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

To: KailuaBoy who wrote (32411)	10/7/1999 6:46:00 PM
From: FlameMe	Read Replies (1) \| Respond to of 41369

Good question! They could use some shares for acquisitions and the rest to do a stock split. Most of it would be for splits, though I imagine. Ross

To: KailuaBoy who wrote (32411)	10/7/1999 6:59:00 PM
From: JayPC	Respond to of 41369

Why would a company with 1.8 billion shares seek to increase the outstanding shares to 6 billion? Gonna buy Japan? Microsoft? P&G? What would take that many shares? Well, lets see. Here's a shopping list... 1. Excite. @home paid approx. 7.2 Billion in June. Now, its probably lost a little value, but there always seems to be a premium when buying a net company, so lets call it an even 10billion. @$100 as share of AOL, thats 100 Million shares. 2. Stock split. Its gonna happen eventually. Thats another 1.8 billion shares. so now we have 3.7billin outstanding. What should we do with the rest? Buy CBS maybe? Jay

To: KailuaBoy who wrote (32411)	10/7/1999 7:28:00 PM
From: CGarcia	Read Replies (2) \| Respond to of 41369

"Why would a company with 1.8 billion shares seek to increase the outstanding shares to 6 billion? Gonna buy Japan? Microsoft? P&G? What would take that many shares?" I would guess because they might want to buy ATHM but may have to buy that $7billion clunker called Excite as part of the deal...this would be way too expensive a deal for AOL to pull off with a mere 1.8 billion shares...Remember AOL likes to buy other companies too, it's how they continue to grow and why they are the gorilla of the internet.

To: KailuaBoy who wrote (32411)	10/7/1999 9:49:00 PM
From: Vendit™	Respond to of 41369

Re: It answers my question perfectly. Now the question for the AOL threadsters is this... Why would a company with 1.8 billion shares seek to increase the outstanding shares to 6 billion? Gonna buy Japan? Microsoft? P&G? What would take that many shares? Simple answer.......when a $20 bill (leverage) is laid beside another $20 bill (new leverage) you then have $40 (worth of leverage). I leverage business deals myself in this manor. Banks love it! You are assuming that AOL is not going to spend it's new leverage wisely so I invite you to use all of your resources and buy AOL puts and ride them into this Christmas season. Vendit