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

To: Kurt Goebel who wrote (3992)	10/30/1998 3:38:00 PM
From: Mark Oliver	Read Replies (2) \| Respond to of 10081

Kurt, Just spoke to Wendy at GM and asked about the Data Rover deal spin off. She cleared it up a little for me, but I'm sure you've already got the whole thing hashed out. GM will retain 49% ownership of a private company. Remaining shares will be held by the company and it's employees. GM retains ownership to Magic Cap platform and will collect royalties on Data Rover sales. Data Rover will be independent. Gm will have no financial responsibility to Data Rover. GM will also retain some preferred shares in Data Rover, but it's not public information yet. I suppose the details of these preferred shares will hold more discussion for the future. They may have a dividend that could also generate income for GM. So, it would appear in addition to not having to shift management resource to Data Rover, they will also have no losses from operations going forward. So, sometimes we wonder what drag or addition Data Rover will have. Now we can only wonder what addition it will have. I suppose they will eventually sell these shares back to Data Rover or their buyer if they are at all successful much like they did with their software based modem business. But... There will be a one time charge next quarter. The total is not yet known, but it will be about 3 million in cash and some other things. As far as the additional shares that the company can issue in return for lowering the conversion rate for GM's preferred shareholders, Wendy said this will be used to make acquisitions and form strategic partnerships. Regards, Mark