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

To: Seconds Out who wrote (3980)	10/28/1998 11:39:00 PM
From: Sea Otter	Read Replies (2) \| Respond to of 10081

Great move by GMGC! I've never been happy with the Datarover side of the business - very defocusing and with relatively small ROI. So this spinoff is an excellent move. Now GMGC can focus strictly on Portico. I predict the investment community will applaud this decision. I also agree about the carriers. I think we're close to a breakout. I love Markman. Platonically, of course. Sea Otter

To: Seconds Out who wrote (3980)	10/29/1998 5:57:00 AM
From: james a gustino	Read Replies (2) \| Respond to of 10081

FWIW, i do not believe that the 8-K and the datarover spin-off are directly related. the 8-K speaks in terms of gmgc's issuance of "discretionary shares" for the alternative purposes of: 1. facilitating a merger or consolidation; 2. facilitating a strategic partnership or joint venture; or 3. facilitating the acquisition of a business, product, license, etc. unless i am missing something, the spin-off of datarover would not entail gmgc's issuance of shares to datarover. the PR states: "General Magic will retain a significant minority interest in the new company and will contribute certain assets and rights in technology." at this point, i'm guessing that gmgc's contribution to datarover will not entail the issuance of shares. my theory for the 8-K language re: "discretionary shares" is that something is brewing in connection with the V-commerce alliance. another plausible theory was suggested by a poster on the yahoo board: perhaps a significant telco will be establishing a strategic partnership with gmgc and receiving some equity as part of the deal. the agreed reduction in the preferreds' fixed conversion price to $10.00 strikes me as a promising development. it suggests IMHO that the preferreds believe that whatever future development the 8-K hints at, they fully appreciate the potential significance of same and are willing to permit dilution of their shares in such event. it further suggests IMHO that the preferreds believe that such development will likely lead to the share price substantially in excess of $10.00. what other motivation is there for the agreement of the preferreds to allow dilution of their shares??? this, of course, is only my opinion and (perhaps) educated speculation. who really knows?? nonetheless, things certainly are getting more interesting, are they not????