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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?


To: Todd Daniels who wrote (6703)1/6/1998 9:27:00 PM
From: WBendus  Read Replies (1) | Respond to of 13594
 
AOL is worth $63.63 to the firm that wants it for its content and subscribers.

10,000,000 subscribers @ $500 each = $5 billion
Book value of AOl = $2.31/Shr x 103 million shares = $238 Million
Total Value = $5.238 billion / 103 million shares = $50.85
Throw in a 25% premium and you get $63.57 a share, a golden offer!

Or, spend $500 million to develop your own service, pay your subscribers $500 each in free service (2 years free), and wala! You have the same net effect.

Hmmm? What would happen in a Time Warner/US West spin off ever decided this might make sense? Internet service at 100X the speed of AOL and possibly even better content?

AOL is at least 33% over valued.

Wayde.