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


To: Brent D. Beal who wrote (6829)1/14/1998 5:13:00 PM
From: Brian K Crawford  Read Replies (1) | Respond to of 13594
 
<<AOL is trying to play the middle man, in this case between this investment forum and the online populace. They got their start on AOL and the minute they become successful, out they go, directly to the web. I'd like to see the fee negotiations between AOL and Decision Point when it comes time to renew with AOL. AOL may very well end up paying them to stay. . .>>

I think it is more likely that Decision Point has been presented a renewal offer from AOL that has a significantly higher flat rate minimum component, and Decision Point can't afford the rents. Therefore the announced move to the web, and the next announcement will be their departure from AOL.

All in line with the business strategy announced by Case and Pittman in early 1997. They are raising the minimum rents, and planning to wind up with fewer, bigger, better financed partners on AOL.

Brian