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To: LABMAN who wrote (366)2/26/1999 4:26:00 AM
From: steve harmon - analyst  Respond to of 4337
 
IBM had a convertible note as part of its deal to sell Prodigy in 1996

--remember that Prodigy was begun by IBM and Sears

IBM had the right to convert the note to cash or shares...it chose shares, giving it a 7.2% stake

so this wasn't IBM buying into Prodigy, it was IBM getting back some of its value left on the table in 1996 when Prodigy sold to private investors