Exhibit 99.17(b)(1)
CONFIDENTIAL
============
[Goldman Sachs Logo]
PRESENTATION TO THE BOARD OF DIRECTORS OF
BET HOLDINGS, INCORPORATED
The following pages contain material that was provided to the Special
Committee of the Board of Directors of BET Holdings, Incorporated in the context
of a meeting of the Special Committee to evaluate the transactions described in
this Schedule 13E-3 and the Proxy Statement filed by BET Holdings, Incorporated
on the date hereof. Certain information contained in this material was obtained
from BET Holdings, Incorporated, Mr. Robert L. Johnson, Liberty Media
Corporation, and from other sources. Any estimates and projections contained
herein have been prepared by the management of BET Holdings, Incorporated and/or
Mr. Robert L. Johnson and Liberty Media Corporation and involve numerous and
significant subjective determinations, which may or may not be correct. Neither
BET Holdings, Incorporated, nor Mr. Johnson, nor Liberty Media Corporation, nor
Goldman, Sachs & Co. expects to update or otherwise revise the accompanying
materials.
GOLDMAN, SACHS & CO.
MARCH 15, 1998
TABLE OF EXHIBITS
Exhibit
Executive Summary 1
Summary of Offer 2
Summary Financial Information 3
Overview of Market Perceptions of BET 4
Overview of Valuation
Analysis of BET Cable Network - Implied Discount Rates and AVP 5
Review of Selected Publicly Traded Companies 6
Analysis of Selected Merger Transactions 7
Discounted Cash Flow Analysis 8
Recapitalization Analysis 9
Salomon Smith Barney February 9, 1998 Presentation 10
Comparison of Selected Minority Buyouts 11
Comparison of Ratings 12
[Goldman Sachs Logo]
SUMMARY OF RECENT DEVELOPMENTS
- - Meeting with Salomon Smith Barney on February 9, 1998 to discuss valuation
methodologies behind their $48.00 per share offer
- - Call from Salomon Smith Barney on February 27, 1998 with new $63.00 per
share offer
- - Meeting with Special Committee of the Board of Directors of BET Holdings on
March 5, 1998 to review $63.00 per share offer
- - Delano Lewis, the Special Committee, met with Robert Johnson, member of the
buying group, to discuss possibility of raising offer price to $69.00 per
share
- - Robert Johnson indicated that the buying group was not willing to do a
transaction above the $63.00 per share price
- - Delano Lewis indicated that he will approve the $63.00 per share price,
subject to Goldman Sachs' Fairness Committee approval and a negotiated
merger agreement which includes neutralized voting
- - A full BET Holdings Board of Directors meeting scheduled for March 15
[Goldman Sachs Logo]
1
EXECUTIVE SUMMARY
- - BET shares appear to trade based on a multiple of consolidated
------------
profitability
- - Profitability and valuation of BET Holdings is depressed by operating
losses for the Company's other ventures which detract from the value of the
core cable network
- - Furthermore, valuation is impacted by concern as to Management's growth
strategy
- Little evidence that the cable brand meaningfully reduces the risks
inherent to the start ups of multiple new businesses
- - Given turnaround of losses and big pick up in 1998 EBITDA for the core
network, there is a potential in the short to medium term for a step
function change in valuation over the coming twelve months
- - The fundamental drivers of valuation will be Management's ability to
capitalize on key strengths of the business
- "Brand Equity"
- Loyal customer base with attractive demographics
- Strong distribution
- Inexpensive access to programming
- Strong cash flow margins
- - Key concerns by investors currently affect valuation
- Brand extension growth strategy dilutes the Company's core cable
network story
- Small public float
- Large concentration of voting between Johnson and Liberty (over 90%)
- High concentration of voting prevents stock from trading with a "take-
out premium"
- Growth perspectives given highly penetrated customer base
- Arrival of digital cable systems could threaten "scarcity" value
attributed to BET's current widespread distribution
[Goldman Sachs Logo]
2
SUMMARY OF THE PROPOSAL
- - $63 per share for those shares not now owned by Purchasing Group
- - Purchasing Group consisting of Robert Johnson and Liberty Media Corporation
- Johnson and Liberty to maintain proportionate ownership
- If successful Johnson would own 67% of BET Holdings and Liberty would
own 33%
- Management options to be cashed out
- - Share purchase would be financed in bank loan market by Bank of New York
- - Structure of transaction will take the form of a "long form merger"
- Shareholder vote with neutralized voting
[Goldman Sachs Logo]
3
[Goldman Sachs Logo]
ANALYSIS OF THE PROPOSAL
Based on Management Financials
Snapshot of Current Proposals
-----------------------------
Offer Price per share $63
Johnson Liberty Public
- --------------------------------------------------------------
Shares Outstanding 6,733,073 3,663,200 6,316,075
Basic Equity Value $ 1,053 Offer Price: $ 63.00
Option Value 53 Avg. Strike Price 15.67
-----------
Fully Diluted Equity 1,106 Spread 47.33
Value # of Option 1.8
Plus Net Debt 51 ----------
----------- Total 85.19
Levered Consideration 1,157 38% Tax 32.37
=========== ----------
52.82
Multiples
- ---------
Sales 1997A $ 154 7.5x
1998E 181 6.4
EBITDA 1997A $ 62 18.7x
1998E 92 12.6
EBIT 1997A $ 54 21.4x
1998E 82 14.1
EPS 1997A $ 1.36 46.3x
1998E 2.69 23.4
Apparent Versus Implied Valuation Multiples
-------------------------------------------
[Bar graph reflecting the following information:
EBITDA Multiple
---------------
Public Mkt. 11.5x(a)
Merger Market 18.3x(d)
Value Attributed to Non-Core Current Offer
200 13.9x(b)
150 14.6x(b)
100 15.3x(b)
0 16.7x(b)
Apparent 18.7x(c)]
(a) Average of 1997 EBITDA multiples of publicly traded comparables including
Disney, EMI, News Corp, Polygram, Seagram, Time Warner, Viacom, Gaylord
Entertainment and King World.
(b) Based on core BET network EBITDA.
(c) Based on core and non core EBITDA.
(d) LTM EBITDA average of IFE, Rainbow Programming, Westinghouse CBS/TNN and E!
transactions.
4
[Continued from previous page]
Apparent Versus Implied Valuation Multiples
-------------------------------------------
[Bar graph reflecting the following information:
Levered Consideration $1,157 at $63.00 per share]
1,157 = 18.7x Overall Implied Multiples Assuming that the
- ----- =====
62 EBITDA Value of Non-Core Business is
$0 $50 $100
--------------------------
16.7x 16.0x 15.3x
Note: Core 1997 EBITDA of $69mm
Gap Between Apparent and Core EBITDA
------------------------------------
[Bar graph reflecting the following information:
Gap
---
1995 $3
1996 $5
1997 $14(a)
1998 $4
1999 ($3)]
(a) Gap is reduced to $7 million if you include $7 million loss from BET Direct
into consolidated EBITDA
[Goldman Sachs Logo]
OVERVIEW OF BET HOLDINGS, INC.
[Organizational Chart]
BET Holdings
Non-Core Businesses Core Cable Network Equity Affiliates
- - BET on Jazz - Represents 88.3% of 1997 - BET Movies / Starz! 3
Revenue
- - Action Pay-Per-View - UrbanCityFoods
- Represents 98% of 1997 positive
- - Publishing operating cash flow - Cybersonic Records
- - BET Soundstage Restaurants - EBITDA margins of 51% in 1997, - Soundstage Hotel/Casino
projected to increase to 72% in
2002 - BET Financial Services
- 1998-2002 Revenue and EBITDA - BET Design Studio
CAGR of 15% and 21%
respectively
5
BET HOLDINGS, INC.
Management December 1997 Projections
Consolidated Statement of Operations
($ in thousands, July 31 FYE)
Historical Projected
---------------------------- --------------------------------------------------
1995 1996 1997 1998 1999 2000 2001 2002
- ---------------------------------------------------------------------------------------------------------------------------------
Revenues 111,783 128,694 154,226 180,898 222,419 264,082 307,483 342,103
Growth 15% 20% 17% 23% 19% 16% 11%
Expenses 72,136 83,995 100,451 99,643 106,089 112,820 119,873 125,440
EBITDA 44,213 49,858 62,435 92,113 128,720 170,947 217,903 247,320
EBITDA Margin 40% 39% 40% 51% 58% 65% 71% 72%
EBIT 37,517 41,812 53,775 82,120 117,341 157,656 201,660 230,713
Nonoperating Income/Expense
Equity Investments (1,203) (1,725) (3,399) (1,191) 4,953 17,852 22,511 23,033
Interest Income 1,325 1,504 1,554 182 92 1,322 4,711 9,970
Interest Expense 2,227 4,162 4,197 4,269 2,815 1,390 717 596
Other Expenses 275 58 1,141 250 250 250 250 250
-------- -------- -------- -------- -------- -------- -------- --------
Total Nonoperating Income/Expense (2,380) (4,441) (7,183) (4,693) 3,499 18,801 27,436 33,368
Income Before Taxes 35,137 37,371 46,592 76,592 119,321 175,190 227,915 262,870
Provision for Income Taxes 15,226 15,307 18,571 29,488 44,149 64,820 84,329 97,262
-------- -------- -------- -------- -------- -------- -------- --------
Loss from Discontinued Operations (4,235)
Net Income 19,911 22,064 23,786 47,104 75,172 110,370 143,586 165,608
Weighted Average Shares Outstanding
Weighted Average Shares Outstanding 19,867 18,454 16,703 16,700 16,700 16,700 16,700 16,700
Estimated common stock equivalents 812 800 800 800 800 800
-------- -------- -------- -------- -------- -------- -------- --------
19,867 18,454 17,515 17,500 17,500 17,500 17,500 17,500
Per Share
Net Income $1.00 $1.20 $1.36 $2.72 $4.35 $6.35 $8.25 $9.51
EBITDA - Consolidated $2.23 $2.70 3.56 5.26 7.36 9.77 12.45 14.13
6
[Goldman Sachs Logo]
[Chart continued from previous page]
CAGR
------------------
1995-1997 1998-
2002
------------------
Revenues 17% 17%
Growth -- --
Expenses 18 6
EBITDA 19 28
EBITDA Margin -- --
EBIT 20 29
Nonoperating Income/Expense
Equity Investments NM NM
Interest Income 8% 172%
Interest Expense 37 -39
Other Expenses 104 0
Total Nonoperating Income/Expense NM NM
Income Before Taxes 15% 36%
Provision for Income Taxes 10 35
Loss from Discontinued Operations
Net Income 9 37
Weighted Average Shares Outstanding -- --
Weighted Average Shares Outstanding -- --
Estimated common stock equivalents -- --
Per Share
Net Income 16% 37%
EBITDA - Consolidated 27 28
SUMMARY OF OPERATING PERFORMANCE
Management December 1997 Projections
BET Holdings, Inc. ($ in millions, July 31 FYE)
Revenues Operating Expenses
-------- ------------------
[Bar graph reflecting the following [Bar graph reflecting the following
information: information:
$ millions CAGR $ millions CAGR
---------- ---- ---------- ----
1995 111.8 --- 1995 72.1 ---
1996 128.7 15% 1996 84.0 16%
1997 154.2 20% 1997 100.5 20%
1998 180.1 17% 1998 99.6 (1)%
1999 222.4 23% 1999 106.1 6%
2000 264.1 19% 2000 112.8 6%
2001 307.5 16% 2001 119.9 6%
2002 342.1 11% 2002 125.4 5%
95-97 CAGR 17% 95-97 CAGR 18%
98-02 CAGR 17%] 97-02 CAGR 5%]
EBITDA/ EBIT EBIT After Equity in Unconsolidated
------------ -----------------------------------
Affiliates
----------
[Bar graph reflecting the following [Bar graph reflecting the following
information: information:
EBITDA EBIT EBITDA
$ millions $ millions CAGR $ millions CAGR
---------- ---------- ---- ---------- ----
1995 44.2 37.5 --- 1995 36.3 --
1996 49.9 41.8 13% 1996 40.1 10%
1997 62.4 53.8 25% 1997 50.4 26%
1998 92.1 82.1 48% 1998 80.9 61%
1999 128.7 117.3 40% 1999 122.3 51%
2000 170.9 157.7 33% 2000 175.5 44%
2001 217.9 201.7 27% 2001 224.2 28%
2002 247.3 230.7 14% 2002 253.7 13%
95-97 CAGR 19% 95-97 CAGR 18%
97-02 CAGR 28%] 97-02 CAGR 33%]
Note: Growth rates are shown for EBITDA only
7
BET HOLDINGS, INC.
