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To: Hal Campbell who wrote (4471)	1/13/1999 7:15:00 PM
From: killybegs	Respond to of 17679

Actually, it is my understanding the deal for the webhost was made in the midst of the summer liquidity crisis. This was when ipos and private placements were postponed. Forbes even did an article showing when companies like Excite etc would run out of cash. They took a minority stake with an option to buy a majority position. The option price is a formula based on the achievement of certain revenue milestones, not the vagaries of the stock market. My guess is that the ramp up of web activity and bandwidth becoming available made them decide to exercise the option and invest some of their cash to rapidly build out a full web based video service bureau. Just my guess.