SNL Media & Communications Report

Tuesday, December 12, 2006

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Upgrades send Time Warner, DIRECTV higher

mailto:[email protected] Dave Hendrick

Time Warner Inc. shares rose 2% on Monday, Dec. 11, after being dubbed the company that “has it all” in 2007.

As a whole, media and communications stocks and broader aver-ages started the week on a high note. The Dow Jones Industrial Average gained 0.17% to close at 12,328.48, while the NASDAQ Composite Index gained 0.23% to end at 2,442.86.

Time Warner shares added 2.01% to $21.33.

The media company received a set of bullish projections from Prudential Equity Group analyst Katherine Styponias.

“We have raised our 2007 estimates to reflect what we believe will be much greater cable margin expansion than we had initially forecasted,” Styponias said in a Dec. 10 research report. “Our prior estimates had been inline with guidance for Time Warner Cable that we think is both out of date and conservative.”

The analyst expects Street estimates to increase soon, particularly

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Mergers & Acquisitions

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Report: Traditional media may take on YouTube

mailto:[email protected] Katrina Amos

Several traditional media giants may try to take on newcomer YouTube Inc.

According to a Dec. 9 report in The Wall Street Journal, News Corp.’s Fox subsidiary, Viacom Inc., CBS Corp. and NBC Universal have been discussing the possibility of creating a video Web site to compete with YouTube.

The companies would like to develop a jointly owned site where they could show video content produced by their networks, allowing them to profit off the growing Web video advertising market.

Walt Disney Co., which owns ABC, has not participated in the talks, the report said. The company wants to rely on its own Web sites and brand strength.

The media companies, which own most of the major television networks, have been in talks about building a Web video player to play video clips from across the Internet, the Journal said.

The traditional media giants have held previous talks on building

Cable versus telcos: Who will come out on top?


As bundled services become more popular and telcos begin offer-ing video services on a wider scale, industry experts question who, if anyone, will come out on top in the battle between cable and telcos.

Cable companies have shown some success in taking landlines away from telcos through a “triple-play” bundle of voice, television and high-speed Internet services. To retain customers, and pos-sibly attract some cable subscribers back to the telco side, Verizon Communications Inc. and AT&T Inc. have both launched television services via fiber-to-the-home and fiber-to-the-node, respectively.

“Right now, there is no clear winner,” said Craig Clausen, senior vice president and COO of New Paradigm Resources. “Cable has significant bandwidth coming into each home, but it was not designed for two-way communication.”

Analysts: McDowell expected to approve AT&T/BellSouth merger


After receiving official authorization to participate in the AT&T Inc./BellSouth Corp. merger, industry analysts predict FCC Commissioner Robert McDowell will not only vote but will approve the merger.

In a Dec. 11 interview, Christopher King, a Stifel Nicolaus ana-lyst, told SNL Financial, “Ultimately the merger gets approved, whether it’s the last week of this year or the first couple of weeks of January.”

Identifying the guidelines of the deal, King said, “The merger will get approved along party lines with limited concessions that the new company will have to make.”

Stanford Washington Research Group analyst Paul Glenchur also believes McDowell will vote in favor of the merger, citing an unde-termined time frame.

Based on his prior experience, Glenchur said in a Dec. 6 interview

mailto:[email protected]




Tuesday, December 12, 2006 Page 2


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if a reverse merger for Time Warner Cable Inc. occurs before the start of the new year.

Even excluding the cable division IPO, Styponias said the com-pany should see its business grow 14% in 2007, compared to 3% growth in 2006. On a year-over-year basis, the analyst predicted in 2007 Time Warner would experience 11% OIBDA growth in its AOL LLC division, 41% expansion in filmed entertainment, a 5% boost in publishing and 8% increase in networks.

Styponias said the company would post the “fastest OIBDA growth rate in the entertainment sector,” a sentiment that is “cur-rently not reflected in sell-side estimates.”

The analyst upgraded her rating on the company to “overweight” and raised her price target to $27.00 from $21.00.

The DIRECTV Group Inc. shares rose 4.98% to $25.49.

Already enjoying a bump provided by the latest round of take-over rumors, DIRECTV shares hit a 52-week high Monday after Deutsche Bank analyst Doug Mitchelson upgraded the stock on its HDTV capabilities.

Noting the greater flexibility for strategic initiatives or mergers that the company would likely enjoy if controlled by Liberty Media Corp., the analyst raised his rating to “buy” and raised his price target to $30 from $20, according to an Associated Press report.

