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To: Uncle Frank who wrote (2046)2/19/2000 10:49:00 PM
From: Jeff Bond  Read Replies (1) | Respond to of 6516
 
1. Does anyone know why the merger is being handled using "purchase" accounting methods, rather than the typical "pooling" method it seems is almost exclusively used?

I understand pooling offers better tax position for the combined companies, especially if "goodwill" is an issue in valuing assets of one/both of the companies.

The only drawback as I understand with pooling is that the combined company is prohibibited from effecting any stock splits for a period of 18 months after completion of the merger.

2. I'm still a little unsure on the definition of "impressions" as it pertains to advertising revenue potential.

I see calculations along the lines of 7 hours/day * 4 views/hour * 3 pages/view * 3 ads/page = so many "impressions" per year.

My questions are a few:

A. If two people are watching TV together all the time, is there now two times as many impressions, or is it still the same number of impressions?

B. Does the number of impressions factor in in any way who might be watching TV at the time? For example, the head of household may be a "better" target than a child, since he might control buying power in the house (not mine though, hehe :o)

C. Do these numbers seem high to anyone else? Man, I'd melt if I watched more than a half-hour of TV per day, I know no one in my house watches that much TV. Also, does it seem reasonable to think someone is going to use the Guide 4 times per hour. I'd go along with 2 times per hour a lot more than 4. On the other hand, I could see the number of pages higher than 3 per use, maybe quite higher if the content is grabbing.

Once again, I'm not questioning the concept in general, just wondering if others have thought about the validity or accuracy of numbers used in calulating impressions, as well as clearly defining exactly what an impression is. THank you.

Regards, JB