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 : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: GeorgiaGN who wrote (3085)	1/21/1999 7:27:00 PM
From: Keith Howells	Respond to of 41369

GeorgiaGN - Here may be the answer to your hope that AOL does better. By Steve Gelsi, CBS MarketWatch Last Update: 6:03 PM ET Jan 21, 1999 NEW YORK (CBS.MW) -- While speculation swirls that Lycos is about to become the next Internet portal to pair up with a big media company, at least one new media executive is looking elsewhere. Derek Reisfield, former president of CBS New Media, talked with CBS MarketWatch.com about the less-hyped "big deal" he thinks may be coming: a combination between America Online (AOL) and Time Warner (TWX). So what's the logic behind an AOL and Time Warner match up? Reisfield: Everybody's talking about what's gonna happen to Lycos (in the wake of Tuesday's $6.7 billion acquisition of Excite (XCIT) by broadband Internet service provider At Home (ATHM)). Something may happen but the interesting question is could there be an AOL-Time Warner deal? Where did that idea come from? Reisfield: Out of my brain, not from any inside information. The reason I think it's interesting is because AOL is facing a change in Web access. With the advent of broadband cable modems and ADSL (a high capacity service offered by phone companies), you're talking about a different distribution system outside of dial-up. The questions is how does AOL transition from dial-up Internet service to broadband service? Who's out there for them to get broadband? Reisfield: At Home is out of the picture. Road Runner (a high-speed Internet service provider) hasn't teamed up with a portal. Media One (UMG) and Time Warner, who control Road Runner, have gotta be asking, what should we do? So both AOL and Lycos could be ripe for a broadband deal? Reisfield: Lycos should be a candidate and AOL should be a viable candidate. Time Warner would be attractive for AOL. When will this play out? In the next six months? Reisfield: I think it's a 12- to 18 month horizon. AOL has this discontinuity that they have to deal with. By teaming up with someone who owns Roadrunner and all the content assets Time Warner has, it would be very attractive for AOL.