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

To: Sleeper who wrote (6001)	3/5/1999 7:47:00 AM
From: gizelle otero	Read Replies (3) \| Respond to of 29970

Mark Johnson Puts @Home over AOL - Time Warner drops Roadrunner? The "Banana Wars" - Part II The following article is very interesting for one reason...The Time/Warner and AT&T relationship. Will Time/Warner drop Roadrunner in favor of @Home? If so, we can add 20.6 million potential @Home subscribers to the 1,000,000 TJ is shooting for. Profitability for @Home may come a lot sooner than Wall Street expects. Read on with enjoyment: AOL vs @Home: AOL has amassed over 16 million subscribers at last count and is creating a tremendous content destination for its customers. AOL is acquiring Netscape Communications in a stock deal currently valuing Netscape at about $7.5 billion. As part of the deal, Sun Microsystems is agreeing to distribute Netscape's business software in exchange for AOL's commitment to purchase Sun hardware. AOL has the formidable task of integrating Netscape. AOL's valuation is ahead of its self, trading at an astonishing 350 times trailing earnings and the valuation fails to take into consideration the daunting task and cost of successfully integrating Netscape. AOL is facing other challenges as well. The FTC recently ruled against forcing cable companies to open up cable lines. This will have profound implications for AOL as its 16 million customers are clamoring for high bandwidth internet connections. To combat this threat, AOL recently announced a deal to promote a competing standard to cable modems establishing an agreement with SBC Communications to develop DSL lines. The question is will DSL or cable modems become the de facto standard for high speed internet access? Enter @Home Networks. @Home is uniquely positioned to deliver high speed internet access to a large customer base. The recently completed AT&T/TCI merger effectively provides @Home with access to a number of new customers, especially given TCI is the majority shareholder in @Home. *** Even more compelling is AT&T's current agreement with Time Warner which boasts 20.6 million or about 20% of the nation's cable subscribers. ************** AOL is an incredible company with a gigantic customer base. However, ATHM is in a strong market position. Edge @Home.