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Technology Stocks : 24/7 Media, Inc. (TFSM) -- Ignore unavailable to you. Want to Upgrade?

To: md1derful who wrote (267)	10/8/1999 1:54:00 PM
From: Mark Peterson CPA	Read Replies (1) \| Respond to of 669

If the rumored interest by DCLK is true, they absolutely have to acquire TFSM. Otherwise, CMGI will, for sure. In fact, I wouldn't be a bit surprised if CMGI or ENGA was preparing a competing bid. Consolidation is occurring at a blistering pace in the industry, and the prospects of accounting for it as a pooling of interests (without the requirement to amortize goodwill as would be required by the purchase method) is all the incentive anyone needs who wants to be at the front of the industry. A proposal is in the works to do away with pooling of interests effective in 2001 or 2002. While it's not a sure thing and the FASB (Financial Accounting Standards Board) is sure to get an earful of objections to the proposal, it's an additional incentive for the consolidation to occur, sooner rather than later. Monday's a holiday, right? Columbus Day. Could never figure out why we're celebrating the discovery of some island in the Carribean. Shouldn't it be Leif Ericsson Day? So if there is no announcement after today's close, I'd be looking for one on Tuesday morning. And, obviously, all the intervening days. What I don't understand, though, is that if DCLK's price/sales ratio is about 42 - 47, TFSM's appears to be about 17 - 18 at a price of $48. CNBC states that the rumored acquisition is going to occur at 50% over Thursday's close - or at approximately $60 per share. But then they talked about an approximate 1.5B price. If TSFM has 20.23M shares outstanding, that would put the acquisition at around $74 per share. But if the acquisition is going to approach the price/sales ratio of DCLK, seems like the price needs to be at around $90+. Don't know what to think. But if an announcement occurs, I expect the stock to trade around 90-95% of the proposed acquisition price, whatever that may be, immediately after the announcement. If TFSM trades higher, it would suggest to me that there's the general expectation of a competing bid - and that could be CMGI's. Just my thoughts for the moment. Hope something comes of it. Mark