“While Liberty will not have full control of the board of directors, it will clearly have significant influence and bring a different view-point than News Corp.,” he said, adding that the company would likely aggressively seek a viable broadband Internet offering.

In addition, although the company currently offers only 15 HD channels, Mitchelson said forthcoming increases in capacity will allow DIRECTV to offer 150 national and 1,500 local HD chan-nels.

In other news, Sprint Nextel Corp. shares gained 0.94% to end at $19.43 on Monday.

Morgan Stanley analyst Simon Flannery said in a research report that he does not anticipate Sprint turning around its sagging fortunes anytime soon. In fact, he said there remains a “material downside” in Sprint’s stock if it cannot stabilize its churn and ARPU.

“Sprint is at something of a crossroads, with recent results falling well below the expectations set at the time of the Nextel merger,” Flannery said. “Recent comments by management appear to suggest that rising handset subsidies, tightened credit standards and increas-ing prepaid competition will pressure fourth quarter and early 2007 results despite new handset launches and a re-branding campaign.”

The analyst maintained a $19.00 price target on the company’s shares and “underweight” rating.

COMPANIES REFERENCED IN THIS ARTICLE:

Sprint Nextel Corp. SClose: $19.43 +0.18 (+0.9%) Vol: 23,415,700 (136% of Avg.)

The DIRECTV Group Inc. DTVClose: $22.70 as of 12/01/06

Time Warner Inc. TWXClose: $21.33 +0.42 (+2.0%) Vol: 39,378,400 (158% of Avg.)

Report continued

a competitor to YouTube, but talks have fallen apart, the report said.

Google Inc. completed the purchase of YouTube in November.


CBS Corp. CBSClose: $31.32 +0.39 (+1.3%) Vol: 3,150,200 (79% of Avg.)

Google Inc. GOOGClose: $483.93 -0.18 (0.0%) Vol: 3,251,668 (37% of Avg.)

NBC Universal

News Corp. NWS.AClose: $21.37 -0.26 (-1.2%) Vol: 4,833,600 (81% of Avg.)

Viacom Inc. VIA.BClose: $38.20 +0.51 (+1.4%) Vol: 1,900,300 (68% of Avg.)

YouTube Inc.

Analysts continued

with SNL Financial: “McDowell is aware the merger has been pend-ing for a while and the FCC is the last agency to rule. He knows the issues well from a legal and technical standpoint. I think he will make a conscious decision and take the time to do the job well.”

While the general counsel’s approval allows the progression of merger to move forward, Paul Glist, a media and communications attorney with Cole Raywid & Braverman LLP, told SNL Financial, “This is just one more step in a long-running saga.”

Mindful of a potential setback, Glist maintained, “McDowell still has the right to recuse himself.”

On Dec. 8, McDowell, a Republican, received permission to par-ticipate in the merger proceeding from the FCC’s general counsel. The decision came a week after FCC Chairman Kevin Martin asked the general counsel to determine whether it would be in the public’s best interest if McDowell were allowed to participate in the vote.

The commission has been in a 2-2 deadlock along party lines.


AT&T Inc. T

BellSouth Corp. BLSClose: $46.24 +0.38 (+0.8%) Vol: 8,077,500 (99% of Avg.)



Cable versus telcos continued from page 1

In a Dec. 8 interview with SNL Financial, Clausen noted that, over time, cable companies have made it possible to provide two-way communications, video-on-demand and high-definition televi-sion services; however, Clausen said its Achilles heel has been its lack of customer care.

“They know how to get customers but fall short on customer care,” Clausen said.

Clausen also said that cable companies lag behind telcos in deployment in urban areas. “[The cable companies] never deployed significant networks in downtown areas, and now they’re trying to in a hodge-podge way,” he said.

Through this oversight on the cable companies’ part, telcos have been able to excel beyond their competitors when it comes to busi-ness customers. “Telcos have an excellent network that reaches every house and nearly every business,” Clausen said, explain-ing that the group has found ways around its limited copper and expensive fiber deployments through DSL and similar technology to increase bandwidth.

Stifel Nicolaus analyst Christopher King told SNL Financial in a Dec. 11 interview that he, too, is not sure either side in the cable-versus-telco battle will have a “convincing win in the long run.”

King said it remains “questionable” whether the telcos would catch up to the current cable plan. “I wonder how they will differ-entiate themselves from a product standpoint, regarding the triple play,” he said.

At the end of the day, King believes the telcos will have to depend on something other than price to take market share. “While it may

work in the near term from a market share standpoint, in order to achieve any level of profitability, they’re going to need to differenti-ate their product,” King said.

