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

To: ChinuSFO who wrote (6622)	3/14/1999 12:51:00 PM
From: Jenne	Respond to of 41369

"Shares of America Online (AOL) and Netscape Communications (NSCP) may be in the spotlight Monday on news that the U.S. Justice Department has cleared AOL's plans to acquire Netscape and enter into a strategic alliance with Sun Microsystems" Bloomberg

To: ChinuSFO who wrote (6622)	3/14/1999 2:13:00 PM
From: Sonny McWilliams	Respond to of 41369

Look at MOT's suit against Intel. Subject: Hiring people away. I am not quite sure if this would be in the same ball park. Sonny

To: ChinuSFO who wrote (6622)	3/14/1999 3:24:00 PM
From: RTev	Read Replies (1) \| Respond to of 41369

Microsoft is opening a large facility (expected to employ 1200 people) in Silicon Valley. MS made a big deal about groundbreaking for the new Valley complex, but it doesn't really represent much of a change for the outfit. It is just a consolidation of groups that have been scattered around the Valley in different offices for years (or for the months that count for years in internet time). The new campus will combine existing Microsoft groups into one set of offices. Products done in California include Powerpoint, Mac IE, Hotmail, and LinkExchange. But will they represent a threat to hire away employees? Sure. Along with every other company in the valley. AOL still has a bad name among net nerds -- it's the only big name with lower nerd value than "Microsoft". They have a ways to go before folks get over a residual embarrassment at saying "I work for AOL." But stock options are a good argument in the high-tech industry, and AOL's options would certainly be attractive to prospective employees. It will be interesting to see how AOL's Virginia Dockers-and-polo-shirts marketing culture responds to the new California shorts-and-t-shirts nerd culture they're buying.

To: ChinuSFO who wrote (6622)	3/14/1999 4:53:00 PM
From: RocketMan	Read Replies (2) \| Respond to of 41369

Rocketman, my concern is the ability of AOL to hold on to the NSCP people after they have exercised their stock options. Chinmoy, that is an excellent question, and what I assume is a key part of the transition strategy. The fact that Andresson stayed on and is chief technical officer is a big plus for keeping the technical people. But I think a bigger factor is whether they can remain challenged. I suspect that with the Sun partnership, and the AOL-anywhere paradigm, which I suspect might lead to a pico-Java-based client implementation, the technical challenges will remain. As far as employee retention and stock options, and this is not to disparage anyone with such options, I am not sure who would be more productive: an engineer who has been with the company a long time and is vested, or a new hire eager to see his options appreciate. Assuming their native talent is similar, the former has the advantage of knowing the company and the history of what has and has not worked, but may not be as motivated to the company's future growth. The latter may have the relearn a few things, but would be more motivated. So I don't know, it might be a wash.