Management December 1997 Projections
Profile of Estimated Performance by Unit
($ in thousands, July 31 FYE)
1995 1996 1997 1998
-------- -------- -------- --------
Revenues
- -- BET Network 100,470 116,148 136,162 160,550
- -- Action Pay-per-view 8,470 8,775 9,327 11,030
- -- BET on Jazz -- 405 1,125 2,225
- -- Publishing 2,843 3,366 4,233 7,093
- -- SoundStage Restaurants -- -- 3,379 --
------- ------- ------- -------
Total Revenues 111,783 128,694 154,226 180,898
EBITDA
- -- BET Network 46,877 54,473 68,938 96,397
- -- Action Pay-per-view 692 1,076 1,236 2,368
- -- BET on Jazz -- (1,862) (4,300) (7,383)
- -- Publishing (1,226) (942) (2,733) (592)
- -- SoundStage Restaurants -- (34) (706) 1,323
- -- BET Direct 42 (931) -- --
- -- YSB Magazine (2,172) (1,922) -- --
------- ------- ------- -------
Total EBITDA 44,213 49,858 62,435 92,113
Margins
- -- BET Network 47% 47% 51% 60%
- -- Action Pay-per-view 8 12 13 21
- -- BET on Jazz NM NM NM NM
- -- Publishing NA NA NA NA
- -- SoundStage Restaurants NA NA NA NA
8
[Goldman Sachs Logo]
[Chart continued from previous page]
CAGR
-------------------
1999 2000 2001 2002 1995-97 1998-02
- --------------------------------------------------------------------------------------------
Revenues
- -- BET Network 193,513 223,162 254,197 281,332 16% 15%
- -- Action Pay-per-view 12,133 13,346 14,681 16,149 5 10
- -- BET on Jazz 8,279 17,832 27,409 33,426 NM 97
- -- Publishing 8,494 9,742 11,196 11,196 22 12
- -- SoundStage Restaurants -- -- -- -- NM NM
------- ------- ------- -------
Total Revenues 222,419 264,082 307,483 342,103 17% 17%
EBITDA
- -- BET Network 126,329 152,659 180,002 203,290 21% 21%
- -- Action Pay-per-view 2,795 3,275 3,812 4,414 34 17
- -- BET on Jazz (2,752) 5,356 13,466 18,993 NM NM
- -- Publishing 112 638 1,323 1,323 NM NM
- -- SoundStage Restaurants 2,236 9,019 19,300 19,300 NM 95
- -- BET Direct -- -- -- -- NM NA
- -- YSB Magazine -- -- -- -- NM NA
------- ------- ------- -------
Total EBITDA 128,720 170,947 217,903 247,320 19% 28%
Margins
- -- BET Network 65% 68% 71% 72%
- -- Action Pay-per-view 23 25 26 27
- -- BET on Jazz NM 30 49 57
- -- Publishing 1% 7 12 12
- -- SoundStage Restaurants NA NA NA NA
SUMMARY OF OPERATING PERFORMANCE
Management December 1997 Projections
BET Cable Network ($ in millions, July 31 FYE)
Revenues Operating Expenses
-------- ------------------
[Bar graph reflecting the following information: [Bar graph reflecting the
following information:
$ millions CAGR $ millions CAGR
---------- ----- ---------- -----
1995 100.5 --- 1995 58.0 ---
1996 116.1 16% 1996 66.6 15%
1997 136.2 17% 1997 72.4 9%
1998 160.6 18% 1998 70.4 (3%)
1999 193.5 21% 1999 73.9 5%
2000 223.2 15% 2000 77.6 5%
2001 254.2 14% 2001 81.5 5%
2002 281.3 11% 2002 85.5 5%
95-97 CAGR 16% 95-97 CAGR 12%
98-02 CAGR 15%] 98-02 CAGR 5%]
EBITDA EBIT
------ ----
[Bar graph reflecting the following information: [Bar graph reflecting the
following information:
$ millions CAGR $ millions CAGR
---------- ----- ---------- -----
1995 46.9 --- 1995 42.5 ---
1996 54.5 16% 1996 49.5 17%
1997 68.9 27% 1997 63.7 29%
1998 96.4 40% 1998 90.2 42%
1999 126.3 31% 1999 119.6 33%
2000 152.7 21% 2000 145.6 22%
2001 180.0 18% 2001 172.7 19%
2002 203.3 13% 2002 195.8 13%
95-97 CAGR 21% 95-97 CAGR 22%
98-02 CAGR 21%] 98-02 CAGR 21%]
9
SUMMARY OF MANAGEMENT DECEMBER PROJECTIONS
BET Core Cable Network (a)
While EBITDA attributed to
subscriber growth is more
predictable, EBITDA from
advertising revenue increases
and EBITDA margin expansion
may seem less certain
[Bar graph reflecting the following information:
EBITDA ($ millions)
-------------------
1995 46.9
1996 54.4
1997 68.9
1998 96.4
1999 126.3
2000 152.7
2001 180.0
2002 203.3
21% EBITDA CAGR from 1998 - 2002
1998 2001
- ---- ----
- -- 19% advertising revenue growth -- Incremental $6.8mm in DBS revenues
- -- 3% decrease in operating expenses -- Incremental $0.9mm in Canadian subscriber revenues
- -- EBITDA margin expansion from 51% to 60% -- 12% advertising revenue growth
-- 5% increase in operating expenses
-- EBITDA margin expansion from 68% to 71%
1999 2002
- ---- ----
- -- Incremental $5.5mm in DBS revenues as -- Incremental $2.3mm in DBS revenues
carrier contract payment terms kick in -- Incremental $1.0mm in Canadian subscriber revenues
- -- Incremental $6.3mm in revenues from -- 10% advertising revenue growth
Canadian subscribers as carrier contract -- 5% increase in operating expenses
payment terms kick in -- EBITDA margin expansion from 71% to 72%
- -- 16% advertising revenue growth
- -- 5% increase in operating expenses
- -- EBITDA margin expansion from 60% to 65%
2000
- ----
- -- Incremental $5.3mm in DBS revenues
- -- Incremental $0.8mm in Canadian subscriber revenues
- -- 15% advertising revenue growth
- -- 5% increase in operating expenses
- -- EBITDA margin expansion from 65% to 68%]
(a) $ in millions, July 31 FYE.
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10
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CORE NETWORK SUBSCRIBER AND ADVERTISING ANALYSIS
Core Network Historical Subscriber Core Network Projected Subscriber
----------------------------------- ---------------------------------
[Bar graph reflecting the following [Bar graph reflecting the following
information: information :
Average
annual subscribers
--------------------
Q1 95 35.5 1998 56.0
Q2 95 36.1 36.6 1999 60.7
Q3 95 37.1 2000 65.1
Q4 95-7/31 37.5 2001 69.2
Q1 96 38.8 2002 73.3
Q2 96 39.9 40.2
Q3 96 40.7 BET 1998 - 2002 CAGR 7%
Q4 96-7/31 41.4 INDUSTRY 1998 - 2002 CAGR 2%]
Q1 97 42.4
Q2 97 43.9 44.9
Q3 97 46.1
Q4 97-7/31 47.1
Q1 98 49.6
1995 - 1997 CAGR 15.1%]
Current CPM Advertising Rate Analysis BET CPM Advertising Rate Forecast
------------------------------------- ---------------------------------
[Bar graph reflecting the following [Bar graph reflecting the
information: following information:
CMT $ 4.50 1997 $4.93
MTV $11.69 1998 $5.32
TNN $ 5.13 1999 $5.75
VH1 $ 5.10 2000 $6.21
E!TV $ 6.38 2001 $6.70
Family $ 5.88 2002 $7.24
Fx $ 5.13
Lifetime $ 8.08 1998 - 2002 cagr 8%]
Average $ 6.48
BET $ 4.93 BET Current Discount 24%]
11
COMPARISON OF OPERATING PROJECTIONS FOR CORE CABLE NETWORK
($ in millions)
Current September 1997
management Management
projections, which Projections
have been revised February 1998 Reviewed by
downward by Salomon December 1997 October 1997 Salomon Prior
management from Sensitized Management Management tO Original
those projections Projections Projections Projections $48 Offer
dated October 1997,
reflect (among other 2001 Revenues $217.1 $254.2 $283.2 $241.2
changes) decreases 2001 Operating Expenses 76.9 81.5 81.5 81.5
in advertising 2001 EBITDA 140.3 180.0 209.0 167.1
revenue growth 2001 EBITDA Margin 65% 71% 74% 69%
rates 1998-2001 Revenue CAGR 12 17 21 15
1998-2001 Advertising Revenue 8 14 22 N.A.
CAGR
1998-2001 Subscribe Revenue CAGR 17 19 19 N.A.
1998-2001 Operating Expense CAGR 6 5 5 3
1998-2001 Marketing Expense CAGR 8 6 8 N.A.
1998-2001 G & A Expense CAGR 4 4 3 N.A.
1998-2001 EBITDA CAGR 16 23 29 25
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12
QUARTERLY EBITDA COMPARISON (a)
CONSOLIDATED VS. CORE CABLE NETWORK
($ in millions)
1997 1998
---------------------------------------- ----------------------------------
Core Network Q1 Q2 Q3 Q4 Year(c) Six Months Annualized(d) Budget
Revenue $32.6 $32.7 $35.0 $35.8 $136.2 $74.7 $151.4 $160.6
EBITDA 16.2 16.4 18.8 17.6 68.9 41.0 84.0 96.4
Margin 49.7% 50.0% 53.7% 49.1% 50.6% 54.9% 55.5% 60.0%
Growth(b) 21.4% 16.7% 46.3% 19.8% 25.6% 26.2% 21.8% 40.0%
1997 1998
--------------------------------------- ----------------------------------
Consolidated Q1 Q2 Q3 Q4 Year(c) Six Months Annualized(d) Budget
Revenue $36.1 $36.6 $40.9 $40.7 $154.2 $84.9 $171.8 $180.9
EBITDA 13.6 13.7 15.3 19.9 62.4 35.4 72.8 92.1
Margin 37.7% 37.3% 37.3% 49.0% 40.5% 41.7% 42.4% 50.9%
Growth(b) 4.5% 6.3% 31.8% 47.6% 22.6% 26.3% 16.6% 47.5%
(a) Financial data based on publicly available relevant 10-K and 10-Q filings.
Six month financial information provided by management.
(b) Growth is based on comparison to same time period in fiscal year 1996.
(c) Fiscal year ended July 31, 1997.
(d) Annualized EBITDA includes $3.0 million of EBITDA due to subscriber rate
card increase effective July 1, 1998.
13
FIVE MONTH ACTUAL VS. BUDGET(a)
YTD Ended December 31, 1997
(dollars in millions, except per share amounts)
Variance
Five Month Actual Budget $ %
Revenue
- -------
Core Cable Network
Advertising $36.8 $37.5 ($0.7) (2.0%)
Subscriber 25.2 26.5 ($1.3) (5.0%)
Other 0.1 0 $ 0.1 N.M.
----- ----- ------ -----
Total Cable Revenue $62.0 $64.0 ($2.0) ($3.1%)
BET on Jazz 0.2 0.9 ($0.7) (79.6%)
Action Pay Per View 3.5 4.4 ($0.9) (20.7%)
Emerge Magazine 1.6 1.3 $ 0.3 21.5%
BET Weekend Magazine 1.2 1.4 ($0.2) (13.9%)
----- ----- ------ -----
Total Revenue(b) $68.4 $72.0 ($3.6) (5.0%)
EBITDA(c)
- ---------
Core Cable Network $33.1 $34.6 ($1.5) (4.3%)
BET on Jazz (4.0) (4.1) $0.1 1.7%
Emerge Magazine (0.8) (0.7) ($0.2) (28.9%)
BET Weekend Magazine (0.2) 0.3 ($0.5) N.M.
Restaurants (0.9) 0.2 ($1.1) N.M.
(a) Five month actual and budget provided by management.
(b) Five month revenue contributions from restaurants, BET Satellite, BET
Development, acquisitions and MSBET not provided by mgmt.
(c) Five month EBITDA not provided by management for Action Pay Per View, BET
Satellite, BET Development, acquisitions and MSBET.
14
COMPARISON OF EBITDA MARGINS
Basic Cable Programming(a)
1995A 1996A 1997A 1998E 1999E 2000E 2001E 2002E
----- ----- ----- ----- ----- ----- ----- -----
BET Core Cable EBITDA Margins 46.7% 46.9% 50.6% 60.0% 65.3% 68.4% 70.8% 72.3%
BET Consolidated EBITDA Margins 40.0% 39.0% 40.0% 51.0% 58.0% 65.0% 71.0% 72.0%
Other Selected 1998 FYE EBITDA Margins
1998E
-----
Rainbow Programming 16.4%
USA Networks 18.5%
International Family Entertainment 25.8%
E! Network 31.8%
MTV 42.6%
(a) Based on December projections provided by BET management.
