and other merchandise, in what Seibert said will be a "dizzying array" of offerings. "We want to be there to help consumers have the experience they have been asking for," which includes all manner of sales as well as downloads. He added that with MTV Networks' purchase of streaming Net radio firm Imagine Radio in February, the sites will offer content in every way consumers are demanding it. Hiram

To: stock talk who wrote (13409)	7/20/1999 10:04:00 AM
From: SBHX	Read Replies (1) \| Respond to of 14577

Well, if you believe in DIMD as a good asset, then the dilution is not an issue. If you have doubts, then it is dilutative. There could be middle grounds, S3 could issue 10M new shares, buy 8.2M of existing shares, and that might be better. Or S3 could issue all 18.2M new. There's lots of middle ground scenerios, of which all 18.2M being new shares is the least stock-holder friendly. I don't think it would be dilutative under either scenario. My view is your picking up DIMD and 600 million in sales which would more than off set any dilutative effect, if any. In fact I would see it as being accretive regardless of which method is chosen. By your logic, it wouldn't make sense for S3 to buy LU if it meant they have to issue another 1000 shares?