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Non-Tech : E4L, Inc. (NYSE: ETV)

ETV 13.72

-1.5%

Nov 20 4:00 PM EST

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To: John Arnopp who wrote (275)	10/20/1997 2:48:00 PM
From: Todd D. Wiener	of 1080

Check out today's announcement by HSNI: biz.yahoo.com By merging with assets from Universal, HSNI will control a lot of cable channels, especially in the domestic market. This could conceivably make it easier to reach consumers via infomercials. Of course I'm speculating that the new HSNI (to be known as USA Networks) will be well positioned to acquire NM and make use of its infomercial business. Here's my rationale for NM being acquired by USA Networks: In addition to the reasons I've given for HSNI to acquire NM (several months ago), there are other important reasons. The combined company will be able to reduce media costs typically associated with broadcasting infomercials. Because USA Networks will own several cable channels, it will be able to broadcast infomercials on its own networks, and avoid the high costs that NM currently pays. These costs have been a significant contributing factor in NM's recent profitability problems. This synergy between NM and USA Networks will make NM's operations much more profitable. Also, because NM doesn't have contracts with every channel owned by the new USA Networks, it's likely that the addition of the USA Networks viewer base will increase NM's consumer reach and its revenue potential. These 2 factors (reduced media costs & greater revenue potential) would make NM much more compatible with USA Networks. If we consider the synergies between HSNI and NM (product development, order processing and disribution), the deal makes even more sense (here is my rationale for HSNI & NM: techstocks.com ). Forget about the case for News Corp. The programming & broadcasting assets in the new USA Networks would fulfill the same role as News' cable assets. My case for CUC (soon it will be called Cendant) is here: techstocks.com Actually, in light of the new developments with HSNI, I'm inclined to believe that NM is more likely to be acquired by HSNI than by Cendant. It would be a better fit for both companies. I take no responsibility for the absence of a takeover of NM. All I can do is make reasonable suggestions. It's up to the executives of NM to read this thread ;-) Todd

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