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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Night Writer who wrote (26893)	5/31/1998 11:46:00 PM
From: Eddie Kim	Read Replies (1) \| Respond to of 97611

Interesting...however, companies like Yahoo, Infoseek, and AltaVista are not really technology companies. They are media companies. Don't expect IBM or HP to buy Infoseek, but if Time Warner does I wouldn't be surprised. Thus the question is whether Compaq really want to be in that kind of business and if its the best use of its resources. Finally, internet search engines and ISPs are very different. Yahoo offers internet service, but through MCI. If Compaq wanted to offer free internet service, it certaintly wouldn't need AltaVista. All they had to do is make an agreement with some large ISP. If Compaq wanted to get into the ISP business, it would probably better if they just bought one out. Could Compaq turn AltaVista into an AOL. It could, but think how difficult that would be. As of now, why would someone pay to visit AltaVista? The amount of money Compaq would need to expand AltaVista by adding exclusive content would cost $$$ and might never be successful. Just look at Microsoft's MSN. In order for AltaVista to be successful...it must remain free to the public and rely on advertising. Perhaps, in the future people will pay for Yahoo or AltaVista, but that's still a long, long time away. I think it would be best for both parties (Compaq's and mine) if they spun AltaVista off. After, of course, pumping up the revenue it receives.