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

To: ahhaha who wrote (23568)	7/17/2000 10:48:15 PM
From: gpowell	Read Replies (1) \| Respond to of 29970

Maybe this is a statement that ATHM wasn't cutting it in the foreign arena, so they are turning over the goods to someone who can make it go. Or perhaps ATHM and Chello have simply chosen to share the market by merging. How is this plan any worse to ATHM’s bottom line than the plan (announced last Q) to buy out their European partners and then IPO those assets?

To: ahhaha who wrote (23568)	7/17/2000 11:22:57 PM
From: E. Davies	Read Replies (3) \| Respond to of 29970

Why do you think this is so good? The way I read this is that instead of ATHM becoming an international powerhouse they become merely a shareholder in one. Doesn't inspire me. As a matter of fact I find it very disturbing. Will international subs even count as being part of ATHM anymore? It reads to me that they are planning to not use the @home brand anymore either. Ugh. If I want to own ExciteChello I can own it myself once it becomes public. No reason to buy ATHM. Eric PS- If ATHM would annouce that shareholders will get some ExciteChello it would be a different story. ATHM could explode ala COMS/PALM.

To: ahhaha who wrote (23568)	7/18/2000 12:20:19 AM
From: FR1	Read Replies (1) \| Respond to of 29970

Why do you think this is so good? Because it is better than what we had. Chello is the #2 cable provider in Europe. Unless ATHM made a deal with someone, how could ATHM expand into Europe? What were we doing in Europe that was so great? Armstrong and Malone hammered this one out with a army of lawyers and accountants. You would think that the best thing would have been to have ATHM buy Chello. There obviously was some reason they decided that was not a good idea. Perhaps they felt there was less legal/political hassle going this way. As it stands right now Malone, who is a tracking stock of T, owns Chello and T owns ATHM. You can argue with all that, since there is suppose to be separation between T and Malone. Also T just has majority voting rights in ATHM (but soon to be 74%). They must have felt that a new corporation gives enough distance that the EU will not force them to divest or block the deal. **************** The hawk may return. It sounds like Malone will have more controlling interest in the new business than ATHM. Maybe he will become the tail that wags the dog. It is also true that there might be operational problems eventually because you are going back to being a partnership instead of being a corporation. Time will tell. Having said all that, if the EU would not let ATHM buy Chello, then what other deal could you do? I bet that Armstrong and Malone knew exactly what would and would not be acceptable to the EU.