One way to differentiate themselves is through the “quadruple play,” by adding wireless service.

At this point, “We give the nod to telcos,” Clausen said, noting the quadruple play gives the segment a “serious advantage.”

Offering a different perspective, King said wireless was not a “cru-cial” component the bundle.

“Cable companies will be able to compete just fine without having a wireless operation of their own because people are used to hav-ing a wireless carrier that’s not connected to their voice telephony product or cable product,” King added.

Cable companies have already made their try at wireless through mobile virtual network operators with wireless providers such as Sprint Nextel Corp.

But the MVNO route could be a slight disadvantage to cable. “Being a reseller is difficult to make money. You’re just playing on the margin, and that’s something that’s going to hurt cable,” Clausen said.


AT&T Inc. TClose: $35.18 +0.21 (+0.6%) Vol: 16,127,600 (92% of Avg.)

Verizon Communications Inc. VZClose: $35.69 +0.38 (+1.1%) Vol: 10,676,800 (93% of Avg.)

Mergers & AcquisitionsU p d a t e s

Gannett Co. Inc. GCIClose: $60.22 +0.26 (+0.4%) Vol: 756,200Gannett Co. Inc. debunked rumors that the company was looking to sell its British newspaper unit, Newsquest.

In a Dec. 11 statement, Gannett said: “There is no truth to the report

in London’s Sunday Express that Gannett is considering selling its U.K. subsidiary Newsquest. Newsquest is a valuable part of the Gannett company.”

The Sunday Express reported that Gannett was planning to review its British unit, which could possibly lead to a sale of Newsquest valued at 1.5 billion British pounds.

News StoriesC o m m u n i c a t i o n s

AT&T Inc. TClose: $35.18 +0.21 (+0.6%) Vol: 16,127,600 (92% of Avg.)AT&T Inc. said Dec. 11 that it plans to open two new Internet data centers in Shanghai, China, and in Oak Brook, Ill., outside of Chicago.

According to a news release, the centers expand AT&T’s 1.8 million-square-foot global Internet data center footprint. The company said the new centers will help it further accelerate its position in the hosting business worldwide.

The new facilities bring the total number of AT&T Internet data cen-ters to 32, including 17 data centers within the United States, six in Europe and nine in the Asia/Pacific region.

Cingular Wireless LLC SBC.GLCingular Wireless LLC, a joint venture of AT&T Inc. and BellSouth Corp., said Dec. 11 that it added seven new cell sites to enhance its coverage in the western Carolinas.

According to a news release, these new cell sites are part of

Cingular’s $385 million investment in North Carolina and South Carolina, which includes building more than 300 new cell sites.

Comcast Corp. CMCSAClose: $42.69 +0.58 (+1.4%) Vol: 9,503,540 (90% of Avg.)Comcast Corp. said Dec. 11 that it named Tony Werner as the chief technology officer of Comcast Cable, effective at the end of December.

According to a news release, Werner, who succeeds David Fellows, will be responsible for developing and guiding the company’s technology strategy and evolving network architecture, including supporting next-generation consumer systems and technologies, infrastructure and engineering, network integration and manage-ment tools and technical standards.

Werner currently serves as senior vice president and chief technol-ogy officer for Liberty Global Inc.

Embarq Corp. EQClose: $50.91 -0.19 (-0.4%) Vol: 693,800Embarq Corp. on Dec. 11 said its high-speed Internet service had surpassed the one million subscriber mark.



In a news release, the company said the milestone comes seven years after the company first began rolling out high-speed Internet services, and less than one year since the company spun-off from what is now Sprint Nextel Corp.

The company ended the third-quarter with 46% more subscribers than it had at the close of the third quarter 2005.

Embarq spokesman Keith Mitchell told SNL Financial on Dec. 11 that the growth rate of high-speed Internet offerings at the company “exceeded expectations.”

The spokesman said Embarq had historically relied on traditional voice as its primary product offering, but noted that “while wireline voice is declining, we’re going to be replacing that revenue with things like high-speed Internet.”

Although the Internet sector contributed only approximately $106 million toward the company’s total operating revenues of $1.48 bil-lion in the third quarter, the sector also demonstrated the strongest year-over-year growth, increasing 25%.

Mitchell said that while he could not predict whether such growth rates would continue, he said the company was “very focused” on rolling out DSL to as much of the company’s footprint as possible.

