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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: levy who wrote (23240)	1/12/2001 3:55:51 PM
From: playavermont	Read Replies (3) \| Respond to of 28311

The following is from a Business Week article last February... >>"The stock is worth $200 a share -- conservatively -- based on the [partnership] agreements it has signed," says James Preissler, a first vice-president and analyst at PaineWebber. If there's such a thing as a must-buy for an investment portfolio, he adds, Infospace is it. That's because the company can do for Internet infrastructure what Microsoft did for PC operating systems. Even more than the value of its technology, the key to Infospace's success is its partnerships. It has about 2,500, including Internet portals, software companies, banks, credit-card issuers, and telephone companies. These partners market the services Infospace provides under their own brands. Infospace gets a percentage of revenue per user from each partner. But the service is sold to the end-user under the partner's name, not Infospace's. These partners include some heavy hitters: AOL, Microsoft, Lycos, American Express, and the Baby Bells, to name a few. These relationships are fast making Infospace ubiquitous. "About 87% of all Internet users go to at least four of our partnership sites," says Infospace CEO Naveen Jain. $3 BILLION A MONTH? The group of partners that Jain expects to be most important to the company's future are the 24 cellular-phone carriers, which include the Baby Bells. Infospace earns from $1 to $3 per month from each of the carriers' subscribers. "Nokia and Ericsson have both put out studies that say by 2003, there'll be 1 billion cellular users in the market," says Jain. "That means we have potentially $1 billion to $3 billion in revenues per month." By the end of this year, he expects 40% of revenues to come from wireless services, the majority of that from Europe and Japan, where cellular penetration rates are pushing past 50%<< One thing Naveen forgot to mention is that only about 350 to 400 Miilion Worldwide would be accessing the net by then... and that of the 400 Million probabaly about 15% to 35% would be through Infospace services.... In My humble estimation.... IF the industry estimates are accuarate...Though those #'s aren't bad.... Wow... looking back...how could you not by intrigued...