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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (30336)	10/2/1999 1:01:00 AM
From: John F. Dowd	Respond to of 74651

Market Cap of ATHM at 44/share is 16+ billion. 58% (ATT share) of which is 9.28 billion. If they pay a premium of say 20% then the price tag goes to around 11 billion so a cash deal looks likeit is out of the question as you show AOL with 1.4 billion. Now AOL has a market cap of about 120 billion but does ATT want their stock? AOL isn't in a good position to be dealing with the big boys as their only currency is their stock which has a limited market. Cash I am sure would be preferred. MSFT owns a large chunk of ATT in the form of a convertible preferred (converts into about 5% of T) which makes them a large shareholder. In fact they may have one or two seats on the board. Also wouldn't MSFT like to have their hand in ATHM? Just some thoughts. ATHM seems to have a pretty good product as I am using it presently while visiting my kids in the Bay Area. ATHM might be an interesting play in here. JFD