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MindSpring splits shares
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June 25, 1998: 1:38 p.m. ET
Internet service provider's stock jumps on plans for 3-for-1 split
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NEW YORK (CNNfn) - MindSpring Enterprises Inc. shares shot up Thursday after the Internet service provider announced a three-for-one stock split.
Shares of MindSpring (MSPG) rose 13, or more than 16 percent, to 93-9/16 Thursday morning.
The Atlanta-based company, whose shares have soared nearly threefold since the start of the year, will pay the split July 24 to shareholders of record July 9.
One analyst who follows MindSpring said the company has strong fundamentals and is one of the last stand-alone ISPs, which may make it a buyout target as telecom companies look to spread out their holdings.
"If you look at the rationale behind the AT&T-TCI hookup, it has a lot to do with the Internet," said Robinson-Humphrey analyst Jeff Sadler, referring to AT&T Corp.'s multi-billion dollar purchase of cable giant Tele-Communications Inc., announced Wednesday.
"That puts [Mindspring] on the radar screen," as a possible buyout target, he added.
MindSpring is also attractive because it is among the largest independent ISPs, Sadler said. AT&T's WorldNet service is the sector leader, with about 1.2 million subscribers. MindSpring ranks seventh in membership, with 341,000 members.
MindSpring bought about 42,000 dial-up subscribers and other customer services from PSINet last September. 
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Mindspring
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