15
OBSERVATIONS FROM DUE DILIGENCE
Review of Management Projections for Non-Core Operations
Consolidated Non-Core Operations
- --------------------------------
- -- BET on Jazz has the most significant effect on valuation of all BET
Holding's non core network ventures
-- 97% Revenue CAGR from 1998 to 2002 growing from $2.2 million to $33.4
million
-- Turns EBITDA positive in 2000 and grows at 88% EBITDA CAGR from 2000 to
2002
-- Strong EBITDA margin expansion from 30% in 2000 to 57% in 2002
- -- SoundStage Restaurants also have a moderate effect on valuation
-- 95% EBITDA CAGR from 1998 to 2002 from $1.3 million to $19.3 million
- -- Action Pay-Per-View and Publishing Group do not generate meaningful EBITDA
over the projected period
Equity in Unconsolidated Affiliates
- -----------------------------------
- -- Unconsolidated Affiliates dilute earnings through 1998
- -- EPS contribution does not occur until 1999
-- $0.17 incremental EPS in 1999
-- $0.62 incremental EPS in 2000
- -- SoundStage Hotel / Casino in main generator of this EPS pick up
16
SUMMARY OF OPERATING PERFORMANCE
Management December 1997 Projections
Consolidated Non-Core Operations ($ in millions, July 31 FYE)
Revenues Operating Expenses
-------- ------------------
[Bar graph reflecting the following information: [Bar graph reflecting the following information:
$ millions CAGR $ millions CAGR
---------- ---- ---------- ----
1995 11.3 --- 1995 14.2 --
1996 12.5 11% 1996 17.4 23%
1997 18.1 44% 1997 23.7 37%
1998 20.3 13% 1998 29.3 23%
1999 28.9 42% 1999 32.2 10%
2000 40.9 42% 2000 35.2 9%
2001 53.3 30% 2001 38.4 9%
2002 60.8 14% 2002 39.9 4%
95-97 CAGR 26% 95-97 CAGR 26%
98-02 CAGR 32%] 98-02 CAGR 8%]
EBITDA EBIT
------ ----
[Bar graph reflecting the following information: [Bar graph reflecting the following information:
$ millions CAGR $ millions CAGR
---------- ---- ---------- ----
1995 (2.7) --- 1995 (5.0) ---
1996 (4.6) --- 1996 (7.7) ---
1997 (13.6) --- 1997 (17.0) ---
1998 (4.3) --- 1998 (8.1) ---
1999 2.4 --- 1999 (2.3) ---
2000 18.3 665% 2000 12.1 ---
2001 37.9 107% 2001 28.9 140%
2002 44.0 16%] 2002 34.9 21%]
Note: CAGR not measurable Note: CAGR not measurable
17
SUMMARY OF OPERATING PERFORMANCE
Management DEcember 1997 Projections
Equity in Unconsolidated Affiliates ($ in millions, July 31 FYE)
[BAR GRAPH REFLECTING THE FOLLOWING INFORMATION:
BET FILMS/BET BET BET FINANCIAL BET SOUNDSTAGE
TOTAL OTHER PICTURES/UIE MOVIES/STARZ!3 SERVICES STUDIO HOTEL/CASINO
----- ----- ------------ -------------- -------- ------- ------------
($ MILLIONS)
1995 (1.2) (0.6) (0.6) --- --- --- ---
1996 (1.7) (0.2) (1.5) --- --- --- ---
1997 (3.4) --- --- (3.4) --- --- ---
1998 (1.2) --- --- (0.8) 0.2 (0.6) ---
1999 5.0 --- --- --- 3.9 1.0 ---
2000 17.9 --- --- 2.0 3.2 2.8 9.9
2001 22.5 --- --- 4.0 3.6 4.5 10.4
2002 23.0 --- --- 4.0 3.6 4.5 11.0]
18
SUMMARY OBSERVATIONS OF MARKET PERCEPTION
Stock Price Performance
- -- For the past three years, BET is up 244%; for the past year, up
approximately 78%
- -- For the one year and three year periods, BET performed relative to its peer
groups follow
Annualized Returns
---------------------------------------
BET S&P Medium Cap Large Cap
-----------------------------------------------------
One Year 78.42% 34.87% 25.43% 26.03%
Three Year 51.02 28.35 7.14 10.74
-----------------------------------------------------
Valuation
- -- BET appears to be trading at a steep discount based on a discounted cash
flow analysis of management projections
Analyst Perspective
- -- Wall Street Analysts, most providing an outperform rating, believe in BET's
long-term asset value and hae attached a significant private market
premium to the public market
19
BET HOLDINGS
Daily Common Stock Price and Trading Volume History
[Bar graph reflecting the following information:
Closing Market
Price (USD) Volume (000)
-------------- ------------
Daily from
3/12/97
to 3/12/98
12-Mar-97 30.250 6200
13-Mar-97 30.125 1900
14-Mar-97 30.000 4900
17-Mar-97 30.125 5500
18-Mar-97 29.875 2200
19-Mar-97 30.250 3600
20-Mar-97 29.875 5400
21-Mar-97 28.250 30600
24-Mar-97 27.875 13500
25-Mar-97 28.000 53000
26-Mar-97 28.750 8300
27-Mar-97 29.875 10700
28-Mar-97 29.875
31-Mar-97 29.625 14800
01-Apr-97 30.625 11000
02-Apr-97 30.625 7100
03-Apr-97 30.500 3800
04-Apr-97 30.250 2000
07-Apr-97 30.375 3500
08-Apr-97 30.000 2200
09-Apr-97 29.750 1200
10-Apr-97 29.750 200
11-Apr-97 29.500 1400
14-Apr-97 29.250 2500
15-Apr-97 28.625 6600
16-Apr-97 28.875 29900
17-Apr-97 28.875 2200
[Goldman Sachs Logo]
20
[Bar graph continued from previous page]
18-Apr-97 29.000 500
21-Apr-97 28.875 2800
22-Apr-97 28.625 12900
23-Apr-97 29.125 1100
24-Apr-97 29.000 6400
25-Apr-97 28.625 9000
28-Apr-97 28.750 9500
29-Apr-97 28.750 7000
30-Apr-97 28.875 12800
01-May-97 29.000 12100
02-May-97 29.000 8100
05-May-97 29.000 11400
06-May-97 28.625 11200
07-May-97 28.250 9800
08-May-97 27.500 9800
09-May-97 28.000 22400
12-May-97 28.875 10300
13-May-97 28.500 8700
14-May-97 28.250 14600
15-May-97 28.125 12900
16-May-97 28.625 58500
19-May-97 29.125 2900
20-May-97 29.125 3900
21-May-97 30.000 5400
22-May-97 30.625 7600
23-May-97 30.875 4400
26-May-97 30.875
27-May-97 31.250 5200
28-May-97 31.750 58300
29-May-97 32.125 9900
30-May-97 32.125 16500
02-Jun-97 33.125 11500
03-Jun-97 33.125 8000
[Bar graph continued from previous page]
04-Jun-97 33.125 3000
05-Jun-97 33.250 19000
06-Jun-97 33.375 4400
09-Jun-97 33.250 17500
10-Jun-97 33.500 9300
11-Jun-97 34.500 34500
12-Jun-97 34.000 12700
13-Jun-97 33.750 45100
16-Jun-97 33.625 2900
17-Jun-97 33.625 4300
18-Jun-97 33.250 7800
19-Jun-97 33.375 29000
20-Jun-97 33.250 59500
23-Jun-97 33.750 25900
24-Jun-97 33.750 24800
25-Jun-97 33.875 9400
26-Jun-97 33.500 3800
27-Jun-97 33.000 23800
30-Jun-97 32.750 25500
01-Jul-97 32.750 16800
02-Jul-97 32.875 11300
03-Jul-97 33.250 3900
04-Jul-97 33.250
07-Jul-97 32.938 29900
08-Jul-97 32.938 2800
09-Jul-97 32.813 7700
10-Jul-97 33.375 20900
11-Jul-97 33.063 40800
14-Jul-97 32.813 40800
15-Jul-97 32.500 31200
16-Jul-97 32.125 39400
17-Jul-97 33.250 68000
[Bar graph continued from previous page]
18-Jul-97 34.938 27000
21-Jul-97 34.938 10000
22-Jul-97 35.250 12100
23-Jul-97 35.875 12800
24-Jul-97 35.875 2200
25-Jul-97 36.500 11000
28-Jul-97 36.625 4800
29-Jul-97 36.875 4300
30-Jul-97 37.438 9700
31-Jul-97 40.000 25500
01-Aug-97 39.000 40800
04-Aug-97 38.750 4400
05-Aug-97 38.938 2900
06-Aug-97 39.250 3500
07-Aug-97 39.250 2300
08-Aug-97 39.250 3300
11-Aug-97 39.375 1600
12-Aug-97 39.250 300
13-Aug-97 39.563 4500
14-Aug-97 39.813 6100
15-Aug-97 39.750 3600
18-Aug-97 39.625 4800
19-Aug-97 39.938 4800
20-Aug-97 40.250 9400
21-Aug-97 39.750 4200
22-Aug-97 39.625 3800
25-Aug-97 39.563 900
26-Aug-97 39.500 9300
27-Aug-97 39.563 5200
28-Aug-97 39.500 5200
29-Aug-97 39.375 7600
01-Sep-97 39.375
02-Sep-97 39.875 3600
[Bar graph continued from previous page]
03-Sep-97 39.750 6900
04-Sep-97 39.750 1000
05-Sep-97 39.750 3500
08-Sep-97 41.313 22200
09-Sep-97 41.875 3100
10-Sep-97 41.000 7900
11-Sep-97 51.500 49300
12-Sep-97 52.563 171500
15-Sep-97 52.563 18200
16-Sep-97 53.000 33300
17-Sep-97 53.125 214700
18-Sep-97 53.438 8100
19-Sep-97 52.875 7600
22-Sep-97 53.000 14200
23-Sep-97 52.875 38400
24-Sep-97 53.125 26700
25-Sep-97 53.063 18600
26-Sep-97 52.938 5000
29-Sep-97 52.813 88300
30-Sep-97 52.875 14700
01-Oct-97 53.000 18000
02-Oct-97 53.000 6000
03-Oct-97 53.000 26000
06-Oct-97 53.125 3100
07-Oct-97 54.563 191900
08-Oct-97 54.625 14000
09-Oct-97 53.625 5100
10-Oct-97 55.125 14800
13-Oct-97 54.375 12600
14-Oct-97 53.875 1400
15-Oct-97 53.938 12400
16-Oct-97 54.000 3200
17-Oct-97 53.938 8900
[Bar graph continued from previous page]
20-Oct-97 54.125 2800
21-Oct-97 54.063 4200
22-Oct-97 54.000 11000
23-Oct-97 53.125 13200
24-Oct-97 53.438 11500
27-Oct-97 52.000 9900
28-Oct-97 51.250 19100
29-Oct-97 51.750 19500
30-Oct-97 50.938 6100
31-Oct-97 50.938 15900
03-Nov-97 50.938
04-Nov-97 52.063 3500
05-Nov-97 52.000 3700
06-Nov-97 52.000 5700
07-Nov-97 51.250 12700
10-Nov-97 51.750 62200
11-Nov-97 52.125 9200
12-Nov-97 51.500 12900
13-Nov-97 51.875 52200
14-Nov-97 51.750 40800
17-Nov-97 52.125 73700
18-Nov-97 52.250 12000
19-Nov-97 52.000 35600
20-Nov-97 52.531 98800
21-Nov-97 52.625 22200
24-Nov-97 52.563 17500
25-Nov-97 52.188 42500
26-Nov-97 52.688 3900
27-Nov-97 52.688
28-Nov-97 53.313 10200
01-Dec-97 53.000 14200
02-Dec-97 52.688 3400
03-Dec-97 52.000 9000
[Bar graph continued from previous page]
04-Dec-97 52.313 50800
05-Dec-97 52.375 51400
08-Dec-97 52.438 32600
09-Dec-97 53.625 28600
10-Dec-97 52.750 7100
11-Dec-97 52.375 16000
12-Dec-97 52.875 13000
15-Dec-97 52.875 19100
16-Dec-97 53.250 18200
17-Dec-97 53.500 18600
18-Dec-97 53.250 14800
19-Dec-97 53.625 11800
22-Dec-97 54.000 3800
23-Dec-97 54.063 5100
24-Dec-97 54.000 2700
25-Dec-97 54.000
26-Dec-97 53.875 1000
29-Dec-97 53.875 1900
30-Dec-97 53.938 5100
31-Dec-97 54.625 12100
01-Jan-98 54.625
02-Jan-98 54.813 3100
05-Jan-98 55.000 1400
06-Jan-98 55.000 100
07-Jan-98 54.438 6700
08-Jan-98 54.188 8100
09-Jan-98 54.250 8300
12-Jan-98 54.063 1500
13-Jan-98 53.813 9100
14-Jan-98 53.500 11400
15-Jan-98 53.000 1600
16-Jan-98 53.375 3600
19-Jan-98 53.375
[Bar graph continued from previous page]
20-Jan-98 53.375
21-Jan-98 53.000 7500
22-Jan-98 53.375 3000
23-Jan-98 53.000 18300
26-Jan-98 54.750 5200
27-Jan-98 55.125 54000
28-Jan-98 54.938 8000
29-Jan-98 54.938 3000
30-Jan-98 55.125 3800
02-Feb-98 55.375 2900
03-Feb-98 55.625 6300
04-Feb-98 55.250 7000
05-Feb-98 53.500 9600
06-Feb-98 54.500 9700
09-Feb-98 54.938 7900
10-Feb-98 55.125 9200
11-Feb-98 55.313 5500
12-Feb-98 54.125 22300
13-Feb-98 53.438 24700
16-Feb-98 53.438
17-Feb-98 53.625 4800
18-Feb-98 53.625 2500
19-Feb-98 53.813 3600
20-Feb-98 55.250 12200
23-Feb-98 55.125 9200
24-Feb-98 55.000 2400
25-Feb-98 55.000 1600
26-Feb-98 54.563 27700
27-Feb-98 54.563 16700
02-Mar-98 55.250 6300
03-Mar-98 54.875 13600
04-Mar-98 54.625 10000
[Bar graph continued from previous page]
05-Mar-98 54.500 9900
06-Mar-98 54.688 2800
09-Mar-98 54.000 6800
10-Mar-98 55.125 8000
11-Mar-98 54.750 5000
12-Mar-98 53.750 13000]
6/11/97 10/6/97
- ------- -------
Market Cap 616 Market Cap 951
1997 EBITDA Multiple 9.9x 1997 EBITDA Multiple 15.2X
7/31/97 12/31/97
- ------- --------
Market Cap 716 Market Cap 1,032
1997 EBITDA Multiple 11.5X 1997 EBITDA 16.5X
9/10/97
- -------
Market Cap 734
1997 EBITDA Multiple 11.8X]
Source: Muller
PRICE AND VOLUME HISTORY
BET Holdings, Inc.
