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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: alburk who wrote (37933)	1/13/2001 8:34:26 PM
From: alburk	Read Replies (1) \| Respond to of 54805

Mike--caveat Unless you believe GMST is currently a gorilla due to historic growth of IPG/EPG royalties? Andy

To: alburk who wrote (37933)	1/13/2001 9:07:54 PM
From: Mike Buckley	Respond to of 54805

Andrew, Several have argued that ad revenues are a godzilla game. I think I disagree with that assessment--I think ad revenues are part of GMST's gorilla prospects. What part of GMST's business do you categorize as a gorilla game. Good points. Ultimately, the distinctions are so fine that a discussion becomes potential disagreement more about semantics rather than substance. (Gawd, that was difficult for a nit-picker to admit! :) In my mind, Gemstar is a unique hybrid. I do indeed break down the business model into potential Gorillaness for its IPG revenue and potential Godzillaness for the t-commerce revenue. If the company does become a Gorilla and a Godzilla, it has the potential to become hugely powerful. Do we know of another example of the ownership of Gorilla characteristics enhancing the Godzilla-ish opportunities? I don't think so. The resulting implication is that while most Godzillas lack the controlling power of a Gorilla, this Godzilla would be fed by the controlling power of its own Gorilla characteristics. In a less rosy scenario in which Gemstar never becomes a Gorilla, if its IPR is so strong that it achieves control over its value chain though without being powered by the winds of a tornado, the relationship between control of the architecture and opportunity of the Godzilla is only slightly diminished, if at all. --Mike Buckley