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


To: ChinuSFO who wrote (35426)12/16/1999 7:51:00 PM
From: Sonki  Read Replies (1) | Respond to of 41369
 
Meeker & comp. mostly : b2b. ** AOL, Microsoft hunt newbies in aisle 3

chk my priv. post on meeker.. on intel 4 wealth.

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America Online (AOL) and Microsoft (MSFT) went shopping for new
customers Thursday at Wal-Mart (WMT) and Best Buy (BBY),
respectively. They announced "strategic marketing" arrangements
with the major retailers.

In its deal, Microsoft said it would buy $200 million worth of
Best Buy stock to reward the retailer for demonstrating and
selling Microsoft's MSN Internet access and other Web products in
350 stores. "These retailers have been a bit behind the curve in
moving onto the Internet, and they see it's been a good holiday
selling season," commented Forrester Research (FORR) analyst Seema
Williams. "They are good sources of new customers for the
onliners." AOL pointed out what it sees as its market-expansion
opportunity: In 60 percent of the towns where Wal-Mart operates,
AOL said, there is no local Internet service provider.

The America Online arrangement with Wal-Mart calls for creation of
a customized version of the CompuServe service, "priced for
value-conscious consumers," according to a company news release.
Analyst Williams applauded AOL's decision not to make Internet
access free for the new customers, as Yahoo (YHOO) did in its deal
with Kmart (KM). "You have to pay the costs somehow," she said.
Williams also indicated that AOL is looking beyond the partnership
arrangements that have generated big money in payment for AOL's
ability to drive traffic. "Eventually, some of those people will
be able to draw Web visitors on their own and won't need AOL. It's
smart to keep focusing on generating revenues from subscribers,"
she told CBS.MarketWatch.com.