One Year Three Year
-------- ----------
[Bar graph reflecting the following information: [Bar graph reflecting the following information:
Closing Market Closing Market
Price (USD) Volume (000) Price (USD) Volume (000)
----------- ------------ ----------- -----------
Daily from Weekly from
3/12/97 to 3/10/95 to
3/12/98 3/6/98
12-Mar-97 30.250 6200 10-Mar-95 15.750 11800
13-Mar-97 30.125 1900 17-Mar-95 16.125 6900
14-Mar-97 30.000 4900 24-Mar-95 16.875 79400
17-Mar-97 30.125 5500 31-Mar-95 17.375 31300
18-Mar-97 29.875 2200 07-Apr-95 17.250 114800
19-Mar-97 30.250 3600 14-Apr-95 17.000 123500
20-Mar-97 29.875 5400 21-Apr-95 18.000 58400
21-Mar-97 28.250 30600 28-Apr-95 17.000 5400
24-Mar-97 27.875 13500 05-May-95 17.250 20300
25-Mar-97 28.000 53000 12-May-95 17.250 21000
26-Mar-97 28.750 8300 19-May-95 17.125 35000
27-Mar-97 29.875 10700 26-May-95 17.500 22000
28-Mar-97 29.875 02-Jun-95 17.375 9000
31-Mar-97 29.625 14800 09-Jun-95 17.375 157200
01-Apr-97 30.625 11000 16-Jun-95 17.625 15100
02-Apr-97 30.625 7100 23-Jun-95 18.625 13800
03-Apr-97 30.500 3800 30-Jun-95 18.250 8200
04-Apr-97 30.250 2000 07-Jul-95 18.750 26800
07-Apr-97 30.375 3500 14-Jul-95 18.625 2800
08-Apr-97 30.000 2200 21-Jul-95 16.750 67000
09-Apr-97 29.750 1200 28-Jul-95 17.625 32500
10-Apr-97 29.750 200 04-Aug-95 18.125 14400
11-Apr-97 29.500 1400 11-Aug-95 18.250 35100
14-Apr-97 29.250 2500 18-Aug-95 18.375 21600
15-Apr-97 28.625 6600 25-Aug-95 18.375 19500
16-Apr-97 28.875 29900 01-Sep-95 18.875 32600
17-Apr-97 28.875 2200 08-Sep-95 19.125 24300
21
[Bar graph continued from previous page]
18-Apr-97 29.000 500 15-Sep-95 19.625 10700
21-Apr-97 28.875 2800 22-Sep-95 19.000 31700
22-Apr-97 28.625 12900 29-Sep-95 20.000 49400
23-Apr-97 29.125 1100 06-Oct-95 19.000 63000
24-Apr-97 29.000 6400 13-Oct-95 19.625 41500
25-Apr-97 28.625 9000 20-Oct-95 21.750 52800
28-Apr-97 28.750 9500 27-Oct-95 21.000 13200
29-Apr-97 28.750 7000 03-Nov-95 22.250 155800
30-Apr-97 28.875 12800 10-Nov-95 20.875 17800
01-May-97 29.000 12100 17-Nov-95 21.625 120200
02-May-97 29.000 8100 24-Nov-95 23.000 19400
05-May-97 29.000 11400 01-Dec-95 23.500 32100
06-May-97 28.625 11200 08-Dec-95 23.625 14600
07-May-97 28.250 9800 15-Dec-95 23.000 28700
08-May-97 27.500 9800 22-Dec-95 22.250 16600
09-May-97 28.000 22400 29-Dec-95 22.875 129000
12-May-97 28.875 10300 05-Jan-96 23.500 81500
13-May-97 28.500 8700 12-Jan-96 23.000 39100
14-May-97 28.250 14600 19-Jan-96 25.000 64200
15-May-97 28.125 12900 26-Jan-96 23.500 63300
16-May-97 28.625 58500 02-Feb-96 25.750 118300
19-May-97 29.125 2900 09-Feb-96 28.750 116300
20-May-97 29.125 3900 16-Feb-96 30.250 246700
21-May-97 30.000 5400 23-Feb-96 30.750 240400
22-May-97 30.625 7600 01-Mar-96 30.875 104900
23-May-97 30.875 4400 08-Mar-96 31.250 104100
26-May-97 30.875 15-Mar-96 31.500 46800
27-May-97 31.250 5200 22-Mar-96 29.375 70900
28-May-97 31.750 58300 29-Mar-96 27.875 103200
29-May-97 32.125 9900 05-Apr-96 27.750 80200
30-May-97 32.125 16500 12-Apr-96 26.625 93500
02-Jun-97 33.125 11500 19-Apr-96 28.625 48600
[Bar graph continued from previous page]
03-Jun-97 33.125 8000 26-Apr-96 29.250 29000
04-Jun-97 33.125 3000 03-May-96 29.625 40500
05-Jun-97 33.250 19000 10-May-96 29.500 49400
06-Jun-97 33.375 4400 17-May-96 27.500 119000
09-Jun-97 33.250 17500 24-May-96 27.000 43300
10-Jun-97 33.500 9300 31-May-96 26.625 118800
11-Jun-97 34.500 34500 07-Jun-96 28.250 98600
12-Jun-97 34.000 12700 14-Jun-96 27.500 64500
13-Jun-97 33.750 45100 21-Jun-96 26.500 112300
16-Jun-97 33.625 2900 28-Jun-96 26.375 58100
17-Jun-97 33.625 4300 05-Jul-96 24.750 128900
18-Jun-97 33.250 7800 12-Jul-96 25.750 58800
19-Jun-97 33.375 29000 19-Jul-96 26.375 32100
20-Jun-97 33.250 59500 26-Jul-96 25.188 33300
23-Jun-97 33.750 25900 02-Aug-96 23.500 59200
24-Jun-97 33.750 24800 09-Aug-96 24.375 60500
25-Jun-97 33.875 9400 16-Aug-96 25.625 22000
26-Jun-97 33.500 3800 23-Aug-96 25.750 11700
27-Jun-97 33.000 23800 30-Aug-96 25.625 11300
30-Jun-97 32.750 25500 06-Sep-96 25.500 8900
01-Jul-97 32.750 16800 13-Sep-96 26.875 21000
02-Jul-97 32.875 11300 20-Sep-96 26.750 49000
03-Jul-97 33.250 3900 27-Sep-96 29.000 47200
04-Jul-97 33.250 04-Oct-96 29.250 30200
07-Jul-97 32.938 29900 11-Oct-96 28.875 19400
08-Jul-97 32.938 2800 18-Oct-96 29.000 38000
09-Jul-97 32.813 7700 25-Oct-96 29.875 52100
10-Jul-97 33.375 20900 01-Nov-96 29.000 23400
11-Jul-97 33.063 40800 08-Nov-96 27.250 43700
14-Jul-97 32.813 40800 15-Nov-96 27.500 63100
15-Jul-97 32.500 31200 22-Nov-96 27.750 15800
16-Jul-97 32.125 39400 29-Nov-96 27.750 17600
[Bar graph continued from previous page]
17-Jul-97 33.250 68000 06-Dec-96 28.375 23800
18-Jul-97 34.938 27000 13-Dec-96 26.750 41100
21-Jul-97 34.938 10000 20-Dec-96 26.750 131600
22-Jul-97 35.250 12100 27-Dec-96 27.625 88700
23-Jul-97 35.875 12800 03-Jan-97 29.313 38600
24-Jul-97 35.875 2200 10-Jan-97 27.875 49900
25-Jul-97 36.500 11000 17-Jan-97 27.875 89000
28-Jul-97 36.625 4800 24-Jan-97 25.250 85600
29-Jul-97 36.875 4300 31-Jan-97 26.250 96000
30-Jul-97 37.438 9700 07-Feb-97 26.500 50000
31-Jul-97 40.000 25500 14-Feb-97 29.375 27100
01-Aug-97 39.000 40800 21-Feb-97 30.250 48900
04-Aug-97 38.750 4400 28-Feb-97 29.375 23100
05-Aug-97 38.938 2900 07-Mar-97 28.250 33300
06-Aug-97 39.250 3500 14-Mar-97 30.000 23500
07-Aug-97 39.250 2300 21-Mar-97 28.250 47300
08-Aug-97 39.250 3300 28-Mar-97 29.875 116100
11-Aug-97 39.375 1600 04-Apr-97 30.250 38700
12-Aug-97 39.250 300 11-Apr-97 29.500 8500
13-Aug-97 39.563 4500 18-Apr-97 29.000 41700
14-Aug-97 39.813 6100 25-Apr-97 28.625 32200
15-Aug-97 39.750 3600 02-May-97 29.000 49500
18-Aug-97 39.625 4800 09-May-97 28.000 64600
19-Aug-97 39.938 4800 16-May-97 28.625 105000
20-Aug-97 40.250 9400 23-May-97 30.875 24200
21-Aug-97 39.750 4200 30-May-97 32.125 94300
22-Aug-97 39.625 3800 06-Jun-97 33.375 45900
25-Aug-97 39.563 900 13-Jun-97 33.750 119100
26-Aug-97 39.500 9300 20-Jun-97 33.250 103500
27-Aug-97 39.563 5200 27-Jun-97 33.000 87700
28-Aug-97 39.500 5200 04-Jul-97 33.250 81300
29-Aug-97 39.375 7600 11-Jul-97 33.063 102100
[Bar graph continued from previous page]
01-Sep-97 39.375 18-Jul-97 34.938 206400
02-Sep-97 39.875 3600 25-Jul-97 36.500 48100
03-Sep-97 39.750 6900 01-Aug-97 39.000 85100
04-Sep-97 39.750 1000 08-Aug-97 39.250 16400
05-Sep-97 39.750 3500 15-Aug-97 39.750 16100
08-Sep-97 41.313 22200 22-Aug-97 39.625 27000
09-Sep-97 41.875 3100 29-Aug-97 39.375 28200
10-Sep-97 41.000 7900 05-Sep-97 39.750 22600
11-Sep-97 51.500 49300 12-Sep-97 52.563 254000
12-Sep-97 52.563 171500 19-Sep-97 52.875 281900
15-Sep-97 52.563 18200 26-Sep-97 52.938 102900
16-Sep-97 53.000 33300 03-Oct-97 53.000 153000
17-Sep-97 53.125 214700 10-Oct-97 55.125 228900
18-Sep-97 53.438 8100 17-Oct-97 53.938 38500
19-Sep-97 52.875 7600 24-Oct-97 53.438 42700
22-Sep-97 53.000 14200 31-Oct-97 50.938 70500
23-Sep-97 52.875 38400 07-Nov-97 51.250 56500
24-Sep-97 53.125 26700 14-Nov-97 51.750 177300
25-Sep-97 53.063 18600 21-Nov-97 52.625 242300
26-Sep-97 52.938 5000 28-Nov-97 53.313 96300
29-Sep-97 52.813 88300 05-Dec-97 52.375 128800
30-Sep-97 52.875 14700 12-Dec-97 52.875 97300
01-Oct-97 53.000 18000 19-Dec-97 53.625 82500
02-Oct-97 53.000 6000 26-Dec-97 53.875 24400
03-Oct-97 53.000 26000 02-Jan-98 54.813 23200
06-Oct-97 53.125 3100 09-Jan-98 54.250 24600
07-Oct-97 54.563 191900 16-Jan-98 53.375 27200
08-Oct-97 54.625 14000 23-Jan-98 53.000 32400
09-Oct-97 53.625 5100 30-Jan-98 55.125 74000
10-Oct-97 55.125 14800 06-Feb-98 54.500 35500
13-Oct-97 54.375 12600 13-Feb-98 53.438 69600
14-Oct-97 53.875 1400 20-Feb-98 55.250 47800
15-Oct-97 53.938 12400 27-Feb-98 54.563 57600
16-Oct-97 54.000 3200 06-Mar-98 54.688 42600
[Bar graph continued from previous page]
17-Oct-97 53.938 8900
20-Oct-97 54.125 2800
21-Oct-97 54.063 4200
22-Oct-97 54.000 11000
23-Oct-97 53.125 13200
24-Oct-97 53.438 11500
27-Oct-97 52.000 9900
28-Oct-97 51.250 19100
29-Oct-97 51.750 19500
30-Oct-97 50.938 6100
31-Oct-97 50.938 15900
03-Nov-97 50.938
04-Nov-97 52.063 3500
05-Nov-97 52.000 3700
06-Nov-97 52.000 5700
07-Nov-97 51.250 12700
10-Nov-97 51.750 62200
11-Nov-97 52.125 9200
12-Nov-97 51.500 12900
13-Nov-97 51.875 52200
14-Nov-97 51.750 40800
17-Nov-97 52.125 73700
18-Nov-97 52.250 12000
19-Nov-97 52.000 35600
20-Nov-97 52.531 98800
21-Nov-97 52.625 22200
24-Nov-97 52.563 17500
25-Nov-97 52.188 42500
