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

To: Hunt who wrote (36998)	1/10/2000 10:18:00 PM
From: David E. Taylor	Respond to of 41369

I think I've said a couple of times today that I think the combined AOL/TWX will be valued somewhere between the two, but where? That's what the coming weeks will tell us. As a couple of benchmarks (and using the closing premium of 1.21), TWX at today's close of 90 is trading at a P/E of 206, vs the media industry average of 93. At a P/E of 93, TWX trades at 41, and AOL at 33. AOL at today's close of 72.5 trades at a P/E of 223, vs the internet industry average of 378. As a pure internet company and a P/E of 378, AOL trades at 123 (around where I figured we'd be in the next few months absent this deal), and TWX at 152. There's plenty of room for debate between the media industry low of 33 and the internet high of 123 for AOL. At the 72.5 close on AOL, we're about in the middle of the range. David T.