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Technology Stocks : General Instrument Corp.'98 (GIC) -- Ignore unavailable to you. Want to Upgrade?

To: Yogi - Paul who wrote (33)	2/12/1998 10:48:00 PM
From: John F Beule	Respond to of 615

Hold on to your hats folks, this ride is just gettin' started: Technology News Thu, 12 Feb 1998, 10:43pm EST BN 2/12 America Online Plans to Team With Cable-Modem Company Soon America Online Plans to Team With Cable-Modem Company Soon Dulles, Virginia, Feb. 12 (Bloomberg) -- America Online Inc. expects to team with a cable-modem company soon to deliver Internet content and will aggressively pursue acquisitions, the company said at its annual analysts' meeting. The No. 1 online service, with 11 million members, also unveiled plans for two new services. The online service provider will deliver photos over the Internet and will organize Web pages designed by its members into areas of interest, said Nesbitt Burns analyst Abhishek Gami. The company declined to comment. AOL's plans follow a series of moves this week designed to generate revenue and boost the company's image to increase profit. An arrangement with a cable-modem company such as At Home Corp. or Time Warner Inc.'s Road Runner could cut the company's Internet access costs, as cable connections are cheaper than its current phone-line connections. ''They could encourage people to use the service a lot, and get more subscribers and advertising revenue,'' said Gami, who has a ''strong buy'' rating on the stock. AOL didn't elaborate on any acquisitions it might make, Gami said, though the company said some of the acquisitions could be dilutive to earnings. America Online said on Monday it will raise its flat fee 10 percent to $21.95 a month starting in April. It also said it's reorganizing into three groups, all reporting to AOL Networks President Robert Pittman, who was named president and chief operating officer of the parent company. Pittman, formerly head of Viacom Inc.'s MTV unit, has the task of boosting AOL's brand name and revenue from marketing and electronic commerce. CompuServe Unit AOL said it expects its CompuServe unit to lose money for the next two or three quarters. It's planning aggressive marketing to promote CompuServe's brand and attract subscribers. The services introduced today are designed to generate increased advertising revenue, which AOL has needed since it switched to flat-rate pricing in late 1996. By grouping Web pages into categories such as the sports area, AOL can then sell advertising on each Web page to ESPN, for example. And AOL's new photo service will let subscribers tell a film developer to send their pictures to their AOL e-mail account. Then, when users log on, the service will inform them, ''You have photos.'' Dulles, Virginia-based AOL rose to a record this week amid optimism that the reorganization and increase in its subscriber fee will result in steady earnings growth. The shares rose 2 1/2 to 117 today, and have risen 19 percent since Friday. --Aimee Picchi in New York through the San Francisco newsroom/jac ------------------------------------------------------------------------ c Copyright 1998, Bloomberg L.P. All Rights Reserved.