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The Cody Blog: The Hollywood Reporter Again...

Wednesday, December 21, 2005

The Hollywood Reporter Again...

Pretty cool --- it's the lead article today at TheHollywoodReporter.com:

Billion-dollar download: Google buys 5% of AOL
By Paul Bond

Time Warner officially confirmed Tuesday what everyone in the entertainment industry probably already knew: It will sell 5% of America Online to Google for $1 billion.The decision defies the unsolicited advice of shareholder Carl Icahn, who in his noisy proxy battle with TW directors warned against such a deal....

...This week, most analysts called the real value of AOL somewhere between $8 billion and $17 billion, though some said Wall Street will recognize in short order that a rejuvenated AOL partnered with Internet search leader Google is worth far more.

The $20 billion valuation "is fair or a little low," said Cody Willard, a hedge fund manager specializing in technology investments. "This is brilliant for both of them. It takes AOL out of the closed system they had painted themselves into since 1995 and makes them relevant again."

If AOL were to be spun off in as little as two years, it could be worth $30 billion, Willard predicted. "Not that I think Time Warner will go that route, but I also wouldn't put it past them."

On another note, I'm traveling most of this week. Looking to end up in Ruidoso, NM for Xmas. Fingers crossed.


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