Yahoo! in Talks With Excite@Home (Breakfast News) August 3, 1999


Tuesday, August 3, 1999

"Nobody works as hard for his money as the man who marries it."
-- Frank McKinney Hubbard

Yahoo! in Talks With Excite@Home

Yahoo! (Nasdaq: YHOO) reportedly has been holding talks with Excite@Home (Nasdaq: ATHM) regarding a possible deal in which Yahoo! would acquire Excite@Home for "some amount greater than its current market value of $17 billion," according to Business Week Online.

Even though such a deal would give Yahoo! a much-needed entry into broadband, the company reportedly doesn't want to operate an infrastructure company like Excite@Home. What's more, AT&T (Nasdaq: T), the controlling shareholder in Excite@Home, wants to maintain influence over the high-speed Internet access business.

One scenario could involve Yahoo! absorbing Excite and spinning out the @Home business that would be controlled by Yahoo! and AT&T, Business Week Online reported. Another possibility is that AT&T could absorb the @Home business and combine it with its WorldNet Internet access service.

News to Go

A Los Angeles-based start-up company,, will begin giving away 1 million Apple Computer (Nasdaq: AAPL) iMacs next month to customers who qualify for a Freemac-branded Visa card and agree to pay $19.95 a month for three years of Internet service, The New York Times reported. Freemac has partnered with Internet service provider Earthlink Network (Nasdaq: ELNK); First USA, the credit card unit of Bank One Corp. (NYSE: ONE); and Cybercash (Nasdaq: CYCH), an e-commerce company. Peter Max, the 1960s pop artist, will serve as spokesman and "chief creativity officer."

The largest shareholder of US Airways Group (NYSE: U), hedge fund group Tiger Management LLC, said it may seek a sale or merger of the airline following a year of weak stock performance. Tiger Management, which holds a 22.4% stake in the airline, said in a Schedule 13D filing that it's "currently exploring and may explore from time to time in the future a variety of alternatives designed to enhance shareholder value,'' which may include "a merger, sale, or recapitalization." (Nasdaq: PASA), which runs an online community for U.S. Hispanics, announced that it has fired Jeffrey Peterson, one of its co-founders and the company's chief technology officer. The company said it has filed a lawsuit against Peterson and one other employee, though it's unclear why exactly Peterson was fired and why he's being sued. In the meantime, the company has reappointed Bryan Ross, its former chief technology officer, to the position.

Earnings to Go

(Quarterly earnings per share versus that of the same year-earlier quarter and compared with analysts' mean estimate. Earnings exclude one-time charges and gains.)

Administaff (NYSE: ASF) -- Q2 EPS: $0.11 vs. $0.15 last year; estimate: $0.11

AMFM Inc. (NYSE: AFM) -- Q2 EPS: loss of $0.16 vs. profit of $0.01 last year; estimate: loss of $0.27

Bally Total Fitness Holding (NYSE: BFT) -- Q2 EPS: $0.34 vs. $0.08 last year; estimate: $0.33

Cigna Corp. (NYSE: CI) -- Q2 EPS: $1.22 (before gain) vs. $1.03 last year; estimate: $1.12

Global Crossing (Nasdaq: GBLX) -- Q2 EPS: loss of $0.01 vs. loss of $0.58 last year; estimate: loss of $0.01 (one analyst)

Hecla Mining (NYSE: HL) -- Q2 EPS: $0.01 vs. $0.02 (includes gain) last year; estimate: loss of $0.03

iVillage (Nasdaq: IVIL) -- Q2 EPS: loss of $0.72 vs. loss of $1.85 last year; estimate: loss of $0.77

Sensormatic Electronics (NYSE: SRM) -- fiscal Q4 EPS: $0.26 vs. $0.11 last year; estimate: $0.26

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By Yi-Hsin Chang (TMF Puck) (TMF Puck)

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