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The Three Faces of America Online

AOL NETWORKS
Run by MTV co-founder Robert Pittman. Operates the core online service. Generates the company's subscriber fees, which should hit $1.5 billion for the year ending in June, and nearly all the advertising, merchandising, and transaction revenue, estimated at $213 million.

ANS COMMUNICATIONS
Led by former British Telecom executive Bruce Bond. Provides networking services to AOL, its largest customer, as well as to outside corporate clients. Non-AOL revenues of about $31 million likely for the year ending in June.

AOL STUDIOS
Headed by Ted Leonsis. Includes stakes in such AOL content ventures as investment hit Motley Fool and Digital Cities, which could expand to 40 cities by yearend. Also working on new content, which, for now, generates little revenue. Ultimately will get a cut of the advertising, merchandising, and transaction revenue generated by the programs. Might also get fees from distributors that carry Studios content.

SOURCE: COMPANY REPORTS, COWEN & CO.


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Updated June 15, 1997 by bwwebmaster
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