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.

Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: KailuaBoy who wrote (32400)	10/7/1999 6:06:00 PM
From: Rascal	Respond to of 41369

Assumption on STOCK SPLIT PRICE is flawed. No scenario anticipates doubling shares and flat price. Let's extrapolate..... What is the posssible NEW market cap of AOL based on some of these deals?

To: KailuaBoy who wrote (32400)	10/7/1999 6:22:00 PM
From: FlameMe	Read Replies (1) \| Respond to of 41369

Actually, a stock split does nothing. What they need to do a deal are authorized shares.

To: KailuaBoy who wrote (32400)	10/7/1999 6:27:00 PM
From: JayPC	Read Replies (2) \| Respond to of 41369

Chin, IMO, stock split is not the uppermost thing with AOL. They need money for the Excite deal and the stocks will provide them the capital. One more time I ask the question. Why does everyone insist that a stock split gives AOL more money to do a deal with anyone? A stock split gives AOL twice as much stock that is worth half as much per share. You are right, it seems to me that people are confusing the fact that AOL has asked for an increase in outstanding shares with the non-fact that they are announcing a stock split. If AOL was to purchase Excite they would do so with shares. As Firenza said, this one possible reason why AOL is asking for the increase. A split does nothing for aquisitions. Having a enough outstanding shares authorized does. Regards Jay