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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Tom_ who wrote (16293)	10/20/1999 7:58:00 PM
From: tajen	Read Replies (1) \| Respond to of 29970

Forget about the target price! ATHM is not getting "it" from AOL. AOL plan to invest $800M in Gateway! America Online, Gateway Agree to Market Services, PCs (Update1) 10/20/99 3:09:00 PM Source: Bloomberg News (Adds details about agreement, company comment.) Dulles, Virginia, Oct. 20 (Bloomberg) -- America Online Inc. and Gateway Inc. have forged a partnership to distribute each other's services and products, a move that involves investments in each company and AOL's purchase of a stake in Gateway's Internet access service. Quote Snapshot AOL 118.00 2.75 GTW 52.00 5.13 Enter symbol: · Symbol Lookup More from CNET Investor Quotes delayed 20+ minutes As part of the agreement, America Online, the No. 1 online service, will invest $800 million in cash and stock in Gateway, the No. 2 direct seller of personal computers, over two years. San Diego, California-based Gateway will receive $180 million, or 23 percent, of the $800 million investment in AOL stock. Gateway will make an $85 million commitment to market software and Gateway products and services over America Online's different brands. ''It's a big win for us. AOL will for the first time be loaded onto Gateway PCs,'' America Online Chairman Steve Case said. Dulles, Virginia-based America Online, which has been trying to broaden the availability of its service across several different computers and devices, will reach Gateway's 5 million customers through the new agreement. Gateway will benefit from marketing to AOL's 18 million members. AOL said it expects to take a pre-tax charge of $30 million to buy a stake in Gateway.net, Gateway's Internet service provider and online service, in the quarter that the transaction closes. Gateway said it will take a pre-tax charge of $26 million in the fourth quarter for a combination of restructuring charges, transition costs associated with the transaction and costs related to building Gateway.net. The AOL service will be featured and marketed on all Gateway personal computers. Gateway and AOL will work jointly on a co- branded online software store, which will be featured along with the Gateway.com hardware store on AOL's brands and Gateway. AOL will operate Gateway's ISP, Gateway.net, which has more than 600,000 subscribers, as a separate brand. AOL will provide all customer service and billing, network operations for Gateway.net. Internet training programs for AOL subscribers and Gateway customers will be offered through Gateway's 180 Country stores and online. The companies disclosed the alliance after U.S. markets had closed. In regular trading, America Online rose 1 1/4 to 116 1/2 and Gateway gained 5 1/8 to 52.