The company, which currently offers high-speed Internet in speeds of between 1.5 and 5 mbps, said it soon will begin to launch service capable of delivering speeds up to 10 mbps in selected markets.

“We can deploy 10 megabits over our existing copper infrastructure to the home,” Mitchell said. “It has to do with the technology that is in the network and the central offices.”

Mitchell said the company would deploy fiber-optic lines “within the guts of the network as it is appropriate” but had no plans for fiber to the “node, the curb or the home” at present.

Dave Hendrickmailto:[email protected]

Equinix Inc. EQIXClose: $79.34 +1.39 (+1.8%) Vol: 741,797 (169% of Avg.)Equinix Inc. said Dec. 11 that it entered into an agreement with DR Fortress LLC for the sale of the company’s Honolulu Internet Business Exchange center.

Financial terms of the transaction were not disclosed.

In a news release, the company said the move will allow it to focus on more strategic markets, such as New York City, Chicago and Washington, D.C., where it will be opening centers in 2007.

Hungarian Telephone & Cable Corp. HTCClose: $14.26 as of 12/08/06Hungarian Telephone & Cable Corp.’s board of directors elected Jesper Eriksen to replace Peter Thomsen as a director on the board of directors.

Thomsen resigned from the board effective Dec. 6.

According to a Dec. 11 news release, Eriksen serves as president of TDC Mobile International A/S, a wholly owned subsidiary of TDC A/S, the majority shareholder of Hungarian Telephone.

The board elected Eriksen as its chairman.

In addition, Kim Frimer and Christian Moeller resigned from the board

of directors and were replaced by Carsten Revsbech and Henrik Scheinemann to replace the resigned members. Both Revsbech and Scheinemann hold executive positions at TDC Mobile International.

Revsbech was elected as the vice chairman of the board.

SAVVIS Inc. SVVSClose: $33.83 +0.59 (+1.8%) Vol: 409,259 (192% of Avg.)SAVVIS Inc. said Dec. 11 that it promoted Richard Warley to the posi-tion of managing director international, where he will oversee the company’s operations and growth initiatives outside of the United States.

The company said the move represents its commitment to being a global provider of IT infrastructure services.

Warley previously served as managing director for SAVVIS EMEA, where he focused on the company’s European presence.

In a news release, the company said it also appointed Aye See Tan as managing director of Asia Pacific.

Verizon Communications Inc. VZClose: $35.69 +0.38 (+1.1%) Vol: 10,676,800 (93% of Avg.)Verizon Communications Inc. said Dec. 11 that Lawrence Babbio Jr., the company’s vice chairman and president, plans to retire from the company by the end of the first quarter of 2007.

In a news release, the company said Babbio serves the head of its Verizon Business and Verizon Telecom units and as a board mem-ber at Verizon Wireless Inc., a joint venture between Verizon and Vodafone Group plc.

The company said Babbio had worked for Verizon and its predeces-sor companies for 41 years, beginning his career in 1966 with New Jersey Bell Telephone.

“My decision comes at a time when we have successfully positioned Verizon to extend its industry-leading position in both the wireless and wireline businesses,” Babbio said, adding that it was “the right time to transition to the next generation of leadership.”

The company said it would announce transition plans in the coming weeks.

M e d i a & E n t e r t a i n m e n t

Clear Channel Communications Inc. CCUClose: $35.43 +0.10 (+0.3%) Vol: 2,767,700 (82% of Avg.)Clear Channel Radio, a division of Clear Channel Communications Inc., said Dec. 11 that its online division expanded its exclusive and on-demand content, adding lifestyle programs aggregating a wide range of related content elements.

According to a news release, the first two programs offered on-demand serve auto racing fans and the gay/lesbian community.

“Race Day,” launching in early January to coincide with the start of the NASCAR racing season, is expected to be available across the country on more than 500 radio station Web sites; “Pride on Demand” launched on Nov. 28 in 12 markets, including Miami, New York City, Chicago and Honolulu.

Both programs offer the company with new opportunities for national advertisers and local sponsors to reach Clear Channel’s more than 9 million unique monthly visitors to its Web sites.

News Stories continued




John Wiley & Sons JWAClose: $39.06 -0.15 (-0.4%) Vol: 184,700 (133% of Avg.)John Wiley & Sons said Dec. 11 that Richard Hochhauser and Eduardo Menasce were elected to the company’s board, effective Dec. 13.

According to a news release, Hochhauser has served as president and CEO of Harte-Hanks Inc. since 2002. Menasce recently retired as president of enterprise solutions group of Verizon Communications Inc.

