BUSINESSWEEK ONLINE : JANUARY 24, 2000 ISSUE
COVER STORY One Stab at Valuing the Stock Merrill Lynch & Co. analyst Henry Blodget projects the combined companies' earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2001. Different assumptions about the multiple the market will pay for EBITDA produce a target stock price of $55 to $90 a share. TOTAL SHARES IN NEW AOL TIME WARNER 4.8 billion STAND-ALONE AOL EBITDA $3.5 billion STAND-ALONE TIME WARNER EBITDA $6.5 billion GAINS FROM SYNERGY $1 billion TOTAL EBITDA $11 billion or 2.30 per share CONSERVATIVE PROJECTION OF COMBINED COMPANIES' EBITDA MULTIPLE 25 EBITDA X MULTIPLE About $55 a share AGGRESSIVE PROJECTION OF COMBINED COMPANIES' EBITDA MULTIPLE 40 EBITDA X MULTIPLE About $90 a share DATA: MERRILL LYNCH & CO. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _					RELATED ITEMS Welcome to the 21st Century COVER IMAGE: Men of the Century: Bob Pittman and Steve Case TABLE: How the Giant Fits Together Running the Numbers on the Deal TABLE: One Stab at Valuing the Stock Commentary: Is This Baby Built for Cyberspace? A Little Help from the Feds So Who's Next? ONLINE ORIGINAL: Loving AOL--Before Time Warner ONLINE ORIGINAL: AOL-Time Warner Creates "negative Synergy" INTERACT E-Mail to Business Week Online

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