SI
SI
discoversearch

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: Sam Matz who wrote (5811)2/26/1999 11:07:00 AM
From: BTobin  Respond to of 41369
 
That would make the buy worth $150 billion which tops any other merger by 100%. AT&T hasn't got the cash, they have to digest TCI. If stock, EPS would be degraded by half immediately and any initial move up on AT&T would be eroded. I don't think the market would accept AT&T as an Internet company so the P/E ratios of AOL's 300:1 (trailing) would not apply.



To: Sam Matz who wrote (5811)2/26/1999 12:31:00 PM
From: RTev  Read Replies (2) | Respond to of 41369
 
The market only puts these enormously high valuations on companies that are perceived as pure internet. AOL is way too expensive for AT&T since a combined company would be unlikely to share in high valuations: they'd have to pay for the high valuations and would then lose it. AT&T shareholders are more likely than AOL shareholders to consider fundamental analysis. AOL has great prospects but lousy fundamentals (from a traditional standpoint).


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News