Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Wit Capital Group Inc - (Nasdaq - WITC) -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (778)	8/5/1999 4:20:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 845

Wit jumps on AOL deal--will it inspire some jealousy ? Henry: With 17-18 million eyeballs AOL has I am thinking a few will come onboard to WIT to trade after-hours and possibly to get some IPOs,in any event this news appears to be of substantial benefit to WIT and its shareholders and of course AOL members.I think WIT's customer base could easily double or treble on account of this AOL association.Have you any opinion on this? ================================ Wit joins AOL after-hours project- Analyst wonders if other e-brokers on AOL might be miffed By Emily Church and Frank Barnako, CBS MarketWatch Last Update: 2:16 PM ET Aug 5, 1999 NewsWatch NEW YORK (CBS.MW) -- Wit Capital's stock spiked 14 percent Thursday after the online investment bank said it will work with America Online as an "anchor tenant" for the Web portal's planned after-hours trading channel. Neither company would release details about the terms of the deal, but sources said New York-based Wit Capital is paying AOL a small amount of cash and will share advertising revenue. Wit (WITC: news, msgs) shares jumped 2 5/8 to 19 3/4. AOL (AOL: news, msgs) was off 3 to 84 1/2. AOL shares were under pressure on reports that Microsoft is readying a push into the Internet access business. See full story. The companies expect the After Hours Center to launch on Nov 1. Under the agreement, Wit will remain the exclusive tenant on the portal's personal finance channel for six months, the companies said on Thursday. Wit also expects to begin offering its brokerage customers after-hours trading access on Nov.1. Grumblings? Wit's six month lead over other brokerages on the after-hours site might prompt some jealousy. E-brokerages like Ameritrade (AMTD: news, msgs), E-Trade (EGRP: news, msgs) and TD Waterhouse (TWE: news, msgs) have ponied upto $25 million for two year deals for prominent placement in front of AOL's 17 million subscribers, and they might not take kindly to Wit's arrival, said Dan Burke, senior brokerage analyst at Gomez Advisors. "The issue that arises is if this partnership is an exclusive as an information provider (as well as) after-hours services," Burke said. The companies say the "After Hours Center" will give AOL members "information about the ability to trade in stocks after normal market hours and will promote Wit Capital's site, where members can have access to trading through their participating online brokerages." AOL members will not be able to trade initially in the after hours session. The members will be able to refresh -- and reprice -- their portfolios during the after-hours trading sessions with Wit's data. To AOL, that means more page views in the popular personal finance arena when the markets are closed. Members will also have access to Wit's order book, showing bid and offers from some electronic communications networks (ECNs). Robert Shenk, Director of AOL's Personal Finance Channel, told CBS.MarketWatch that AOL was "eager" to bring AOL members into the electronic trading-inspired new financial world. "We believe that it's time to start exposing our members to the opportunity to observe after hours pricing... and in the future, after hours trading," Shenk said. "Ultimately our goal is to have a full-fledged trading system, quote system that operates into the evening hours," he said. "AOL is largely considered a family-oriented service and hits its peak in evening hours," he said. "We've seen many people put in market orders in the evening, which stack up and don't get best execution the next morning. We think after hours trading will be a great benefit to consumers." cbs.marketwatch.com (Emily Church is the New York bureau chief for CBS MarketWatch. Frank Barnako contributed to this report.)