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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: E. Davies who wrote (13530)	8/4/1999 5:35:00 PM
From: Jing Qian	Read Replies (1) \| Respond to of 29970

All I see is that Cox and AT&T would be stuck with a pile of Yahoo stock instead of ATHM stock. They would be owners of a smaller percentage of an even more content oriented company. What's the point in that? If Yahoo then spins off @home (keeping excite) what is the difference between that and just having ATHM sell Excite? Good point. Let's assume that ATT, Comcast and Cox keep ATHM's status quo till 2003, it's safe to project ATHM reach 10 million subs by that time. There is no reason ATHM can't attract 10 million users if time is provided. With the advantages that a BB cable is offering, ATHM's future is pretty secured. Even with a lesser capable management team, ATHM can still safely reach that number over the next 4 years. Open Access, if they can really open it up, will take at least 4 years. It seems more and more obvious that ADSL is not going to make it big, because most homes are too far from the COs. In light of this situation, what's at risk with ATHM? I don't see much. I don't quite understand Ahhaha's logic that ATHM will not make it unless you put them into fierce competition mode with AOL and the like. With or without competition, ATHM will make it to 10 million subs. So Ahhaha, what's your concern about ATHM really is? The only thing that worries me is the inner conflicts between TJ, GB and the rest of committee. If ATHM ever fails, they fail to themselves, not to AOL, RBOCs and Open Access folks.

To: E. Davies who wrote (13530)	8/4/1999 9:07:00 PM
From: ahhaha	Read Replies (2) \| Respond to of 29970

1. sell Exite?. 2. pool the interests. The MSOs would have a less effective equity interest, but so what? That is of secondary importance. You got to get a yield out of the business first. If MSOs devote their efforts to generating top line via subs, ads, VOD, whatever, their equity interest will be served far more than if they concentrate on preserving their equity interest and stay with questionable Excite? model they have now. The argument is that YHOO management and presentation doesn't add enough to merit a merger for the equity dilution. That's a judgement call and it is my judgement that YHOO adds so much more that it is a savior in disguise. ATHM has got this subs to passed ratio problem. YHOO can go a long way to solve it. The MSOs can't see this because they are buying the hype that they never believed two years ago. They now are thinking that they have a gem when in reality, the gem is fading fast. I am quite sure that Excite? will be dumped and YHOO will be merged. The reason is the inescapable business logic of it. There is also the issue of survival. These two need each other and the fit is terrific.