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

To: E. Davies who wrote (24381)	8/2/2000 12:28:59 AM
From: ahhaha	Respond to of 29970

No. The final details are yet to be determined and the merger may fail.

To: E. Davies who wrote (24381)	8/2/2000 9:59:49 AM
From: G_Barr	Respond to of 29970

Are you absolutely certain about this? It is what a reasonable person would expect but you know the games accountants play. I'm not an accountant, but it is my understanding that a less than 50% owned or controlled sub cannot be consolidated. Even if they could consolidate, I'm not sure they would want to. Chello had $7 million in revenues last year and $140 million in expenses and will be losing large amounts of money for years to come. I doubt ATHM would want to push back profitability any more in this climate. Rather, this deal should have the effect of increasing short term earnings if and when the deal closes in that ATHM will be moving their early-stage, foreign operating companies which are losing money off of their books and over to Chello. I wouldn't be surprised if this was partially why the deal was structured the way it was.