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To: Lizzie Tudor who wrote (64764)	9/19/2003 3:28:56 PM
From: PerryA	Read Replies (1) \| Respond to of 77400

Re Google, I simply accepted your original comment at face value. I doubt that expensing options would stop the Google IPO, but I haven't really looked into it. If they have a viable business model, accurate accounting and all, people will still want to buy into it. Regards, PerryA

To: Lizzie Tudor who wrote (64764)	9/21/2003 5:28:09 PM
From: rkral	Read Replies (1) \| Respond to of 77400

OT ... Lizzie, re "Does ebay depend on financing activity? No." Since fiscal 1997, EBAY common stock outstanding has grown from 245MM shares to 623MM shares. Of that 378MM share difference, 111MM is from conversion of preferred stock and 65MM is from initial and secondary public offerings. That leaves an additional 202MM EBAY shares that have been floated in the last 22 quarters. And you think eBay doesn't depend on financing activities? If FASB SFAS 123 fair-value expensing of options had been mandatory, eBay would have reported *$106MM net loss, instead of a $594MM net income*, over the last 18 quarters. That's $700MM in after-tax wage expense financed by existing shareholders -- and you think eBay doesn't depend on financing activities? Sigh, Ron