N e w M e d i a

CNET Networks Inc. CNETClose: $9.61 -0.02 (-0.2%) Vol: 1,207,004 (64% of Avg.)CNET Networks Inc. said Dec. 11 that Barry Briggs, the company’s president and COO, decided to resign from his position with the company to pursue personal and other business interests.

Briggs’ resignation is effective as of Jan. 12, 2007.

According to a news release, the company does not have plans to replace the position at this time.

Yahoo! Inc. YHOOClose: $26.49 +0.15 (+0.6%) Vol: 12,893,064 (55% of Avg.)Yahoo! Inc. entered into a separation agreement with its COO Daniel Rosenweig, whose resignation was announced under the company’s plan of restructuring.

According to a Form 8-K filed with the SEC on Dec. 8, Rosenweig’s resignation will be effective March 31, 2007.

Yahoo will pay Rosensweig a lump sum payment equal to his base salary for the period from the separation date through Dec. 31, 2007, as well as a $900,000 annual bonus for 2006.

The separation agreement also expressly forbids Rosensweig from doing business with either Google Inc. or Microsoft Corp. for three years from his date of departure at Yahoo, with the penalty being a loss of the ability to exercise his stock options.

Dave Hendrickmailto:[email protected]

News Stories continued

Industry NewsDow Jones Indexes makes component changes to Dow Jones China IndexesDow Jones Indexes said Dec. 11 that it made changes in the compo-sition of Dow Jones China Index Series (Dow-China Indexes), after the conclusion of a regular quarterly review.

The component changes in Dow Jones China Total Market (Dow-China Total Market), Dow Jones Shanghai (Dow-Shanghai), Dow Jones Shenzhen (Dow-Shenzhen), and Dow Jones CBN China 600 indexes will be effective on Dec. 18.

With 25 additions and 26 deletions, the number of components in the Dow-China Total Market Index will decrease to 1135 from 1136 with 1069 A-shares and 66 B-shares. The Dow-China Total Market Index reflects approximately 95% of the free-float market capitaliza-tion for both the Shanghai and Shenzhen markets.

The number of components in the Dow-Shanghai Index will decrease to 705 from 707, with 11 additions and 13 deletions, while the num-ber of components in the Dow-Shenzhen Index will increase to 430 from 429 components. The Dow-Shanghai and Dow-Shenzhen indexes represent approximately 95% of the free-float market capi-talization of their respective markets.

In the Dow Jones CBN China 600 Index, which reflects roughly 80% of China’s free-float market capitalization, 29 components will be replaced.

Dow Jones Indexes also completed the regular semiannual review for the Dow Jones CBN China 600 Sector Blue-Chip Indexes, which were launched on Sept. 8, 2005, as subsets of the Dow Jones CBN China 600 Index.

Company additions to and deletions from the Dow Jones China Indexes, do not, in any way, reflect an opinion on the investment merits of the company.

Dow Jones Indexes is a part of Dow Jones & Co.

Jefferies Group unit names equities analystEquities analyst Horacio Zambrano joined Jefferies Group Inc. unit Jefferies & Co., Reuters reported Dec. 8, citing Zambrano.

According to the news agency, Zambrano will cover software mak-ers Adobe Systems Inc., Autodesk Inc., Macrovision Corp., Parametric Technology Corp., RealNetworks Inc. and SAP AG.

Zambrano previously covered security technology for Wedbush Morgan Securities Inc.

Company Meetings

NONE

Dividend Announcements

NONE




Analyst CoverageR e i t e r a t i o n s

4Kids Entertainment Inc. KDEClose: $17.83 -0.12 (-0.7%) Vol: 56,100 (58% of Avg.)Ferris Baker Watts Inc. analyst Liam Burke reiterated his investment opinion of 4Kids Entertainment Inc. at “buy,” with a price target of $22.

The analyst wrote in a research report: “In an effort to change its business model and gain improved economics from its creative abil-

ity, 4Kids has announced the formation of two subsidiaries to sup-port the launch of its new Chaotic property. TC Digital Games, LLC is a trading card company that will produce and distribute trading cards initially to support its new Chaotic property, which features unique codes that are used in conjunction with an interactive online game. TC Websites is an online multi-platform game company that will initially handle the online game operations of Chaotic. Both platforms are capable of supporting similar gaming concepts.”

