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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: Susan G who wrote (10628)	8/3/1999 1:16:00 AM
From: PatrickMark	Respond to of 28311

Thanks, Susan. The paragraph I cited spoke volumes to me about PA's intentions. Can you envision the negotiating session at which this agreement was hammered out? There are big bucks here, and HSAC wouldn't agree to this kind of loss of revenue without some substantial assurances WRT to their prominence in the Wired World scheme. VV wouldn't agree to it without this type of exclusivity. Good to see VV playing hardball. I think they're in a position to do it. I can't see a deal whereby AOL buys GNET. GNET would command too high a price vs. value added. And besides, PA's much too powerful to sell out to AOL - it would be a concession of pride, given their past relationship. And with PA's wealth, why should he take a backseat to Case. Case is sweating, he's a little boxed in. PA's just getting rolling and has invested diversely enough that he has all kinds of options/contingencies (e.g. what if the broadband issue doesn't go his way). Not to mention that such a deal would screw Russell over big time, and I don't think PA would do that (I hear they talk almost every day). And one last point, PA needs a portal - how would he replace GNET? What I can see is a deal between MCOM and AOL, who is clamoring for broadband options and capacity while they can still leverage their enormous customer base. A few weeks ago, we were all alarmed to find out that VV's Bill Savoy was in talks with AOL. My guess is that MCOM was the topic of this meeting. (I'll be posting on the MCOM thread in the next day or so about why I think this makes sense - I want to get my facts straight first). But AOL and GNET are autonomous now, IMO. Any deal would have to have been 18 months ago. Portals don't need portals now, they need broadband. Obviously, this is JMO, but I think you can see that the additional paragraphs Susan posted support this thesis. PM