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To: H James Morris who wrote (92681)	1/31/2000 7:35:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

So why is Audible paying $33mil over 3 years? I don't know why! Trust me. But, William might. He might also be able to tell us how Audible will be able to afford it. >In exchange for the promotion of Audible.com's content and services, Amazon.com will receive $30 million from Audible over three years, the companies said. All these investments are based on Forrester Research's revenue projections coming true. James, These amounts will never be paid. Look at Drugstore.com to pay $80+ million over a fewm years or somet6hing like that. They do not have that much money nor are they earning a profit. How about Greenlight.com? These firms are being paid by Amazon to there can be announcement to say Amazon will receiv x amount of dollars over the next so many years. There is no source for the money. It is pure hype. "Trust me" <G>

To: H James Morris who wrote (92681)	1/31/2000 8:23:00 PM
From: Glenn D. Rudolph	Respond to of 164684

James, The real store: "January 31, 2000 Online Giant Amazon.com Takes Stake in Web-Audio Firm Audible An INTERACTIVE JOURNAL News Roundup SEATTLE -- Amazon.com Inc. will buy a 5% stake in Audible Inc. for an undisclosed price and will offer the company's spoken-word online recordings at Amazon's Web site. As part of the deal, Audible will pay Amazon $30 million during the next three years for promoting Audible's products. The companies expect to close the transaction later this quarter. Audible sells recordings of books and articles read aloud, radio programs and speeches. (The Wall Street Journal is a content partner.) Audible said it expects the alliance with Amazon to boost its revenue in the second half of 2000. Audible said the agreement will make additional investments in marketing and infrastructure necessary, and Audible expects the agreement to begin adding to its per-share results during the second half of 2001. Also Monday, Audible reported a fourth-quarter loss of $5.4 million, or 21 cents a diluted share. Excluding noncash amortization related to warrants and employee stock grants, the loss was 18 cents a share in the quarter. This compares with a year-earlier loss of $2.9 million, or 40 cents a share. Revenue more than quadrupled to $420,263 from $95,950 a year ago. Audible said its customer count in the fourth quarter rose 54% from the third quarter to more than 13,300." Amazon is paying Audible first correct? Audible has a whopping gross revenue of almost .5 million dollars. Audilble manged to to lose $5.4 million on one half million in revenue. Audible is to pay Amazon $30 million over the next three years which is $10 million per year. This was the ninth moths cash flow of Audible from Jan to Sept 99: Cash flows from operating activities: Net loss............................................................................ $(8,106,567) Audible held a secondary in the summer of 99 so they had at September 99 $42 million in cash September 30, 1999. Audible was expected to lose $ $6.9 million during the most recent quarter. Taht would levev ethem with about $35 million in cash now and cash burn is expected to be $7 million Q2 of 2000. By June, there is not enough money in the Audible coffers to pay Amazon $30 million. They did a secondary only a year ago. You think they will do another stock offer this summer? This is utter nonsense. PS Edit Why are all the stakes Amazon is taking in these money losing busunesses that will be paying Amazon undisclosed? What are we hiding?