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

To: yard_man who wrote (8536)	3/18/1998 4:31:00 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 27307

>>If it wants to be AOL remember that AOL posted losses for a decade before finally turning about 6 million dues paying subscribers into positive earnings--and it kept the access revenue for itself--which is still majority of AOL's revenue. Yahoo Online sees MCI getting the access dollars while Yahoo, ad sales on pages. Our take: not an AOL killer the way this is set up, at least not for Yahoo.<< I'm objecting to the point that AOL's subscriber revenues are that big a deal. What the Fool doesn't say is that most of those revenues pass through to WorldCom, and AOL still carries the billing and subscriber-service costs. It's misleading. AOL's subscriber revenue is the slower-growing part of its business. Advertising and E-commerce are growing much faster. That's Yahoo's model. I'm not disputing that MCI keeps the ISP revenues in their deal with Yahoo. I don't know either way. It's interesting that during that long stretch that AOL reported losses (Less than 10 years though) AOL appreciated thirty-fold. I don't think that either MCI or Yahoo think they have an "AOL-killer" service here. I think they've just leveraged their complimentary assets very well, and packaged it at low cost. MCI operates good part of the Internet backbone, and Yahoo is the largest Internet aggregator.