SNL summarizes all equity research we receive about companies in the industries we cover.If you are an equity research analyst covering media & communications and would like your research included in this coverage, please add

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Analyst EstimatesPrice/

Date of Fiscal EPS Est. ($) Cons. # of Est.Company (Ticker) Type Broker Analyst Revision Year From To ($) Ests. EPS(x)

REVISIONS�Amer Tower Corp (AMT) CO Banc of Am Secs Barden 12/08/06 2006 0.07 0.06 0.08 14 NM �Cablevision Sys (CVC) CO Deutsche Bank Secs Mitchelson 12/07/06 2006 -0.62 -0.41 -0.53 16 NM �Cablevision Sys (CVC) CO Deutsche Bank Secs Mitchelson 12/07/06 2010 2.32 2.42 2.24 5 11.7 �Citizens Comm Co (CZN) CO Merrill Lynch Janazzo 12/07/06 2006 0.65 0.63 0.67 13 22.4 �DIRECTV Group (DTV) CO Kaufman Brothers Mitchell 12/08/06 2008 1.76 1.56 1.48 10 14.6 �Echostar Comm Corp (DISH) CO Sanders Morris Mather 12/08/06 2006 1.35 1.33 1.36 12 28.2 �Echostar Comm Corp (DISH) CO Sanders Morris Mather 12/08/06 2007 1.73 1.72 1.94 13 21.8 �Gannett (GCI) ME Citigroup Research Bird 12/08/06 2006 4.94 4.89 4.89 14 12.3 �Gannett (GCI) ME Citigroup Research Bird 12/08/06 2007 4.58 4.62 4.78 14 13.0 �Gannett (GCI) ME Citigroup Research Bird 12/08/06 2008 4.99 5.03 5.18 3 12.0

�Gannett (GCI) ME Merrill Lynch Fine 12/08/06 2006 4.91 4.90 4.89 14 12.3 �Journal Register (JRC) ME Merrill Lynch Fleck 12/08/06 2007 0.90 0.84 0.86 4 8.9 �Meredith Corp (MDP) ME J.P. Morgan Crockett 12/07/06 2007 3.29 3.31 3.30 6 16.7 �Meredith Corp (MDP) ME J.P. Morgan Crockett 12/07/06 2008 3.38 3.39 3.53 6 16.3 �Meredith Corp (MDP) ME J.P. Morgan Crockett 12/07/06 2009 3.57 3.59 3.90 3 15.4 �Viacom (VIA.B) ME Sanders Morris Miller 12/08/06 2006 2.01 2.00 2.00 15 19.1 �Viacom (VIA.B) ME Sanders Morris Miller 12/08/06 2007 2.20 2.26 2.27 15 16.9 �Website Pros Inc (WSPI) NM Stephens Evans 12/08/06 2007 0.46 0.54 0.55 5 16.2 �Website Pros Inc (WSPI) NM Stephens Evans 12/08/06 2008 0.49 0.55 0.55 1 15.9

Revision Key � Below 5% increase � Below 5% decrease � 5% or more increase � 5% or more decreasePrice/

Date of Fiscal EPS Est. Cons. # of Est.Company (Ticker) Type Broker Analyst Coverage Year ($) ($) Ests. EPS(x)

INITIAL ESTIMATESCincinnati Bell (CBB) CO AG Edwards Inc Custer 12/08/06 2008 0.39 0.38 4 12.6Comcast Corp (CMCSA) CO AG Edwards Inc Custer 12/08/06 2008 1.79 1.78 10 23.8Interpublic Grp (IPG) ME Banc of Am Secs Jacoby 12/07/06 2008 0.44 0.66 6 26.6Lamar Advertising (LAMR) ME Jefferies & Co Brenner 12/07/06 2009 0.46 1.18 4 137.4Website Pros Inc (WSPI) NM ThinkEquity Ptnrs Swanson 12/08/06 2007 0.54 0.55 5 16.2Note: Information is provided by Thomson First Call. All estimates represent diluted EPS from continuing operations. SNL Financial LC makes no representations concerning the accuracy of the information.





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SNLFinancial

MEDIA & COMMUNICATIONS REPORT TM

Analyst Recommendations RecommendationCompany (Ticker) Type Broker Analyst Date From To Source

!!4Kids Ent (KDE) ME Ferris Baker Watts Burke 12/11/06 Strong Buy SNL!!Gannett (GCI) ME Deutsche Bank Secs Ginocchio 12/08/06 Hold First Call�Time Warner Inc (TWX) ME Prudential Equity Styponias 12/10/06 Hold Buy SNL

Recommendation Key � Raised � Lowered � Initial !! Reiterate

Note: SNL makes no representations about the accuracy of First Call-sourced recommendations. All recommendations use standardized ratings of Strong Buy, Buy, Hold, Underperform and Sell. Actual text provided by the brokers may differ.

