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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Lazlo Pierce who wrote (9855)	6/10/1998 4:46:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 18691

David, it's not clear from the press release and various new wire stories whether all of the $26.2 mil was for the 5% of CNWK or whether the $6 mil for 19% of Snap was included in that. It was clear that the total cost for 60% of Snap will be $38 mil, valuing that business at $63.3 million. Anyway, if this enables NBC to be a serious competitor in the Web portal business (and thus an impediment to Yahoo's plan to become a "global media giant"), it says a whole lot more about the risk of being long YHOO at more than $5 billion than it does to "validate... the valuations". I can't imagine why anyone would think this validates stocks like AMZN either. NBC is taking, for it, relatively small steps in its effort to figure out how to exploit the Web as a medium for news, information, entertainment and advertising. AMZN is a bookseller and, other than giving AMZN or its rivals yet another place to spend millions for ads and links, this deal says nothing about the viability of AMZN. In short, competition for YHOO and another place for AMZN to burn cash. Not exactly validation IMO. BWDIK? Regards, Bob