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Technology Stocks : VIAB (Viacom Class B shares) formerly CBS -- Ignore unavailable to you. Want to Upgrade?

To: John M Connolly who wrote (2437)	8/30/1998 10:56:00 AM
From: MGV	Read Replies (2) \| Respond to of 4613

John, I would expect that Karmazin and CBS have Jacor in their sights. I do not think a pursuit of Jacor by CBS is imminent. Karmazin wants to use stock to build assets through acquisition. A key reason for the re-creation of Infinity and the radio asset split was to get the stock price of teh radio assets up to a level where it could be used to acquire radio and outdoor advertising businesses at levels that would be accretive immediately. (Note - This has been one of the key reasons why WorldCom has done fabulously. It is a primary pillar of Bernie Ebber's strategy at WCOM for building shareholder value.) The only way that could be done with Jacor would be to use inflated Infinity stock to do it. That can't happen until Infinity begins trading, at the very earliest. The rumors of the Jacor interest were catalyzed by the Chancellor-Capstar deal this past week. It is clear that further industry consolidation is in the cards. Karmazin and CBS may feel heightened pressure to get deals done but, until the stock price of CBS and/or Infinity goes up to higher levels, Karmazin will be operating on the acquisition trail with one hand tied behind his back. This is why the announcement on Thursday was a simple stroke of genius. It signals an abundance of good things. Soon CBS will be able to make the kinds of deals that immediately boost share price in this market - i.e. immediately accretive ones. No one is given more of a premium value in radio than Karmazin by the street. The other aspect of the restructure that is extremely positive is that it underscores the benefit of being pure media by making the radio assets very easy to value. CBS is still somewhat of a special situation with assets that are like hidden assets in that they are not properly valued by the marketplace. This move addresses that issue. I am very bullish on CBS. Mark

To: John M Connolly who wrote (2437)	8/30/1998 10:59:00 AM
From: Patrice Gigahurtz	Read Replies (1) \| Respond to of 4613

They (JCOR), according to Barrons closed up for the week +3 1/2 to 60 3/4. They have a 52wk high of 65 3/4. So they were up for the week as was of course CBS up too + 15/16th. I can't find any California news sources supporting your posted info. Unless I missed it I didn't' see it in the LATimes. Perhaps it was just speculation ? I mean didn't MK indicate they could use the $$ from the Infinity spin to buy more radios ? Now let's talk p/e: I am not positive but if you take Barrons' .14 est for '98 woundn't that indicate at $29 1/4 a p/e of 209 ? Is that compatible with other media stocks ? Also, if you take Barrons' est for '99 of .42 could that yield (using p/e 209) a stock worth $87 ? Can this be right ? Thanks