To: RocketMan who wrote (3133 ) 3/17/1998 9:22:00 AM From: SHGLaw Read Replies (2) | Respond to
Lacking the technical knowledge as to which engine/media co. has the best search engine, I tend to disagree as to the real significance the technology plays in the future of these companies. It had, in the not too distant past, been a battle for eyeballs that drove the value of these companies. Yhoo was way out front, and its valuation reflected that despite the absence of profit. It was clearly premised on the 'net potential for the future, which was unknown and hence boundless. Xcit bought its way to the second position, nearly bankrupting itself in the process, by acquiring anything that moved with eyeballs attached. It then parlayed that into selling real estate for some very big bucks to channel partners, creating out of nothing a huge source of capital that no one before it had tapped, and locking in that capital so no one else could get at it. Its strategy was risky but obviously successful. Lcos kept the bottom line in check, and became profitable when its brethren were spending like drunken sailors. Then comes seek.
