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

To: Logistics who wrote (10211)	4/11/1999 1:17:00 PM
From: Vendit™	Read Replies (1) \| Respond to of 41369

WHY DOESN'T AOL SCOOP UP REALNETWORKS? In my opinion, AOL would be an ideal acquirer for RealNetworks. As part of a joint distribution agreement reached last October, AOL already distributes RealPlayer on millions of copies of AOL's 4.0 CD-ROMs. RealPlayer is also available for download on AOL.com. RealNetworks also distributes a co-branded version of AOL's Instant Messenger in copies of RealPlayer. In other words, the distribution relationships are already in place for AOL to swallow RealNetworks entirely and for AOL to fully monetize the distribution channels they have created. For example, the newest update of the RealPlayer G2 software allows users of AOL Instant Messenger to send and receive links to on-demand RealAudio and RealVideo in instant messages via RealPlayer. RealNetworks also enjoys a similar distribution relationship with AOL subsidiary Netscape on its Netcenter site and Communicator browser. So how hard would it be to turn a wide-ranging partnership like this into an actual acquisition? Not very, I would assume - regardless of Rob Glaser's "we're remaining independent" statements. With a $165 billion market cap, AOL can buy whomever its little heart desires. Does anyone really think Rob Glaser would turn down AOL's golden stock if Steve Case came calling? Not a chance. An AOL acquisition of RealNetworks would give Glaser & Co. a much larger "godfather" to combat the assaults of Microsoft and would give his company a fair shot at remaining the streaming media leader. On the other side, Steve Case and AOL would gain yet another lucrative desktop portal application (similar to AOL aps like AOL Instant Messenger and ICQ) that can be integrated into his rapidly expanding universe of Web properties. AOL could also use the sales team from their recently formed Sun-AOL e-commerce solutions alliance to peddle RealNetworks' servers to customers. AOL vs. Microsoft - The battle's already been waged once, with Microsoft's MSN Internet service going up against AOL's online service, and AOL coming out the victor in the skirmish. Will Steve Case eventually take the streaming media plunge and once again go head to head with Microsoft? Microsoft's Media Player versus an AOL-owned RealNetworks RealPlayer. It's a heavyweight match-up that would leave even a windbag like Don King breathless. ragingbull.com