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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?


To: David Harker who wrote (4433)1/19/1999 1:20:00 AM
From: Mark[ox5]  Read Replies (2) | Respond to of 29970
 
Well usually the aquiring company (ATHM) goes down, and the aquired company (XCIT) goes up bigtime in a deal like this... but this is the internet sector so expect everything to shoot up. =) good job all you ATHM longs; ATHM is positioning itself nicely to match up with AOL within 2 years. Plus they have some mighty deep pockets behind them (symbol: T)

Mark :)



To: David Harker who wrote (4433)1/19/1999 2:13:00 AM
From: E. Davies  Read Replies (1) | Respond to of 29970
 
$6 Billion in stock--
Excite's shareholders would own about 30 percent of the combined company

With ATHM's current market cap of 12Billion this adds up roughly right. Its a *huge* premium over XCIT's market value of 3.5 Billion. Its too much, way too much.
ATHM is worth well more than twice XCIT. Heck ATHM is worth more than the market value of roughtly 3.5x XCIT, but I could live with that. Is XCIT worth 50% more than NSCP?
I dont think the market will accept this.
Opinions please.