Registration Statements

CBS Corp. CBSClose: $31.32 +0.39 (+1.3%) Vol: 3,150,200 (79% of Avg.)Filed: 12/11/06 Form: S-8Registrant filed a registration statement for up to $100 million of deferred compensation obligations offered through its excess 401(k) plan, the excess 401(k) plan for designated senior executives, its bonus deferral plan and its bonus deferral plan for designated senior executives.

Sirius Satellite Radio Inc. SIRIClose: $3.81 +0.02 (+0.5%) Vol: 28,538,016 (66% of Avg.)Filed: 12/08/06 Form: S-8Registrant filed a registration statement for up to 40 million shares of common stock in an offering valued at $157 million offered through its 401(k) savings plan and amended and restated 2003 long-term stock incentive plan.

Current Event Reports (Forms 8-K and 8-A)

Clear Channel Communications Inc. CCUClose: $35.43 +0.10 (+0.3%) Vol: 2,767,700 (82% of Avg.)Filed: 12/11/06 Form: 8-KRegistrant reported that it established Dec. 18 as the record date for shareholders voting at a special meeting to approve the agreement and plan of merger dated Nov. 16 with BT Triple Crown Merger Co. Inc., B Triple Crown Finco LLC and T Triple Crown Finco LLC.

CNET Networks Inc. CNETClose: $9.61 -0.02 (-0.2%) Vol: 1,207,004 (64% of Avg.)Filed: 12/11/06 Form: 8-KOn Dec. 11, registrant announced the resignation of President and COO Barry Briggs, effective Jan. 12.

Comcast Corp. CMCSAClose: $42.69 +0.58 (+1.4%) Vol: 9,503,540 (90% of Avg.)Filed: 12/11/06 Form: 8-KRegistrant filed certain financial statements from its quarterly report for the six months ended June 30, formatted in XBRL.

Comcast Corp. CMCSAFiled: 12/11/06 Form: 8-KRegistrant filed certain financial statements from its quarterly report for the three months ended March 31, formatted in XBRL.

Comcast Corp. CMCSAFiled: 12/11/06 Form: 8-KRegistrant filed certain financial statements from its quarterly report for the nine months ended Sept. 30, formatted in XBRL.

Crown Castle International Corp. CCIClose: $34.28 +0.02 (+0.1%) Vol: 763,900 (60% of Avg.)Filed: 12/08/06 Form: 8-KRegistrant reported that Michael Ramke was appointed as president (interim) of Modeo, effective Jan. 1, 2007.

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Emmis Communications Corp. EMMSClose: $8.19 -0.10 (-1.2%) Vol: 288,910 (48% of Avg.)Filed: 12/11/06 Form: 8-KRegistrant reported that on Dec. 5 it adopted a bonus plan for Patrick Walsh and that Jeffrey Smulyan reduced his base salary. Registrant also reported that it amended its bylaws. The amended and restated bylaws were included by exhibit.

Fuego Entertainment Inc. FUGOClose: $0.14 -0.01 (-6.7%) Vol: 232,600Filed: 12/11/06 Form: 8-K/AOn Aug. 24, registrant announced that it has issued a letter of intent to acquire 14 television stations.

Fuego Entertainment Inc. FUGOFiled: 12/11/06 Form: 8-K/ARegistrant filed an amendment to the current report on Form 8-K to provide additional information relating to its acquisition of 14 television stations.

Hungarian Telephone & Cable Corp. HTCClose: $14.26 as of 12/08/06Filed: 12/11/06 Form: 8-KOn Dec. 11, registrant announced that it elected Jesper Theill Eriksen to replace Peter Thomsen as a director.

IDT Corp. IDTClose: $12.97 +0.16 (+1.2%) Vol: 278,700 (73% of Avg.)Filed: 12/11/06 Form: 8-KRegistrant reported that on Nov. 7 director Jeane Kirkpatrick died and on Dec. 8 director Ira Greenstein resigned.

InfoSearch Media Inc. ISHMClose: $0.18 -0.02 (-7.9%) Vol: 357,200 (145% of Avg.)Filed: 12/11/06 Form: 8-KRegistrant reported that on Dec. 5 it entered into an amendment to its employment agreement with Steve Lazuka. The amendment was included by exhibit.

