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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (72025)	8/5/1999 1:09:00 AM
From: Michael Young	Read Replies (1) \| Respond to of 164684

<<Why not? >> It sure doesn't seem very likely does it? Especially now that the market is suddenly concerned about earnings, or lack thereof. Bezos and company are between a rock and a hard place. They are running huge operating losses as it is. Adding over $55 million in annual debt expense is simply too much. They had hoped to quickly convert the bonds into stock. With that prospect dim, they have to come up with another idea. As the referenced poster suggested, the obvious answer is to negotiate with the bondholders to lower the conversion level. The bondholders will agree - in return for a massive amount of stock. The resulting dilution of existing shareholders will lead to much pain. But at least they won't have to pay back the debt. MIKE