UKNM: Excite deal

[Alex Dale]

Re. the deal - Excite current market cap is around $2.5 billion (the

valuation obviously takes future growth into account). But the BT deal

values Excite UK at $20 million, under 1% of the parent service. Given

relative GDP, uptake of the Internet and transaction / ad spend in the

UK relative to the US, the price seems extraordinarily low for half the

future value of the UK edition of Excite.


By the way, it appears that BT have neatly managed to get Excite and

Yahoo to promote their "Click" brand (and carefully co-ordinated

everything so that they go live in the same week).


Alex


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