26-Nov-97 52.688 3900
27-Nov-97 52.688
28-Nov-97 53.313 10200
01-Dec-97 53.000 14200
[Bar graph continued from previous page]
02-Dec-97 52.688 3400
03-Dec-97 52.000 9000
04-Dec-97 52.313 50800
05-Dec-97 52.375 51400
08-Dec-97 52.438 32600
09-Dec-97 53.625 28600
10-Dec-97 52.750 7100
11-Dec-97 52.375 16000
12-Dec-97 52.875 13000
15-Dec-97 52.875 19100
16-Dec-97 53.250 18200
17-Dec-97 53.500 18600
18-Dec-97 53.250 14800
19-Dec-97 53.625 11800
22-Dec-97 54.000 3800
23-Dec-97 54.063 5100
24-Dec-97 54.000 2700
25-Dec-97 54.000
26-Dec-97 53.875 1000
29-Dec-97 53.875 1900
30-Dec-97 53.938 5100
31-Dec-97 54.625 12100
01-Jan-98 54.625
02-Jan-98 54.813 3100
05-Jan-98 55.000 1400
06-Jan-98 55.000 100
07-Jan-98 54.438 6700
08-Jan-98 54.188 8100
09-Jan-98 54.250 8300
12-Jan-98 54.063 1500
13-Jan-98 53.813 9100
[Bar graph continued from previous page]
14-Jan-98 53.500 11400
15-Jan-98 53.000 1600
16-Jan-98 53.375 3600
19-Jan-98 53.375
20-Jan-98 53.375
21-Jan-98 53.000 7500
22-Jan-98 53.375 3000
23-Jan-98 53.000 18300
26-Jan-98 54.750 5200
27-Jan-98 55.125 54000
28-Jan-98 54.938 8000
29-Jan-98 54.938 3000
30-Jan-98 55.125 3800
02-Feb-98 55.375 2900
03-Feb-98 55.625 6300
04-Feb-98 55.250 7000
05-Feb-98 53.500 9600
06-Feb-98 54.500 9700
09-Feb-98 54.938 7900
10-Feb-98 55.125 9200
11-Feb-98 55.313 5500
12-Feb-98 54.125 22300
13-Feb-98 53.438 24700
16-Feb-98 53.438
17-Feb-98 53.625 4800
18-Feb-98 53.625 2500
19-Feb-98 53.813 3600
20-Feb-98 55.250 12200
23-Feb-98 55.125 9200
24-Feb-98 55.000 2400
25-Feb-98 55.000 1600
[Bar graph continued from previous page]
26-Feb-98 54.563 27700
27-Feb-98 54.563 16700
02-Mar-98 55.250 6300
03-Mar-98 54.875 13600
04-Mar-98 54.625 10000
05-Mar-98 54.500 9900
06-Mar-98 54.688 2800
09-Mar-98 54.000 6800
10-Mar-98 55.125 8000
11-Mar-98 54.750 5000
12-Mar-98 53.750 13000]
ANALYSIS OF BET HOLDINGS
Public Trading History
Shares Traded at Various Prices - Three Years Shares Traded at Various Prices - One Year
- --------------------------------------------- ------------------------------------------
[Bar graph reflecting the following information: [Bar graph reflecting the following information:
Daily from Daily from
3/13/95 to 3/12/98 Volume (000) 3/13/97 to 3/13/98 Volume (000)
- ------------------ ------------ ------------------ ------------
15.00 to 17.99 653100.00 27.00 to 28.99 356300.00
18.00 643100.00 29.00 147700.00
21.00 562200.00 31.00 295300.00
24.00 1289200.00 33.00 526800.00
27.00 2033700.00 35.00 47200.00
30.00 1150600.00 37.00 17000.00
33.00 553900.00 39.00 161700.00
36.00 37100.00 41.00 33200.00
39.00 194900.00 43.00 0.00
42.00 0.00 45.00 0.00
45.00 0.00 47.00 0.00
48.00 22000.00 49.00 22000.00
51.00 1842200.00 51.00 1183900.00
54.00 to 56.99 584400.00 53.00 1119700.00
55.00 to 56.99 144700.00
Weighted Average Price: 33.49 Weighted Average Price: 45.04
Total Shares Traded as Percent Total Shares Traded as Percent
of Shares Outstanding: 95.4%] of Shares Outstanding: 40.0%]
22
[Bar graphs continued from previous page]
Shares Traded at Various Prices - Six Months Shares Traded at Various Prices - Three Months
- -------------------------------------------- ----------------------------------------------
[Bar graph reflecting the following information: [Bar graph reflecting the following information:
Daily from Daily from
9/15/97 to 3/13/98 Volume (000) 12/15/97 to 3/13/98 Volume (000)
- -------------------- ------------ ------------------- ------------
50.70 to 51.19 22000.00 52.70 to 52.89 19100.00
51.20 44700.00 52.90 27400.00
51.70 398400.00 53.10 33000.00
52.20 326800.00 53.30 31300.00
52.70 608600.00 53.50 58700.00
53.20 186500.00 53.70 28600.00
53.70 127900.00 53.90 25000.00
54.20 344100.00 54.10 38700.00
54.70 150300.00 54.30 6700.00
55.20 to 55.69 40200.00 54.50 110600.00
54.70 26900.00
54.90 24400.00
55.10 109700.00
55.30 8400.00
55.50 to 55.69 6300.00
Weighted Average Price: 53.20 Weighted Average Price: 54.24
Total Shares Traded as Percent Total Shares Traded as Percent
of Shares Outstanding: 22.0%] of Shares Outstanding: 5.3%]
RELATIVE STOCK PERORMANCE
For the past year, BET is up approximately 78%
Large Cap Index includes: Disney, EMI Group, News Corp, Polygram, Seagram, Time
- ---------
Warner, Viacom
Medium Cap Index includes: Gaylords Entertainment, Int'l Family, KingWorld,
- ----------
Spelling Entertainment
3 Year Weekly
-------------
[Chart reflecting the following information:
Indexed Price
-------------
Weekly from Large Medium
3/10/95 to 3/6/98 BET Holdings Inc. Capitalization Capitalization S&P 400 Industrials
- ----------------- ----------------- -------------- -------------- -------------------
10-Mar-95 100.0 100.0 100.0 100.0
17-Mar-95 101.6 101.2 105.6 101.3
24-Mar-95 106.3 101.8 103.3 102.6
31-Mar-95 109.4 101.0 106.1 102.6
07-Apr-95 108.7 99.3 104.3 103.2
14-Apr-95 107.1 100.5 102.1 104.0
21-Apr-95 113.4 97.9 103.3 104.0
28-Apr-95 107.1 99.5 104.1 105.3
05-May-95 108.7 101.9 107.6 106.3
12-May-95 108.7 103.2 109.7 107.4
19-May-95 107.9 102.7 106.6 106.2
26-May-95 110.2 105.4 105.6 107.0
02-Jun-95 109.4 105.2 109.9 108.4
09-Jun-95 109.4 105.7 111.2 108.1
16-Jun-95 111.0 107.3 111.6 110.6
23-Jun-95 117.3 109.6 110.6 112.5
30-Jun-95 115.0 109.6 106.7 111.7
07-Jul-95 118.1 111.5 108.5 114.1
14-Jul-95 117.3 112.3 107.5 115.1
Note: IFE stock stopped trading effective 9/5/97 due to merger with News Corp.
23
[Chart continued from previous page]
21-Jul-95 105.5 115.2 107.1 113.7
28-Jul-95 111.0 114.3 106.7 115.5
04-Aug-95 114.2 116.0 108.0 114.4
11-Aug-95 115.0 114.2 112.7 113.7
18-Aug-95 115.7 116.4 117.3 114.3
25-Aug-95 115.7 113.5 118.7 114.0
01-Sep-95 118.9 112.8 120.0 114.5
08-Sep-95 120.5 112.6 120.8 116.4
15-Sep-95 123.6 113.5 124.5 118.1
22-Sep-95 119.7 113.5 122.0 118.0
29-Sep-95 126.0 112.7 120.4 118.0
06-Oct-95 119.7 112.1 117.0 117.3
13-Oct-95 123.6 110.6 118.8 117.3
20-Oct-95 137.0 110.5 117.9 118.3
27-Oct-95 132.3 106.1 113.7 117.0
03-Nov-95 140.2 107.9 115.2 119.2
10-Nov-95 131.5 108.4 117.3 119.8
17-Nov-95 136.2 108.7 118.8 121.4
24-Nov-95 144.9 112.6 118.2 121.4
01-Dec-95 148.0 111.1 119.5 122.4
08-Dec-95 148.8 110.0 118.2 124.9
15-Dec-95 144.9 109.4 116.6 124.5
22-Dec-95 140.2 105.9 114.8 123.5
29-Dec-95 144.1 105.6 115.8 124.0
05-Jan-96 148.0 106.1 115.4 124.3
12-Jan-96 144.9 105.9 112.7 121.2
19-Jan-96 157.5 105.3 114.0 123.1
26-Jan-96 148.0 107.2 115.7 125.5
02-Feb-96 162.2 108.1 119.4 128.4
09-Feb-96 181.1 109.6 122.1 132.2
16-Feb-96 190.6 110.3 121.0 130.9
[Chart continued from previous page]
23-Feb-96 193.7 112.6 121.8 133.4
01-Mar-96 194.5 110.7 119.9 130.1
08-Mar-96 196.9 110.1 115.0 128.6
15-Mar-96 198.4 111.6 115.0 131.0
22-Mar-96 185.0 111.3 119.1 132.1
29-Mar-96 175.6 109.4 119.7 131.0
05-Apr-96 174.8 109.4 116.9 133.2
12-Apr-96 167.7 106.6 114.7 129.8
19-Apr-96 180.3 109.4 117.1 131.4
26-Apr-96 184.3 109.3 117.4 133.4
03-May-96 186.6 107.8 116.1 131.4
10-May-96 185.8 107.2 117.6 132.9
17-May-96 173.2 109.7 117.2 136.9
24-May-96 170.1 111.0 120.2 138.8
31-May-96 167.7 108.4 118.4 137.2
07-Jun-96 178.0 108.1 116.5 138.1
14-Jun-96 173.2 106.8 117.6 136.6
21-Jun-96 166.9 107.5 114.7 136.9
28-Jun-96 166.1 108.0 116.6 136.9
05-Jul-96 155.9 105.2 116.0 134.4
12-Jul-96 162.2 100.3 112.2 131.8
19-Jul-96 166.1 98.0 109.3 130.1
26-Jul-96 159.1 96.5 106.6 129.4
02-Aug-96 148.0 101.5 112.7 134.6
09-Aug-96 153.5 100.9 110.6 134.6
16-Aug-96 161.4 100.4 111.5 135.0
23-Aug-96 162.2 100.1 110.9 135.4
30-Aug-96 161.4 99.1 109.4 132.4
06-Sep-96 160.6 99.1 114.6 133.3
13-Sep-96 169.3 103.2 111.5 138.2
20-Sep-96 168.5 102.7 108.9 140.1
[Chart continued from previous page]
27-Sep-96 182.7 104.4 105.9 139.4
04-Oct-96 184.3 106.6 110.9 142.3
11-Oct-96 181.9 106.9 108.6 142.4
18-Oct-96 182.7 105.9 105.7 144.3
25-Oct-96 188.2 103.1 106.7 141.9
01-Nov-96 182.7 104.2 104.9 141.9
08-Nov-96 171.7 107.2 103.0 147.5
15-Nov-96 173.2 108.8 106.3 149.0
22-Nov-96 174.8 110.3 106.2 151.0
29-Nov-96 174.8 110.4 103.6 152.4
06-Dec-96 178.7 106.7 104.0 149.3
13-Dec-96 168.5 105.3 102.8 147.4
20-Dec-96 168.5 107.9 103.5 151.0
27-Dec-96 174.0 106.7 104.5 152.7
03-Jan-97 184.6 105.8 109.2 151.3
10-Jan-97 175.6 105.9 106.6 153.9
17-Jan-97 175.6 105.9 109.9 157.0
24-Jan-97 159.1 105.1 114.5 155.5
31-Jan-97 165.4 105.2 114.9 158.7
07-Feb-97 166.9 106.3 119.2 158.7
14-Feb-97 185.0 109.4 113.4 162.0
