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Re: New WBZ top of the hour ID
I don't think Mel has a lot to do with it.... Infinity stock had to be cashed in
for Viacom stock. CBS stockholders got some sort of Viacom deal too. The rumor is
that Mel and Sumner are not getting along so well..... I think the whole Viacom
thing is a an ego play..... Infinity exists as a name now only.... with Viacom
being the deal! Mel's made a tone of money and CBS might have wanted to let him
with his radio success take a whack at TV, but Sumner is showing him who the boss
is now is and who the parent company is... My guess is that Mel will have a
enough soon and take his money and move into a new project. One that he will once
again have complete control of.
> Mel is betting that the long-term value of Infinity's stock is higher than
> the market price today. My guess is he's making a good bet. Also, by
> bringing the radio division under the larger Viacom, the current problems
> that radio is having in the market will not hurt the stock price. If people
> believe in the Viacom, they will buy the stock and concerns about radio will
> have little impact on the stock price. The major problem with radio stocks
> is high debt ratios and lower than expected income growth. The debt issue as
> significant with Viacom, as it is with other radio companies. Infinity also
> has much stronger properties than some of the other companies.
> Of course, billions of dollars are made and lost on these kinds of bets. Mel
> and Sumner have made more good bets than bad over the years.
> -- Dan Billings, Bowdoinham, Maine
> In a message dated 9/23/00 12:45:57 PM Eastern Daylight Time,
> email@example.com writes:
> << Considering how
> sharply *all* radio stocks dropped this past week, this may
> not be a wise move on Karmazin's part since he's buying a falling
> stock(Infinity trades for about half of what Viacom's stock is worth).
> Infinity's stock dropped 6% in value just in one day(Wed.) as
> a report(from Merril Lynch) came out that radio growth is down a
> whopping 15% compared to last year... >>