InfoSpace Inc. INSPClose: $20.19 +0.10 (+0.5%) Vol: 315,893 (57% of Avg.)Filed: 12/11/06 Form: 8-KRegistrant reported that on Dec. 5 its board adopted an amend-ment to its flexible stock incentive plan and approved grants under the plan. The restated 1996 flexible stock incentive plan and its form of restated 1996 flexible stock incentive plan notice of grant of restricted stock units and restricted stock unit agreement were included by exhibit.

SureWest Communications SURWClose: $25.74 +0.87 (+3.5%) Vol: 43,272 (138% of Avg.)Filed: 12/11/06 Form: 8-KRegistrant reported that on Dec. 7 its board of directors approved the base salaries in 2007 for certain management executives.

SWMX Inc. SWMXClose: $2.15 (No change) Vol: 1,100Filed: 12/11/06 Form: 8-KRegistrant reported that on Dec. 5 Charles Omphalius resigned from its board of directors.

Warwick Valley Telephone Co. WWVYClose: $18.65 +0.10 (+0.5%) Vol: 14,175 (163% of Avg.)Filed: 12/11/06 Form: 8-KOn Dec. 11, registrant announced that Herbert Gareiss Jr. was retir-ing as CEO and president, effective Jan. 31.

Watchit Media Inc. WMDAClose: $0.05 -0.01 (-15.0%) Vol: 4,200 (11% of Avg.)Filed: 12/08/06 Form: 8-KOn Oct. 12, registrant announced that it entered into an agree-ment to license its Las Vegas lifestyle television programming to MediaZone. The television program licensing agreement was included by exhibit.

Website Pros Inc. WSPIClose: $8.74 +0.24 (+2.8%) Vol: 122,045 (96% of Avg.)Filed: 12/11/06 Form: 8-K/ARegistrant amended its Form 8-K to file financial information, includ-ing pro formas, in connection with its acquisition of 1Shoppingcart.com Canada Corp.

Website Pros Inc. WSPIFiled: 12/11/06 Form: 8-K/ARegistrant amended its Form 8-K to file financial information, includ-ing pro formas, in connection with its acquisition of Renex Inc., which changed its name on Oct. 3 to Compass Capital Ltd.

Yahoo! Inc. YHOOClose: $26.49 +0.15 (+0.6%) Vol: 12,893,064 (55% of Avg.)Filed: 12/08/06 Form: 8-KRegistrant reported that on Dec. 8 it entered into a separation agreement with Daniel Rosenweig, effective March 31. The separa-tion agreement was included by exhibit.

Industry ConferencesFor the period 12/12/06 to 01/11/07Name Dates Location Phone

UBS Enterprise Technology Forum 12/13/06 New York, NY (212) 821-3000CES 2007 International 01/08/07-01/11/07 Las Vegas, NV —pulvermedia Consumer VoIP Summit 01/08/07-01/11/07 Las Vegas, NV —Needham & Co. 9th Annual Growth Conference 01/09/07-01/12/07 New York, NY (212) 371-8300ICR 9th Annual XChange 01/10/07-01/11/07 Dana Point, CA (617) 217-2084NTCA Wireless Symposium 2007 01/10/07-01/12/07 Dallas, TX (703) 351-2084

To submit additions or corrections regarding industry conferences, please contact Dottie Risdon at (434) 951-7477, or e-mail [email protected].

Current Event Reports (Forms 8-K and 8-A) continued



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Interest Rate Scoreboard Monday Friday Month Prior Year 12/11/06 12/08/06 Ago Yr End Ago

3-Month T-Bill (BEY) 4.93 4.97 5.10 4.08 3.94 6-Month T-Bill (BEY) 5.07 5.08 5.16 4.37 4.27 1-Year T-Bill (BEY) 4.94 4.95 5.01 4.38 4.33 2-Year T-Note 4.67 4.68 4.73 4.41 4.43 3-Year T-Note 4.55 4.57 4.63 4.37 4.43 5-Year T-Note 4.50 4.53 4.57 4.35 4.44 10-Year T-Note 4.52 4.56 4.59 4.39 4.54 30-Year T-Bond 4.63 4.66 4.69 4.51 4.72 Federal Funds 5.25 5.25 5.23 4.09 4.16 Prime Rate 8.25 8.25 8.25 7.25 7.00 30-Day LIBOR 5.35 5.35 5.32 4.39 4.36 3-Month LIBOR 5.36 5.36 5.37 4.54 4.48 6-Month LIBOR 5.36 5.32 5.38 4.70 4.64 1-Year LIBOR 5.25 5.18 5.31 4.84 4.81

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