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Technology Stocks : PC Sector Round Table -- Ignore unavailable to you. Want to Upgrade?

To: appro who wrote (425)	5/27/1998 12:21:00 AM
From: Frodo Baxter	Read Replies (1) \| Respond to of 2025

re: Excite/Netscape deal... Welcome to the new paradigm world of Internet economics. To pick up your story, Excite pays Netscape $50 million. Only, Excite doesn't have $50 million. So Excite borrows the money from its sugar daddy Intuit, buying them enough time to file for a secondary offering. Considering Excite's extremely high public valuation, it only requires a million or so shares. Netscape gets some liquidity. Excite gets some exposure. Intuit gets another chit with Excite (the first was when they bought up some preferred shares the last time Excite had liquidity problems). And the bankers get their fees. Everybody wins. BWDIK, I used to be shocked by AOL's unseemly financial gimmickry. Look where they are now.