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

To: Solid who wrote (17027)	11/15/1999 8:22:00 AM
From: Rascal	Read Replies (2) \| Respond to of 29970

Glass Steagall (bank legislation) had to finally fall because banks/insurance companies/brokers couldn't sustain themselves any longer with their 1930's business model. Now they will "eat their own" by merging, increasing customer fees (they will call it bundeling!) and firing middle management. It had to happen. Senior management just kept passing the buck (ala Allen at T)and kept their heads in the sand while they collected their options. Same concept is going on with T. They sat on huge spreads from long distance (needed it to cover gigantic-dead-suit-overhead) until the competition put it to them. Now they are going to be the "Premier-Cable-Guys" (and they want to "Bundle" too). Armstrong was forced into this strategy; it was the only one really available. But they know one revenue stream will not sustain them over longer term (even next 5 years) and the expenses associated with the build out have been poorly projected. This is why the dirty little secret about programming is raising its head. They need power over programming to dip their beaks in the e-commerce and advertising revenue. Renting pipe is a very "manufacturing-type" business model, which is OK, but they still have that gigantic overhead. If you check the T board you will see the die-hards even talking about selling.