Take one of the largest mergers in history and you might get a good day on
Wall Street. That is what happened today as America Online and Time Warner
merged in an all-stock combination valued at $350 billion. The value of the
proposed deal and prospect for continued consolidation sent Internet issues
considerably higher.
internet.com’s Internet Stock Index jumped 49.90, or 6.03 percent, to
877.78, the Nasdaq Composite rocketed 167.05 (its larget point gain ever) to
4049.67 and the Dow Jones industrial average gained 49.64 to 11572.20.
America Online Inc. (AOL)
lost 2-1/4 to 71-1/2 and Time Warner Inc. (TWX)
soared 25-1/8 to 89-7/8. The company, to be named AOL Time Warner, with
combined revenues of over $30 billion will be able to deliver and
cross-promote its offerings across all media platforms.
Redback Networks (RBAK)
was started at Thomas Weisel Partners with a “buy” rating. Shares of the
broadband infrastructure provider rose 23-3/8 to 189-9/16.
Shares of Internet Capital
Group (ICGE)
dropped 8-1/8 to 165-3/4 after an article in Barrons claimed the company is
extremely overvalued at current levels.
Excite@Home (ATHM)
matured 1-3/16 to 40-1/8 despite Deutsche Banc Alex. Brown’s downgrade on
Monday to “neutral” from a “buy.” The firm cited added competitive pressure
from the AOL/TWX merger.
Concentric Network Corp. (CNCX)
gained 9-5/8 to 39-5/8. The Internet provider was purchased by Nextlink
Communications Inc. (NXLK)
for $2.9 billion in stock. Nextlink was down 1-7/16 to 77-1/16.
E.piphany Inc. (EPNY)
rose 24-3/4 to 181-1/4. The company, whose software analyzes Web traffic
data, reported a quarterly loss of 24 cents, down from $1 a year ago.
Globix Corp. (GBIX)
soared 26 to 94-1/8. The Web hosting firm Monday announced a 2-for-1 stock
split.
PSINet Inc. (PSIX)
jumped 11-7/16 to 72-7/16. The Internet provider Monday said it expects to
report revenues of $185 million for the quarter ended Dec. 31 and $1.1
billion for fiscal year 2000. Both numbers are higher than initial analysts’
forecasts.
Verisign Inc. (VRSN)
gained 11 to 181-3/4. The company Monday announced a new digital certificate
alliance with CheckPoint Software Technologies Ltd. (CHKP)
Vignette Corp. (VIGN)
surged 14-11/16 higher to 189-7/8. The company Monday acquired Datasage, a
provider of online marketing solutions.
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