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Technology Stocks : Booking Holdings (formerly Priceline) -- Ignore unavailable to you. Want to Upgrade?

To: Tom Hua who wrote (1438)	5/23/1999 9:18:00 AM
From: Robert Rose	Respond to of 2743

<More than $5 million of last quarter's revenue (>10% total revenue) was derived from Capitol One as part of the adaptive marketing scheme. In simple words, Capitol One took part in subsidizing tickets in exchange for customers applying for Capitol One's credit cards. It was great for customers, good for Priceline, but terrible for Capitol One because the accounts were opened but unused. It cost Capitol One a small fortune. Unlike PCLN, Capitol One is not in the business of losing money. They learned a costly lesson and promptly canceled its agreement with PCLN effective May 1.> Interesting data point, Tom. I applaud you for ferreting it out. However, I would also put it in context. How many more hundreds if not thousands of deals like this can happen? And what % of them might win or fail? The best inet management are not leaving many stones of opportunity unturned: Bezos and Case come immediately to mind. Walker is showing all the signs of joining that group. Shorts beware.

To: Tom Hua who wrote (1438)	5/23/1999 5:19:00 PM
From: B. A. Marlow	Read Replies (2) \| Respond to of 2743

Wrong on credit cards and PCLN adaptive marketing, Tom. On May 1st, Capital One exercised its option to end its participation in PCLN's adaptive marketing program. Among other reasons, this outcome is not material because the deal is being replaced with a much better one. Capital One is being succeeded by Bank One's First USA, the nation's *largest* issuer of Visa cards, in a five-year adaptive marketing deal that PCLN estimates could add about $200 million to the top line. *The First USA Visa deal represents one of the very largest credit card-issuer deals ever made, online or off-line.* While we don't know the terms of the Capital One deal with PCLN or the reasons for its termination, it's apparent that PCLN was not thrilled with it and wanted out. Capital One is known for running low-end, in-house, direct-mail member acquisition programs. First USA is a higher quality issuer, far more visible, and a better partner for PCLN. You'd be more successful if you'd do some homework before jumping to conclusions. BAM P.S. PCLN's Bank One/First USA Visa press release: biz.yahoo.com