21-Feb-97 190.6 108.4 109.9 160.7
28-Feb-97 185.0 107.7 107.3 158.8
07-Mar-97 178.0 111.7 113.8 160.7
14-Mar-97 189.0 109.4 110.1 159.2
21-Mar-97 178.0 108.4 106.3 157.4
28-Mar-97 188.2 106.7 110.1 156.0
04-Apr-97 190.6 105.3 111.6 153.0
11-Apr-97 185.8 102.2 109.0 148.8
18-Apr-97 182.7 107.1 110.0 155.2
25-Apr-97 180.3 104.0 108.0 155.2
[Chart continued from previous page]
02-May-97 182.7 108.3 115.8 164.1
09-May-97 176.4 108.4 113.3 166.8
16-May-97 180.3 109.1 122.1 168.0
23-May-97 194.5 110.9 125.8 171.8
30-May-97 202.4 108.9 131.5 172.0
06-Jun-97 210.2 110.0 140.9 173.4
13-Jun-97 212.6 114.3 145.9 180.6
20-Jun-97 209.4 114.4 143.6 181.3
27-Jun-97 207.9 111.8 145.6 179.4
04-Jul-97 209.4 111.8 147.1 185.2
11-Jul-97 208.3 109.9 148.4 185.6
18-Jul-97 220.1 108.5 148.4 185.9
25-Jul-97 229.9 111.1 150.0 190.3
01-Aug-97 245.7 113.0 152.6 191.2
08-Aug-97 247.2 111.4 153.2 189.4
15-Aug-97 250.4 108.1 155.1 182.0
22-Aug-97 249.6 109.4 151.9 186.9
29-Aug-97 248.0 108.6 153.2 181.8
05-Sep-97 250.4 111.1 154.4 187.7
12-Sep-97 331.1 111.1 97.3 186.3
19-Sep-97 333.1 114.5 100.2 191.2
26-Sep-97 333.5 114.6 102.6 190.0
03-Oct-97 333.9 117.0 109.2 193.6
10-Oct-97 347.2 115.5 114.2 194.4
17-Oct-97 339.8 114.3 113.0 189.1
24-Oct-97 336.6 116.0 115.8 188.3
31-Oct-97 320.9 111.7 111.9 183.2
07-Nov-97 322.8 113.7 113.5 185.8
14-Nov-97 326.0 115.3 119.5 186.9
21-Nov-97 331.5 118.4 124.8 193.2
[Chart continued from previous page]
28-Nov-97 335.8 115.7 120.3 190.9
05-Dec-97 329.9 115.6 120.5 196.0
12-Dec-97 333.1 115.8 120.1 189.5
19-Dec-97 337.8 116.3 119.8 188.0
26-Dec-97 339.4 116.3 119.7 186.1
02-Jan-98 345.3 120.2 93.1 193.9
09-Jan-98 341.7 116.9 92.0 185.2
16-Jan-98 336.2 120.2 95.6 192.3
23-Jan-98 333.9 122.0 94.2 192.5
30-Jan-98 347.2 124.4 98.5 197.0
06-Feb-98 343.3 127.6 97.2 203.0
13-Feb-98 336.6 131.8 95.7 204.4
20-Feb-98 348.0 133.8 95.8 207.1
27-Feb-98 343.7 135.0 100.6 210.4
06-Mar-98 344.5 135.8 100.2 211.4]
[Chart continued from previous page]
One Year Daily
--------------
[Chart reflecting the following information:
Indexed Price
--------------
Daily from Large Medium
3/13/97 to 3/12/98 BET Holdings Inc. Capitalization Capitalization S&P 400 Industrials
- -------------------- ----------------- -------------- -------------- -------------------
13-Mar-97 100.00 100.0 100.0 100.0
14-Mar-97 99.59 100.8 100.9 100.5
17-Mar-97 100.00 101.3 99.3 100.9
18-Mar-97 99.17 100.6 99.1 100.2
19-Mar-97 100.41 100.8 99.2 99.6
20-Mar-97 99.17 100.3 98.4 99.2
21-Mar-97 93.78 100.2 98.2 99.3
24-Mar-97 92.53 101.8 99.4 100.0
25-Mar-97 92.95 100.4 100.6 99.8
26-Mar-97 95.44 98.7 102.1 100.4
27-Mar-97 99.17 98.2 99.9 98.4
28-Mar-97 99.17 98.2 99.9 98.4
31-Mar-97 98.34 97.0 99.1 96.5
01-Apr-97 101.66 97.6 100.2 96.6
02-Apr-97 101.66 96.2 98.6 95.5
03-Apr-97 101.24 96.1 98.3 95.4
04-Apr-97 100.41 96.8 100.7 96.5
07-Apr-97 100.83 96.9 102.7 97.0
08-Apr-97 99.59 96.1 101.5 97.4
09-Apr-97 98.76 96.6 100.8 96.7
10-Apr-97 98.76 96.1 100.0 96.4
11-Apr-97 97.93 94.0 98.4 93.9
14-Apr-97 97.10 93.4 99.7 94.7
15-Apr-97 95.02 94.6 99.6 96.2
[Chart continued from previous page]
16-Apr-97 95.85 97.0 100.9 97.5
17-Apr-97 95.85 97.1 99.7 97.1
18-Apr-97 96.27 98.3 100.3 97.9
21-Apr-97 95.85 97.3 98.9 97.3
22-Apr-97 95.02 97.0 99.7 99.1
23-Apr-97 96.68 96.2 97.3 99.1
24-Apr-97 96.27 95.0 98.3 98.8
25-Apr-97 95.02 94.6 97.4 97.9
28-Apr-97 95.44 94.7 96.9 98.7
29-Apr-97 95.44 96.5 96.7 101.2
30-Apr-97 95.85 97.3 97.6 102.2
01-May-97 96.27 98.4 99.5 101.8
02-May-97 96.27 98.9 104.6 103.5
05-May-97 96.27 99.6 102.7 105.9
06-May-97 95.02 99.7 102.4 105.4
07-May-97 93.78 98.6 100.9 104.1
08-May-97 91.29 98.5 101.9 104.7
09-May-97 92.95 99.0 103.0 105.2
12-May-97 95.85 100.2 104.1 106.9
13-May-97 94.61 100.1 103.8 106.4
14-May-97 93.78 99.7 106.4 106.6
15-May-97 93.36 99.4 106.9 107.6
16-May-97 95.02 99.8 108.6 106.0
19-May-97 96.68 100.7 106.5 106.6
20-May-97 96.68 100.9 107.6 107.5
21-May-97 99.59 100.1 108.1 107.5
22-May-97 101.66 100.4 107.5 107.0
23-May-97 102.49 101.3 110.7 108.4
26-May-97 102.49 101.3 110.7 108.4
27-May-97 103.73 100.4 112.5 109.2
28-May-97 105.39 99.8 112.3 108.8
[Chart continued from previous page]
29-May-97 106.64 100.0 113.4 108.4
30-May-97 106.64 99.3 114.1 108.5
02-Jun-97 109.96 98.7 118.4 108.4
03-Jun-97 109.96 98.9 117.9 108.0
04-Jun-97 109.96 99.2 117.6 107.2
05-Jun-97 110.37 99.8 116.5 107.6
06-Jun-97 110.79 100.5 119.7 109.4
09-Jun-97 110.37 101.6 119.3 110.2
10-Jun-97 111.20 103.2 117.3 110.4
11-Jun-97 114.52 103.4 119.9 110.9
12-Jun-97 112.86 104.3 121.7 112.7
13-Jun-97 112.03 104.9 122.1 114.0
16-Jun-97 111.62 105.3 120.7 114.0
17-Jun-97 111.62 104.7 120.1 114.1
18-Jun-97 110.37 103.8 119.7 113.1
19-Jun-97 110.79 105.4 120.1 114.3
20-Jun-97 110.37 104.9 119.5 114.4
23-Jun-97 112.03 103.1 118.9 111.9
24-Jun-97 112.03 104.4 119.3 114.2
25-Jun-97 112.45 104.5 119.7 113.4
26-Jun-97 111.20 103.1 120.3 112.7
27-Jun-97 109.54 102.3 121.4 113.2
30-Jun-97 108.71 102.6 122.1 113.1
01-Jul-97 108.71 102.1 121.7 113.7
02-Jul-97 109.13 102.4 122.8 115.3
03-Jul-97 110.37 102.4 122.8 116.8
04-Jul-97 110.37 102.4 122.8 116.8
07-Jul-97 109.34 101.5 123.3 116.4
08-Jul-97 109.34 101.5 123.6 117.4
09-Jul-97 108.92 100.6 124.1 116.0
[Chart continued from previous page]
10-Jul-97 110.79 101.1 123.9 116.7
11-Jul-97 109.75 100.8 123.9 117.1
14-Jul-97 108.92 99.6 124.7 117.5
15-Jul-97 107.88 99.7 124.3 118.6
16-Jul-97 106.64 100.8 124.0 120.0
17-Jul-97 110.37 100.4 124.4 119.4
18-Jul-97 115.98 99.2 123.7 117.3
21-Jul-97 115.98 99.3 123.2 116.9
22-Jul-97 117.01 101.0 124.5 119.7
23-Jul-97 119.09 101.3 124.9 120.0
24-Jul-97 119.09 102.0 125.4 120.3
25-Jul-97 121.16 101.5 125.8 120.1
28-Jul-97 121.58 102.4 124.7 119.7
29-Jul-97 122.41 102.9 125.0 120.2
30-Jul-97 124.28 104.8 125.6 121.3
31-Jul-97 132.78 104.8 125.9 121.4
01-Aug-97 129.46 104.1 129.7 120.7
04-Aug-97 128.63 104.5 128.9 121.2
05-Aug-97 129.25 104.2 127.9 121.7
06-Aug-97 130.29 104.6 128.1 122.7
07-Aug-97 130.29 104.8 129.7 121.7
08-Aug-97 130.29 103.1 130.7 119.5
11-Aug-97 130.71 103.1 131.0 119.7
12-Aug-97 130.29 102.4 131.7 118.4
13-Aug-97 131.33 100.9 132.0 117.7
14-Aug-97 132.16 101.6 133.3 118.0
15-Aug-97 131.95 99.9 133.0 114.8
18-Aug-97 131.54 100.7 131.1 116.4
19-Aug-97 132.57 102.5 131.1 118.2
20-Aug-97 133.61 102.5 130.7 119.9
21-Aug-97 131.95 101.7 130.1 118.1
[Chart continued form previous page]
22-Aug-97 131.54 101.1 128.1 117.9
25-Aug-97 131.33 101.6 129.1 117.5
26-Aug-97 131.12 100.5 129.3 116.5
27-Aug-97 131.33 102.1 129.0 116.7
28-Aug-97 131.12 101.1 129.0 115.3
29-Aug-97 130.71 100.3 129.8 114.7
01-Sep-97 130.71 100.3 129.8 114.7
02-Sep-97 132.37 102.0 129.2 118.3
03-Sep-97 131.95 102.2 130.6 118.3
04-Sep-97 131.95 101.5 130.1 118.7
05-Sep-97 131.95 103.0 115.8 118.4
08-Sep-97 137.14 102.7 117.4 118.4
09-Sep-97 139.00 102.7 117.8 118.7
10-Sep-97 136.10 102.7 116.9 116.9
11-Sep-97 170.95 101.3 118.0 116.2
12-Sep-97 174.48 103.1 117.9 117.6
15-Sep-97 174.48 104.9 120.4 116.9
16-Sep-97 175.93 107.1 122.5 120.0
17-Sep-97 176.35 106.9 122.5 119.6
18-Sep-97 177.39 106.8 122.1 120.1
19-Sep-97 175.52 106.3 121.1 120.6
22-Sep-97 175.93 106.7 122.3 121.2
23-Sep-97 175.52 105.8 123.3 120.9
24-Sep-97 176.35 105.9 124.7 119.8
25-Sep-97 176.14 105.9 125.3 119.1
26-Sep-97 175.73 106.0 123.9 119.9
29-Sep-97 175.31 106.8 125.4 121.1
30-Sep-97 175.52 106.9 128.1 120.2
01-Oct-97 175.93 107.6 127.8 121.2
02-Oct-97 175.93 107.7 134.7 121.8
03-Oct-97 175.93 108.3 134.7 122.2
[Chart continued from previous page]
06-Oct-97 176.35 108.7 137.9 123.0
07-Oct-97 181.12 108.7 139.9 124.4
08-Oct-97 181.33 107.8 138.6 123.4
09-Oct-97 178.01 107.3 138.4 123.0
10-Oct-97 182.99 106.9 137.4 122.7
13-Oct-97 180.50 108.0 138.1 122.7
14-Oct-97 178.84 108.9 137.1 122.8
15-Oct-97 179.05 109.9 137.3 122.3
16-Oct-97 179.25 108.5 135.7 120.7
17-Oct-97 179.05 105.7 136.0 119.3
20-Oct-97 179.67 107.5 137.5 120.9
21-Oct-97 179.46 108.2 137.8 122.9
22-Oct-97 179.25 109.0 140.4 122.4
23-Oct-97 176.35 107.5 138.1 120.1
24-Oct-97 177.39 107.0 138.8 118.8
27-Oct-97 172.61 102.4 132.9 110.5
28-Oct-97 170.12 104.7 132.3 116.6
29-Oct-97 171.78 105.2 135.5 115.9
30-Oct-97 169.09 101.4 135.5 114.2
31-Oct-97 169.09 103.1 133.9 115.6
03-Nov-97 169.09 103.1 133.9 115.6
04-Nov-97 172.82 105.5 139.4 119.1
05-Nov-97 172.61 105.5 139.4 119.1
06-Nov-97 172.61 106.0 139.0 118.5
