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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn D. Rudolph who wrote (11188)	7/22/1998 8:34:00 AM
From: llamaphlegm	Respond to of 164684

Glenn: Yes, I think that even TMF knows that. From TMF below, still think they got a boatload more acquisitions to announce. Onlyfooln asks, Why wouldn't they take Amzn stock as currency at the current price? Well, a couple reasons: - the acquired company has a duty to its shareholders and owners. They will evaluate any prospective deal with proper due dilligence. Part of that due dilligence will be to value AMZN shares. Although AMZN owners who've held the stock are year or more have no problem with AMZN at the current quote, the aquired company's directors may have a less optimistic view. It was reported that Infoseek's (SEEK) shares were valued at 1/3 its current price, when a recent acquisition deal went through. If AMZN were to do a similar stock deal, at a price well below (say 2/3 below) the current price, it might shake shareholder confidence just a bit. Even the bullish analyst at BARS has maintained his target price on AMZN at $45, which says something about AMZN's current price. - the acquired company's owners and insiders will have to wait a year or more to cash out their AMZN shares, and that may be a rather uncomfortable wait.