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

To: James F. Hopkins who wrote (4695)	1/24/1999 1:47:00 AM
From: HRM	Read Replies (1) \| Respond to of 29970

Jim I think AT&T is just trying to create the equivalent of a tracking stock for its consumer internet businesses using ATHM. They seem to have figured out that in today's topsy turvy world the sum of the parts is greater than the whole. By breaking out the internet businesses into a clearly identifiable component it will be easier for the market to value it using an internet multiple. You see a similar situation with the tracking stock they will be setting up for the TCI cable business they are acquiring. Putting WorldNet and ATHM together was alluded to back in June of last year when AT&T announced the formation of the AT&T consumer services unit. It looks like that strategy is still in place but the implementation is slightly different than originally planned. I doubt this will be the last shuffling of business within the AT&T umbrella. For example, it wouldn't surprise me to see @work spun off and teamed up with that corporate internet outfit AT&T picked up from IBM recently. Armstrong seems to have a pretty good nose for maximizing shareholder value. Thus I would expect there to be some serious thought behind the recent moves. Just a guess on my part but I hope it helps. Harry