07-Nov-97 170.12 104.8 135.4 117.2
10-Nov-97 171.78 105.0 136.3 116.5
11-Nov-97 173.03 105.7 139.0 117.0
12-Nov-97 170.95 104.0 140.2 114.8
13-Nov-97 172.20 104.9 139.8 116.3
14-Nov-97 171.78 106.6 140.9 117.9
17-Nov-97 173.03 107.9 144.4 120.0
[Chart continued from previous page]
18-Nov-97 173.44 107.6 146.4 119.0
19-Nov-97 172.61 107.9 146.6 119.6
20-Nov-97 174.38 108.5 146.3 121.3
21-Nov-97 174.69 109.3 147.6 121.9
24-Nov-97 174.48 108.7 143.0 119.8
25-Nov-97 173.24 107.6 140.9 120.3
26-Nov-97 174.90 106.5 141.5 120.4
27-Nov-97 174.90 106.5 141.5 120.4
28-Nov-97 176.97 106.5 142.3 120.5
01-Dec-97 175.93 108.1 142.0 122.8
02-Dec-97 174.90 107.6 143.0 122.3
03-Dec-97 172.61 107.6 144.7 122.9
04-Dec-97 173.65 107.0 142.8 122.2
05-Dec-97 173.86 107.4 142.8 123.7
08-Dec-97 174.07 107.3 143.0 123.4
09-Dec-97 178.01 108.0 142.9 122.5
10-Dec-97 175.10 107.5 142.5 121.8
11-Dec-97 173.86 106.8 141.1 119.9
12-Dec-97 175.52 107.0 141.4 119.6
15-Dec-97 175.52 108.8 142.2 120.7
16-Dec-97 176.76 108.4 141.2 121.5
17-Dec-97 177.59 108.8 142.5 121.0
18-Dec-97 176.76 107.5 140.6 119.6
19-Dec-97 178.01 107.4 139.9 118.6
22-Dec-97 179.25 108.3 137.5 119.6
23-Dec-97 179.46 107.7 137.8 117.6
24-Dec-97 179.25 107.3 140.3 117.0
25-Dec-97 179.25 107.3 140.3 117.0
26-Dec-97 178.84 107.5 139.5 117.4
29-Dec-97 178.84 109.3 140.0 119.6
[Chart continued from previous page]
30-Dec-97 179.05 111.2 140.1 121.9
31-Dec-97 181.33 111.1 140.4 121.6
01-Jan-98 181.33 111.1 140.4 121.6
02-Jan-98 181.95 111.0 113.7 122.4
05-Jan-98 182.57 111.4 115.4 122.6
06-Jan-98 182.57 111.0 113.6 121.4
07-Jan-98 180.71 111.5 117.2 121.3
08-Jan-98 179.88 110.2 117.5 120.5
09-Jan-98 180.08 107.8 113.9 116.9
12-Jan-98 179.46 108.5 114.7 118.6
13-Jan-98 178.63 110.2 116.6 120.3
14-Jan-98 177.59 110.3 117.6 120.9
15-Jan-98 175.93 109.4 119.2 120.0
16-Jan-98 177.18 111.1 118.7 121.3
19-Jan-98 177.18 111.1 118.7 121.3
20-Jan-98 177.18 115.0 118.6 123.7
21-Jan-98 175.93 113.2 116.7 122.9
22-Jan-98 177.18 112.5 115.0 121.6
23-Jan-98 175.93 112.5 116.5 121.5
26-Jan-98 181.74 112.0 119.5 121.3
27-Jan-98 182.99 114.6 121.3 122.8
28-Jan-98 182.37 114.4 122.3 123.9
29-Jan-98 182.37 114.7 123.1 125.0
30-Jan-98 182.99 114.2 121.9 124.3
02-Feb-98 183.82 114.8 122.1 126.9
03-Feb-98 184.65 113.9 120.1 127.3
04-Feb-98 183.40 114.8 121.1 127.6
05-Feb-98 177.59 116.2 121.7 127.1
06-Feb-98 180.91 116.9 120.3 128.1
09-Feb-98 182.37 118.1 121.1 127.7
[Chart continued from previous page]
10-Feb-98 182.99 119.0 120.8 128.9
11-Feb-98 183.61 119.6 120.4 128.9
12-Feb-98 179.67 119.9 120.2 129.4
13-Feb-98 177.39 121.1 118.7 129.0
16-Feb-98 177.39 121.1 118.7 129.0
17-Feb-98 178.01 122.7 118.4 129.1
18-Feb-98 178.01 122.4 118.0 130.3
19-Feb-98 178.63 122.1 117.7 129.9
20-Feb-98 183.40 123.0 118.7 130.7
23-Feb-98 182.99 122.3 119.4 131.2
24-Feb-98 182.57 121.7 120.0 130.2
25-Feb-98 182.57 121.8 123.7 131.8
26-Feb-98 181.12 122.4 123.9 132.6
27-Feb-98 181.12 124.6 125.4 132.8
02-Mar-98 183.40 124.9 124.6 132.6
03-Mar-98 182.16 125.6 124.4 133.0
04-Mar-98 181.33 125.6 123.0 132.5
05-Mar-98 180.91 124.0 123.0 130.8
06-Mar-98 181.54 125.8 124.3 133.4
09-Mar-98 179.25 125.8 123.0 132.8
10-Mar-98 182.99 126.7 123.4 134.3
11-Mar-98 181.74 126.8 124.6 134.8
12-Mar-98 178.42 126.0 125.4 134.9]
[Goldman Sachs Logo]
PUBLIC MARKET VALUATION
Summary of Recent Research Analyst Commentary
Stock
Company/Analyst Report Date Price Recommendation Commentary
- --------------- ----------- ----- -------------- ----------
Donaldson, Lufkin & Jenrette/ July 2, 1997 $32.75 Buy - Fiscal third quarter
Dennis Leibowitz showed clear evidence
Karim Zia of improving operating
Erica Skala trends at the core cable
network
- BET's core programming
asset - the BET Cable
Network - is increasingly
attractive in the face of an
ever-shrinking pool of
independent cable
networks that can offer
broadscale coverage
- Upward revisions to the
core business operations
are slightly offset by start-
up losses related to new
businesses
Smith Barney/ May 14, 1997 $29.00 Outperform - Expansion is likely to
John Reidy have a slight negative
Spencer Grimes effect on fiscal 1998
earnings
- Strategy to more firmly
entrench well-known BET
name could be substantial
for shareholders
- Challenge for BET is in
the execution to repeat the
success of its cable
network
24
OWNERSHIP ANALYSIS
BET HOLDINGS, INC.
Class A % Class B % Class C %
------- --- ------- --- ------- ---
Directors and Executive Officers (a)
- -------------------------------------
Robert L. Johnson (b) 1,913,073 16.2% 0 0.0% 4,820,000 100.0%
William Gordon 135,000 1.1%
James A. Ebron 136,800 1.2%
Debra L. Lee 167,100 1.4%
Janis P. Thomas 167,000 1.4%
Other Directors and Executive Officers 672,542 5.7%
---------- ---------
Total Directors and Executive Officers 3,191,515 27.0% 4,820,000 100.0%
5% Holders (a)
- ---------------
Telecommunications, Inc. (c) 1,831,600 15.5% 1,831,600 100.0% 0 0.0%
Institutional Ownership (d)
- ----------------------------
GAMCO INVESTORS INC 1,134,450 9.6%
FW STRATEGIC PARTNERSHIP LP (e) 842,105 7.1%
CAPITAL RESEARCH & MGMT 662,100 5.6%
GABELLI FUNDS INC 527,500 4.5%
WANGER ASSET MGMT LP 440,000 3.7%
SANDLER, HARVEY 280,450 2.4%
FURMAN SELZ LLC 191,200 1.6%
MELLON BANK CORPORATION 172,200 1.5%
FIDELITY MGMT & RES CORP 151,300 1.3%
WESTPORT ASSET MGMT INC 116,700 1.0%
---------- ---------
Total Top 10 Institutional Owners 4,518,005 38.2%
Other Institutional Owners 848,633 7.2%
---------- ---------
Total Institutional Owners 5,366,638 45.4%
Total Shares Outstanding (f) 10,060,748 85.1% 1,831,600 100.0% 4,820,000.0 100.0%
Options (g) 1,761,595 14.9%
---------- ---------
Fully Diluted (F.D.) Shares Outstanding 11,822,343 100.0%
Total F.D. Shares Outstanding (All Classes) 18,473,943
(a) Based on proxy dated November 11, 1996.
(b) Based on most recent 13-D, dated September 10, 1997.
(c) The record holder of these shares is LMC BET, Inc., a wholly-owned
subsidiary of Liberty Media Corporation.
(d) Based on Spectrum Ownership Report, dated March 5, 1998, data as of December
31, 1997.
(e) Represents the 842,105 shares of Class A stock that Johnson transferred into
this entity on August 26, 1996.
(f) Based on 10-Q dated October 31, 1997.
(g) Based on 10-K dated July 31, 1997.
25
[Chart continued form previous page]
Total %
-------
36.4%
0.7%
0.7%
0.9%
0.9%
3.6%
----
43.4%
19.8%
6.1%
4.6%
3.6%
2.9%
2.4%
1.5%
1.0%
0.9%
0.8%
0.6%
----
24.5%
4.6%
----
29.0%
9.5%
64.0%
BOARD OF DIRECTORS
Name and Description Age Director Since
- ------------------------------------------------------------------------------- --- --------------
Robert R. Bennett 39 1997
Mr. Bennett serves as President and Chief Executive Officer of Liberty Media
Corporation. Mr. Bennett also serves as Executive Vice President of Tele-
Communications, Inc.
Robert L. Johnson 50 1991
Mr. Johnson founded BET, the Company's primary operating subsidiary, in 1979.
Mr. Johnson has served as President, Chief Executive Officer and a director of
BET since its creation. Since 1991, Mr. Johnson has served as the Chairman of
the Board of Directors. Since 1991, Mr. Johnson also served as Chief Executive
Officer of the Company and has served as its President from 1991 until March
1996. Mr. Johnson is also Chairman of District Cablevision, Inc., a Washington,
D.C. cable system operating company which he founded in 1980, and has served as
a director of Liberty Media Corporation since December 1991. Since January 1994,
Mr. Johnson has served as a director of Hilton Hotels Corporation.
Sheila Crump Johnson 47 1994
Since September 1992, Mrs. Johnson has served as Executive Vice President,
Corporate Affairs of the Company. From September 1991 to September 1992, she
served as Vice President, Corporate Affairs of the Company. Since 1979 she has
served as director of BET and since 1990, as Vice President, Corporate Affairs
of BET. Prior to 1990, Mrs. Johnson was a lecturer and author in the area of
early childhood music education. Robert L. Johnson and Sheila Crump Johnson are
married to one another.
Delano E. Lewis* 58 1994
Mr. Lewis has been President and Chief Executive Officer of National Public
Radio since January 1994. From January 1990 to January 1994, Mr. Lewis served as
Chief Executive Officer of C&P Telephone Company, a subsidiary of Bell Atlantic.
