Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Broadband Wireless Access [WCII, NXLK, WCOM, satellite..] -- Ignore unavailable to you. Want to Upgrade?

To: SteveG who wrote (84)	4/22/1999 9:45:00 PM
From: silicon warrior	Read Replies (1) \| Respond to of 1860

Steve: Now that office/com has been thoroughly baked, do you think wcii could start cooking?? At least at the CLEC index level??

To: SteveG who wrote (84)	4/23/1999 10:35:00 AM
From: SteveG	Respond to of 1860

NBMO - Mike Renegar WinStar Secures the Promotional Power of CBS for its Office.com Unit - WinStar and CBS(CBS, $44 5/16) announced an agreement for CBS to acquire a 1/3 equity stake in Office.com. Office.com is a web-based service from WinStar that provides small- and medium-sized businesses with an online resource for easy-to-use tools on industry-specific news and trends, and ways to connect with the resources and partners you need. - In exchange for the equity stake, CBS will provide Office.com with $42 million worth of promotion and advertising over a six-year term. Office.com will have the ability to promote their services across the full range of CBS media properties and will also have access to the CBS sales force. - Office.com will be a broadband portal for the business-to-business marketplace. While the initial launch will mainly contain narrowband services, we expect the company to add more broadband functionality to the web site like video conferencing. - CBS should give Office.com the promotional power necessary for it to attract the online audience it needs. We are excited about this agreement and we reiterate our BUY recommendation and $54 price target. NationsBanc Montgomery Securities The Office.com site is up and running currently, however the full-scale launch is scheduled for the third quarter. Currently you can access one of the offerings of Office.com, Business Tools, through the Yahoo!Small Business site at smallbusiness.yahoo.com and through the company's own site at www.office.com/biztools. While these sites are limited at this point we expect the company to continue to add increased functionality to these sites including online video conferencing. With access to the CBS sales force Office.com will receive the advertising and promotional support necessary to drive traffic to the site. Being one of the premier media companies, CBS offers a number of cross-promotional opportunities that will provide increased visibility for Office.com. The WinStar brand will benefit from being affiliated with Office.com through all its advertising. Office.com is part of a portfolio of fast-growing Internet services that WinStar offers. Currently, the company estimates that these businesses have a run rate of $100M for 2000. We have accounted for the Internet service businesses in our model; however, with the addition of the CBS sales channel we could see some upside in advertising revenue from Office.com. In addition to the added advertising revenue opportunity, WinStar hopes it can leverage these relationships to drive increased usage over their networks. We are only witnessing the beginning of the amount of content and services that will be available. We expect this broadband content to be the driving factor in creating increased demand for broadband connectivity. By pursuing the strategy of proving content and connectivity, WinStar is seeking to benefit from the inherent linked nature of these two businesses. While this strategy could cause us to be concerned, WinStar has teamed up with a formidable group of strategic partners, (i.e. Lucent Technologies(LU, $61 7/8), Williams Co.(WMB, $44 7/8), CBS), that we believe gives them the added ability to execute on this strategy. We reiterate our BUY recommendation and $54 price target.