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To: Sun Tzu who wrote (402)	2/11/1999 6:49:00 PM
From: Stuart C Hall	Respond to of 10553

ST, Background on CMGI's latest move regarding LCOS and USA Networks: bloomberg.com CMGI is telling LCOS they won't support the USA deal as announced. It says that CMGI doesn't feel there is enough value in it for LCOS shareholders and CMGI will not give their support, which should be enough to kill the deal. This is good for the 'nets as they are standing up for themselves and proclaiming their value to the Street. It is a precedent setting declaration in which the new media is teaching the old media how business is done. Diller and his cronies will not be able to walk into a Cyberbusiness and buy eyeballs for less than the market price. This confirmation sets the 'net prices foundation in the near term. LCOS holders thought NBC to be their most likely suitor. Once they found out USA had the deal they were disappointed and the stock price showed it. I don't hold LCOS, but follow them as a CMGI long because CMGI holds 20% of LCOS. Supposedly the deal Diller worked out was definitely not in the shareholders best interest but was passed by the LCOS board. Declination of the deal by CMGI has lead to huge jumps in CMGI and LCOS. There is going to be a paradigm shift within the next 2 years. By then I think we'll see a YHOO buy a traditional media company such as USA Networks. That's all I know. I hope my summary is correct. Visit the LCOS and CMGI boards for more information. EDIT: USA owns the Home Shopping Network. Combining LCOS with USA content and the HSN products would make a powerful ecommerce play. CMGI owning a portion of that would be good. However, I feel CMGI would sell their stake shortly after launch (for a huge profit). Stuart