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Technology Stocks : Softbank Group Corp -- Ignore unavailable to you. Want to Upgrade?

To: Jonas1 who wrote (1978)	9/30/1999 6:04:00 PM
From: Edwin S. Fujinaka	Read Replies (2) \| Respond to of 6018

Might just as well post the rest of the Bloomberg story on Softbank's comments. It is pretty amazing how much influence a few words from Softbank's Burnham has on even mighty AOL (What is ArtistDirect?): EarthLink, MindSpring Overvalued, Softbank Exec Says (Update2) EarthLink, MindSpring Overvalued, Softbank Exec Says (Update2) (Adds Burnham comments in 6th, 7th paragraphs, closing share prices.) New York, Sept. 30 (Bloomberg) -- Shares of EarthLink Network Inc., MindSpring Enterprises Inc. and other Internet service providers are overvalued, said Bill Burnham, general partner of venture capital firm Softbank Capital Partners. Softbank Corp., the venture capital firm's parent, has stakes in more than 100 companies doing business online. The business model of Internet service providers that charge customers to link to the World Wide Web is flawed because eventually all U.S. ISPs won't charge for access, he said. Instead they will rely on revenue from advertising and electronic commerce, Burnham said. America Online Inc., the biggest Internet service provider, erred when it raised membership rates recently because it gives competitors with lower prices, or those that offer free access, an opportunity to steal customers away, Burnham said. Shares of Earthlink fell 7/8 to 42 15/16. MindSpring dropped 3/16 to 27 11/16. America Online fell 4 15/16 to 104 5/16. Softbank's ADRs rose 17 to 367. The Internet eventually will adapt the U.S. broadcast-TV business model, in which viewers get free over-the-air programming, Burnham said. AOL eventually will offer free service, or charge a small amount a month for certain enhanced features, such as chat or instant messaging, he said. AOL will start to look like a TV studio today by producing and distributing content for others to broadcast over Web sites, Burnham said. Burnham said he doesn't expect the momentum in the Internet market to slow down anytime soon. ``It's a liquidity-driven bubble, but it will last a decade because it's being driven by U.S. and global demographics,' he said. Burnham also said he expects to invest $1.25 billion of his current venture capital fund by year's end. He expects to raise as much as $2 billion to start a new fund by the end of March. Softbank Capital aims to invest 20 percent to 30 percent in Internet companies which are global in reach and No. 1 in their markets. The three areas that interest the firm are e-commerce Internet companies, especially business-to-business outfits, as well as digital media, particularly music over the Internet and also just basic Internet content businesses like a GeoCities, which was bought by Yahoo! Inc. earlier this year. One company he likes in particular is Artistdirect Inc., which offers music and news online and is preparing to sell shares to the public. operates an online Artistdirect operates a network of 30 Web sites for music performers, and has signed agreements to launch channels with an additional artists. Most recently it NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min. Access More Information and Services Above ¸1999 Bloomberg L.P. All rights reserved. Terms of Service, Privacy Policy and Trademarks.