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

To: Rascal who wrote (33805)	11/7/1999 9:35:00 PM
From: TIP2BASE	Respond to of 41369

Re: "Somebody check my ZERO's!" Rascal, I looked at this potentially rumored deal a little different. AOL is roughly paying $25 bil for ATHM at fridays closing price. $73/share(post split)x 342 million shares athm Is this expensive? Not really, that means that AOL only needs a 13point upward move to cover the deal. 2.2 billion shares(post split) x $14/share move = +/- 25bil$ The problem I have with the deal is paying 12,500$/current subscriber. 25 bil $ / 2 mil subscribers that seems expensive IMHO. So Rascal, I would make the deal. The future number of cable subs is only going to grow. A year from now we'll probably say it was a bargain. best tip