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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (2286)	10/31/1997 6:21:00 PM
From: Bill Wexler	Read Replies (1) \| Respond to of 27307

<<411 is a solid franchise. Who says the transaction isn't accretive? 411 is fertile advertising ground.>> From the latest YHOO 10-Q: [On October 20, 1997, the Company completed the acquisition of Four11 Corporation, a privately held, online communications and directory company. Under the terms of the acquisition agreement, the Company issued or reserved for issuance 1,654,099 shares of the Company's Common Stock for all outstanding Four11 shares, options, and warrants. The transaction will be recorded as a pooling of interests for accounting purposes. The Company expects to record a one-time charge of approximately $4,000,000 in the fourth quarter of 1997 relating to expenses incurred with the transaction. For the nine months ended September 30, 1997 Four11 incurred a net loss of $2,914,000. The Company is in the process of integrating Four11's technology and operations with its operations and any difficulties in successfully integrating this acquired business could have an adverse impact on the Company's short-term operating results. ] Let's see...Yahoo paid 1.6M shares for a company producing $3M in losses over the last 9 months. In addition, Yahoo will need to take an additional $4M charge in Q4. I can assure you that this transaction is not "accretive".

To: Bill Harmond who wrote (2286)	10/31/1997 6:28:00 PM
From: Bill Wexler	Read Replies (1) \| Respond to of 27307

<<Do you invest in the rear-view mirror?>> You know what's interesting? On just about every thread here and on Motley Fool - whenever concerns are raised that a stock may have become very overvalued and risky, someone always chimes in with the "rear-view mirror" remark...usually right before the stock proceeds to shed 90% of its market cap. I have no trouble paying a premium for a growth stock. Unfortunately, investors have already discounted Yahoo's possible growth so far into the future that a new investor buying in at these levels has little or no chance of seeing any return on his money...in fact I believe that same investor stands a very good chance of enormous loss. It is impossible to gauge Yahoo's growth right now because revenues are still microscopic, and the company is still not profitable. BTW the comparison to the growth in AOL's stock price from 2 to 60 is extremely disingenuous. I could argue that the Yahoo IPO was floated in a very different market than AOL's. It was extremely overpriced at IPO, and it is now a momentum monster.