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From: TheStandardEurope.com
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Sent: Wednesday, March 07, 2001 10:16 PM
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Subject: INTELLIGENCER EUROPE: Doubts growing over Excite's future in
Europe



        
                                    | http://europe.thestandard.com | 
===================================================================== 
                    THE INDUSTRY STANDARD EUROPE'S 
                I N T E L L I G E N C E R  E U R O P E 
              This Week in the European Internet Economy 
===================================================================== 
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                        | http://europe.thestandard.com/newsletters | 

Wednesday, March  7, 2001 

TOP STORIES THIS WEEK: 
* Doubts growing over Excite's future in Europe 
* An ill-fated party 
* Autonomy to exit FTSE 100 
* Brussels plays down cipher unit security breach 

COLUMNS: 
* Jen Tracy and Luke Allnutt: Czechs bounce back 

WORTH REPEATING:  
* President Putin thinks it could be better 

THE WEEK:          
* Seven days of the Internet Economy 

BY THE NUMBERS:   
* British travel online 


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TOP STORIES 
~~~~~~~~~~~ 
Doubts growing over Excite's future in Europe 
By Bernhard Warner 
Broadband has stalled across the continent, so the US giant may pack 
up and go home 
http://tm0.com/sbct.cgi?s=110982215&i=312216&d=1151029 

An ill-fated party 
By Kristi Essick 
France has just held its annual Fête de l'Internet. Not everybody was 
in the mood to celebrate 
http://tm0.com/sbct.cgi?s=110982215&i=312216&d=1151030 

Autonomy to exit FTSE 100 
By Rick Wray 
The UK search-software business faces ejection from the index of top 
stocks after its valuation plummets 
http://tm0.com/sbct.cgi?s=110982215&i=312216&d=1151031 

Brussels plays down cipher unit security breach 
Evidence has emerged of suspicious link between EU and US intelligence 
agency 
By Boris Gröndahl 
http://tm0.com/sbct.cgi?s=110982215&i=312216&d=1151032 


OPINION 
~~~~~~~ 
Jen Tracy and Luke Allnutt: Czechs bounce back 
Globopolis peaked too early, but the time is coming for Central 
European e-commerce 
http://tm0.com/sbct.cgi?s=110982215&i=312216&d=1151033 


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WORTH REPEATING 
~~~~~~~~~~~~~~~ 
"I think it could be better" 

President Putin commenting on the official Russian presidential 
Web site during a webcast on Tuesdasy, 6 March 


---------------------------------------------------------------------- 


THE WEEK 
~~~~~~~~ 
Ya-boo-hoo: Trading of Yahoo shares was sensationally halted on 
Wednesday after the Internet portal's stock dived 6.3 per cent 
because of "news pending". An annoucement will be made by the company
at the close of trading in the US on Wednesday.

Spending plans: Pearson revealed it had actually decided to boost 
spending on the Net last year while the rest of the industry ran for 
cover. The publisher of the Financial Times spent £196 million (309 
million euros) compared with estimates of £190 million as it pushed 
for profitability at its FT.com financial news operation and consumer 
education portal The Learning Network. Pearson's 2000 profit before 
tax was £333 million (526 million euros), down 17 per cent but in line 
with analysts' projections. 

New chapter: Amazon, the worlds' biggest online retailer, and 
Wal-Mart, the world's biggest offline retailer, were reportedly in 
secret talks to form a "strategic alliance". Amazon's stock closed up 
26 per cent on Monday, adding $1 billion (1.08 billion euros) of value 
to the company. Hopes for the deal receded the following day, however, 
prompting the stock to fall. 

Fine time: AOL France's worries are far from over in regard to its 
unlimited flat-rate offer. After a French court ruled the ISP should 
pay FF250,000 (38,112 euros) to consumer group UFC-Que Choisir for 
failing to provide a quality service, AOL France took another blow. A 
Toulouse court sided with an dissatisfied subscriber, requiring AOL 
France to pay FF1,000 (152 euros) in damages. 

Psion plummets: Psion shares fell as the UK hand-held computing group 
decided to concentrate on its corporate business to the detriment of 
jobs in its consumer unit. The move was prompted by the termination of 
a venture with Motorola which would have developed a rival to the 
PalmPilot, and a pre-tax loss of £8.1 million (12.8 million euros) for 
2000. 

Value subtracted: LineOne, the UK-based ISP up for sale by owners BT 
and United Business Media, has reportedly dropped in value from 400 
million euros in November to 100-150 million euros now. Prospective 
buyers include Wanadoo, Tiscali, and T-Online. LineOne has about 
350,000 subscribers. 

Played out: Toyzone.co.uk, the Net retailer backed by entrepreneur Tom 
Hunter and TV presenter Jonathan Ross, and fronted by Matthew Freud, 
the PR guru, closed a day after eToys, the giant US start-up, filed 
for protection from its creditors. Although it had revenues, it said 
it could find no investors willing to back a consumer Net retailer. 
Toyzone was last year reputed to be worth £250 million (395 million 
euros), claiming sales of £2 million (3 million euros). 

Universal sells: Vivendi Universal looked close to selling back its 
stake in AOL France to AOL-Time Warner for around $700 million (753 
million euros). Previously Vivendi had wanted to swap its stake in AOL 
France for a stake in AOL Europe. AOL France has around 600,000 
customers compared with Wanadoo's 1.4 million. AOL has 4.6 million 
subscribers in Europe. 

Ask the experts: The market for online expertise is consolidating in 
France. On Monday, eQuesto snapped up competitor Woonoz. Both 
companies allow users to sell their knowledge on a wide range of 
subjects, but eQuesto focuses on the business sector while Woonoz was 
geared more to consumers. Woonoz, which was located in the Tocamak 
incubator, had been looking for a buyer after going into liquidation 
in February - it didn't plan to break even until 2003. 


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BY THE NUMBERS 
~~~~~~~~~~~~~~ 
The UK online travel market is set to grow from £592 million (930 
million euros) in value last year to £3.7 billion (5.8 billion euros)
by 2005, according to a report by Forrester. Flight booking will
account for some 45 per cent of those revenues in 2005.


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