Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Rob S. who wrote (13228)	8/11/1998 3:53:00 PM
From: Rob S.	Read Replies (2) \| Respond to of 164687

Further to comparing acquisitions: Amazonegonenuts paid over $280 million in stock and options assumptions for Junglee and PlanetAll's 1.6 million subscirbers. They got some technology in the bargain but it's hard to see where that is significantly different that a lot of the stuff that other's have out on the net. Lycos must have got some "technology" along with the 10.6 million registered users. biz.yahoo.com biz.yahoo.com If you do a simple 'cost-per-user calculation' the relative cost of these acquisitions works out to: Lycos: $130MM/10MM users = $13 per customer. Amazon: $280MM/1.6MM = $175 per customer. To me that looks like a very high price to pay for the Amazon acquisitions. Either Amazon.con expects to sell an awful lot of products, some other miracle is expected to happen, or the company values the stock much lower than current speculation.