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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (20365)	3/29/2000 11:09:00 AM
From: KailuaBoy	Read Replies (4) \| Respond to of 29970

We're back in the content creation business?

To: ahhaha who wrote (20365)	3/29/2000 11:54:00 AM
From: deeno	Read Replies (1) \| Respond to of 29970

A more somber view Excite@Home (ATHM, $34 5/16, D-2-1-9) 00E $0.09; 01E $0.26 Comments regarding the announcement this morning involving ATHM, AT&T (T, $59 5/8, A-1-1-7), Cox Communications (COX, $45, C-1-1-9) and Comcast (CMCSK, $38 15/16, C-1-1-7). The positive for ATHM out of this announcement is that AT&T will now be in full control of the company, with over 70% of the vote and board control. In the past, in our view, ATHM has suffered from "too many cooks in the kitchen", and disagreements over business strategy. We believe that one set of management could better set and execute strategy going forward. We would note that the extension of these agreements (to 2008 in AT&T?s case and 2006 in the case of Cox and Comcast) is non-exclusive. As recently as six months ago, much of ATHM?s value was in the exclusivity agreements. Ultimately @Home will have to compete as any other ISP on the cable systems. Cox and Comcast have also been given the ability to get out of their exclusivity agreements a year earlier than originally contracted (in June of 2001), which we would view negatively. Finally, Cox and Comcast may put their ATHM shares to AT&T for a minimum of $48 per share, beginning in January of 2001. (If the ATHM price is higher, T will purchase fewer shares.) This share price applies only to Cox and Comcast; public shareholders receive no price protection. Our breakup value for ATHM remains $44 per share. We believe any operational upside from AT&T?s control of ATHM, (for instance the further development of @Home network business), will be obviated by ATHM?s grant of warrants for up to 100 million new shares to AT&T, Cox and Comcast, in connection with their extension of non-exclusive distribution agreements with Excite@Home. (H. Blodget/V. Syer)