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Technology Stocks : VIAB (Viacom Class B shares) formerly CBS

VIA 30.82

-0.7%

Dec 24 12:59 PM EST

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To: Lawrence Petkus who wrote (2602)	9/25/1998 10:22:00 AM
From: MGV	Read Replies (2) of 4613

The Telenoticias deal has Karmazin and his strategy to cut costs written all over it. They just did the same thing with the hemorraghing "Eye on the People" cable programming in partnering with the Discovery Channel. I don't question the strategy. (I would like to know why the sell amounted 70% instead of 49 or 50%. They do retain board membership though it must be minority membership). They are keeping equity stakes in cable operations while freeing up cash flow to buy Karmazin's type of businesses. Remember that Karmazin wanted to buy CBS' radio assets rather than have Infinity bought by CBS. It appears to me that Karmazin's strategy is to keep within his circle of high competence while leveraging the TV, cable, and network assets to the extent they make the radio and outdoor advertising business more valuable via cross-selling. The acquisitions will be in radio, outdoor advertising and TV affiliates in that order. In sum, if you consider this move as exhibiting the imprimature of Karmazin's strategy, it is logical.

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