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: E. Davies who wrote (17215)	11/22/1999 1:57:00 AM
From: tajen	Read Replies (3) \| Respond to of 29970

Do the existing ATHM stock holders get free stocks in the tracking stocks? If this is truth, this will encourge the longs to hold on their positions and shorts to cover theirs. Any idea?

To: E. Davies who wrote (17215)	11/22/1999 4:54:00 AM
From: Peter Y. Hsing	Read Replies (1) \| Respond to of 29970

Could this be some sort of signaling mechanism to a potential acquirer to gain some leverage in negotiating a buy-out? I understand that there may be some restrictions over what a company can do after issuing tracking stock in order not to trigger certain taxable events. After issuing the "Excite@Home Media" tracking stock, any sale or merger may become far less unattractive for the next three years. Otherwise, I can't see the reason why such an announcement would be made so far in advance. Almost seems that ATHM is "playing a card" by pressuring a suitor back to the negotiating table--with a timetable of getting a deal done within the next 3-6 months (the tracking stock will not be issued for another 9 months--however, this may have largely to do with tax consequences and the timing of Excite's and @Home's own merger)? Any thoughts?

To: E. Davies who wrote (17215)	11/22/1999 10:09:00 AM
From: Moose	Read Replies (2) \| Respond to of 29970

What would be the point of a tracking stock otherwise? This is the question, isn't it? Simply, to value distinct wings of the company. Both are undervalued with the present combination. What's more interesting to me is why doesn't AOL have this problem? Moose

To: E. Davies who wrote (17215)	11/22/1999 11:41:00 AM
From: gpowell	Read Replies (2) \| Respond to of 29970

I agree, this indicates that excite will not be sold to AOL. We're witnessing the creation of a new business. Do you remember the open access and restructuring of ATHM discussion we had in mid-august? This tracking stock seems to accomplish some of the proposals put forth on this thread. Namely, a cleaving of the content and distribution parts of the business. If implemented, this will clear the business relationships greatly, and create a path towards self imposed open access in 2002. The open net coalition is now dead. I assume then that ATHM will become more closely coupled to the MSO's, providing distribution services, data services, and perhaps VOD. While the content side can work on becoming the broadband AOL without the specter of impending regulation.