From July 1988 to January 1990, Mr. Lewis was President of C&P Telephone
Company. Mr. Lewis also serves as a director of Colgate Palmolive, GEICO
Insurance Company, Apple Computer, Inc. and Halliburton Company.
*Member of the Special Committee
[Goldman Sachs Logo]
26 Continued
BOARD OF DIRECTORS
Name and Description Age Director Since
- -------------------------------------------------------------------------------- --- --------------
John C. Malone 55 1991
Since 1973, Dr. Malone has served as President and Chief Executive Officer of
TCI the largest owner/operator of cable television systems in the United States.
Dr. Malone has also served as the Chairman and a director of Liberty Media
Corporation since 1991, and is a director of a variety of other affiliates of
TCI, the Bank of New York and Discovery Communications, Inc. Dr. Malone has
served as a director of BET since 1979 and as its Chairman from 1979 to 1991.
Denzel Washington 41 1996
In September 1996, Mr. Washington was elected by the Company's Board to fill a
vacancy created by the resignation of Mr. Jeffrey L. Bewkes, who resigned from
the Board in December 1995 following the Company's repurchase of all of the
Class A and Class B Common Stock beneficially owned by Time Warner Inc. Mr.
Washington is an Academy Award winning and critically acclaimed feature film
actor. Mr. Washington also serves as director of the Sundance Institute.
Herbert P. Wilkins, Sr. 54 1993
Since 1990, Mr. Wilkins has been the President of W&J Management Company, Inc.,
which manages a group of minority oriented venture capital funds, including
Syndicated Communications Inc., Syncom Capital Corporation, and Syndicated
Communications Venture Partners II, L.P. From 1977 to 1989, Mr. Wilkins served
as President of Syndicated Communications, Inc. He has also been director of
District Cablevision Inc. since 1982. Of the funds managed by W&J Management
Company, Inc., Syndicated Communications Inc. is a shareholder of District
Cablevision, Inc., ("DCT").
[Goldman Sachs Logo]
27 Continued
ANALYSIS AT VARIOUS PRICES
BET Holdings, Inc.
($ in thousands except per share data)
Price Per Share $ 63.00
----------
Fully Diluted Shares Outstanding 18,031
Equity Consideration (a) 1,135,936
Net Debt 50,868
Levered Consideration 1,186,804
Value per Subscriber 50,000 $ 23.74
Levered Multiple of Sales
1997A 154,226 7.7x
LTM (b) 160,608 7.4x
1998E 180,898 6.6x
Levered Multiple of EBITDA - Consolidated
1997A 62,435 19.0x
LTM (b) 66,159 17.9x
1998E 92,113 12.9x
Levered Multiple of EBITDA - Cable Network
1997A 68,938 17.2x
LTM (b) 73,317 16.2x
1998E 96,397 12.3x
1998 6 Months Annualized (c) 84,008 14.1x
Levered Multiple of EBIT - Consolidated
1997A 53,775 22.1x
LTM (b) 57,107 20.8x
1998E 82,120 14.5x
Levered Multiple of EBIT - Cable Network
1997A 63,719 18.6x
LTM (b) 67,706 17.5x
1998E 90,187 13.2x
Premium to Unaffected Price $ 40.00 58%
Premium to Original Offer Price $ 48.00 31%
Premium/(Discount) to 3/12/98 Price $ 53.75 17%
Premium/(Discount) to Latest Peak $ 55.88 13%
(a) Does not tax effect options
(b) Latest twelve months as of October 31, 1997
(c) Annualized EBITDA includes $3.0 million of EBITDA due to subscriber rate
card increase effective January 1, 1998
28
ANALYSIS OF BET CABLE NETWORK
Implied Discount Rates
Price per Share $63.00
Fully Diluted Shares Outstanding 18 mm
------
Equity Value $1,136 mm
Value of Non-Core 70 mm
------
Cable Network Value $1,066 mm
Exit Multiple of 2002 EBITDA
------------------------------------
Projections 2002 EBITDA (mm) 9x 9.5x 10x 10.5x 11x
- --------------------------------------------------------------------------------
Management $203.3 21.4% 22.9% 24.2% 25.6% 26.8%
Management-Adjusted (a) 163.2 14.6 15.9 17.2 18.5 19.7
Salomon Smith Barney 153.1 12.8 14.2 15.5 16.7 17.9
- --------------------------------------------------------------------------------
(a) EBITDA margin kept constant at 58%.
[Goldman Sachs Logo]
29
ANALYSIS OF BET CABLE NETWORK
Implied Discount Rates at Varying EBITDA Growth RAtes
EBITDA Implied 2002 Exit Multiple of 2002 EBITDA
--------------------------------------------------------
Growth EBITDA (mm) 9x 9.5x 10x 10.5x 11x
- --------------------------------------------------------------------------------
12% $121.5 5.6% 6.9% 8.1% 9.3% 10.4%
14 132.7 8.1 9.4 10.6 11.8 13.0
16 144.8 10.6 11.9 13.1 14.4 15.6
18 157.7 13.0 14.4 15.7 16.9 18.1
20 171.5 15.5 16.9 18.2 19.5 20.7
22 186.3 18.0 19.4 20.7 22.1 23.3
24 202.1 20.5 21.9 23.3 24.6 25.9
- --------------------------------------------------------------------------------
Note: Assuming share price of $63.00 and 18mm shares outstanding. Non-core
businesses assumed to be worth $70mm.
[Goldman Sachs Logo]
30
MARKET VALUATION OF SELECTED ENTERTAINMENT COMPANIES
($ in millions except per share amounts) [Goldman Sachs Logo]
Company Price % 52 Wk Market Capitalization P / E Ratio (b) Sales Multiple (c)
-----------------------------------------------------------------------------
Name 03/12/98 High Equity Levered Adjusted (a) LTM 1998E 1999E LTM 1998E 199E
- --------------------------------------------------------------------------------------------------------------------------
Large Capitalization
- --------------------
Disney $ 105.94 92.2% $74,991 $85,742 $84,542 36.5x 32.7x 28.0x 3.9x 3.6x 3.2x
EMI Group 16.38 70.6% 7,514 8,109 8,109 18.8 18.2 16.2 1.5 1.4 1.2
News Corp (e) 26.63 96.2% 25,565 31,568 20,052 22.6 19.7 15.5 2.0 1.9 1.8
Polygram 51.81 82.4% 9,377 9,581 9,435 19.2 21.0 18.4 2.0 1.7 1.6
Seagram 39.05 93.2% 13,877 18,583 14,489 49.4 42.5 34.9 1.2 1.1 1.1
Time Warner (d) 70.31 98.8% 44,420 66,363 63,803 NM NM NM 2.6 2.4 2.2
Viacom 48.13 99.2% 17,150 28,124 25,824 NM NM NM 2.0 1.8 1.6
Mean 90.4% 29.3x 26.8x 22.6x 2.2x 2.0x 1.8x
Median 93.2% 22.6 21.0 18.4 2.0 1.8 1.6
Medium Capitalization
- -----------------------
BET Holdings $ 53.75 96.6% $ 965 $ 1,016 $ 1,016 33.2x 25.8x 21.9x 6.3x 5.4x 4.6x
Gaylord
Entertainment 31.00 93.2% 1,056 1,431 1,431 33.3 25.8 23.8 1.6 1.4 1.2
King World 28.06 94.8% 1,037 485 485 7.3 7.2 6.4 0.7 0.7 0.6
Spelling
Entertainment 8.44 91.8% 776 1,063 1,063 NM NM NM 1.8 NA NA
Mean 94.1% 24.6x 19.6x 17.4x 2.6x 2.5x 2.1x
Median 94.0% 33.2 25.8 21.9 1.7 1.4 1.2
Notes
(a) Defined as Levered Market Cap - Estimated Non-EBITDA Assets (Source:
Goldman Sachs Research)
(b) EPS estimates are from IBES and are calendarized except EMI Group
(c) Using Adjusted Market Capitalization as a Multiple of Sales and EBITDA
(d) Time Warner numbers include Time Warner Entertainment
(e) Non-EBITDAA Assets include BSkyB, Seven Network Ltd., Independent
Newspapers, Primestar, StarTV, Liberty/Fox Sports Venture, Fox Kids Worldwide,
Ansett Airlines, etc.
31
[Chart continued from previous page]
EBITDA Multiple(c) IBES 5 Yr 98 P/E to
------------------
LTM 1998E 1999E Growth Growth
--------------------------------------------
17.2x 14.4x 12.8x 18.0% 1.6x
10.3 9.4 8.3 NA NA
13.9 12.2 10.7 13.8% 1.1
15.4 12.4 11.0 10.0% 1.8
9.6 9.4 9.2 15.0% 2.3
12.8 11.5 10.4 12.0% NM
15.7 11.7 10.1 16.5% NM
13.6x 11.6x 10.4x 14.2% 1.7x
13.9 11.7 10.4 14.4% 1.7
15.4x 13.3x 9.7x 20.0% 1.1x
7.7 6.2 5.5 NA NA
2.5 2.4 2.2 8.0% 0.8
NM NA NA NA NA
8.5x 7.3x 5.8x 14.0% 1.0x
7.7 6.2 5.5 14.0% 1.0
SELECTED BASIC CABLE PROGRAMMING TRANSACTIONS SINCE 1990
Percent Impl. Value FTE Subs LTM
Date Acquiror/Target Sold (mil.) (a)(mil.) EBITDA Mutiple
Mature Networks
10/97 Home Shopping Network/USA Network 100.0% $4,100.0 119.0 22.9(m)
9/97 Seagram's Universal/USA Networks 50.0% $3,400.0 119.0 N.A.
6/97 Fox & Liberty/Rainbow Programming 40.0% $2,125.0 55.0 21.3x(m)
4/97 Fox Kids/Intl. Family Entertainment 100.0 1,866.0 68.6 24.9(d)
3/97 Cablevision/MSG (from ITT)(e) 50.0 690.1 5.4(e) N.A.
2/97 Westinghouse CBS/TNN and CMT(f) 100 & 67% 1,485.0 107.0(f) 16.6
2/97 Comcast-Disney/E! (from TWE) 58.4 550.0 42.7 19.3
10/96 Time Warner/TBS 80.4 9,900.0 N.M. N.A.
1996-1997 Mean 21.0
1996-1997 Median 21.3
3/94 Cap Cities-Hearst/Lifetime 33.3 952.8 58.8 14.2
9/93 Cablevision/American Movie Classics 50.0 390.0 46.0 15.5
6/93 Cap Cities-Hearst/H&E 12.5 400.0 56.3 N.A.
5/91 CNBC/FNN 100.0 150.5 37.0(g) N.A.
11/90 Hearst/ESPN 20.0 875.0 57.1 N.A.
1/90 Intl. Family Entertainment/Family 100.0 294.0 48.0 N.A.
Channel 1990-1995 Mean 14.9
1990-1995 Median 14.9
Mean 19.2
Median 19.3
Development Networks
12/97 TCI Music/The Box Worldwide 100.0% $ 38.3 40.0 12.2x
8/97 Disney/Classic Sports 100.0 175.0 11.0 N.A.
6/97 Paxson Communications/Travel Channel 100.0 75.0 22.9(i) N.A.
7/96 News Corp/The Golf Channel 33.0 150.0 3.8(j) N.A.
5/96 TV Food Network 100.0 117.5 16.5 N.A.
3/96 Flextech/The Family Channel (UK) 61.0 83.0 4.0 N.A.
10/95 Liberty/fX 50.0 400.0 25.0 N.A.
7/95 Liberty/Faith & Values 49.0 61.2 24.2 N.A.
7/95 NBC/Court TV 16.7 120.0 22.2 N.A.
10/93 Concept Communications/Nostalgia
Network 32.0 35.9 14.7 N.A.
10/92 Liberty Sports/SportChannel Chicago 25.0 63.6 2.2 N.A.
1/92 Landmark/Travel Channel 100.0 50.0 11.5 N.A.
8/91 Viacom/MTV Europe (Maxwell) 50.0 130.0 29.5 N.A.
5/91 Discovery Channel/The Learning
Channel 100.0 31.0 14.9 N.A.
11/90 Flextech/Children's Channel(k) 25.0 12.8 2.3 N.A.
8/90 TCI/Video Juke Box 9.6 52.1 9.5 N.A.
7/90 Gaylord/Country Music TV 100.0 36.0 11.5 N.A.
1/90 Nostalgia Television (target) 24.0 42.6 8.2 N.A.
Mean N.A.
Median N.A.
Home Shopping Networks
12/96 Silver King/Home Shopping Network 80.1 1,270.0 51.4 N.A.
2/95 Comcast-Liberty/QVC 65.7 1,960.0 50.0 11.3
Mean 11.3
Median 11.3
32
[Chart continued from previous page]
FYE EBITDA Revenue FYE EBITDA Value/
Multiple (b) Multiple (b) Margin Sub
18.4x (m) 3.4x (m) 18.9% $34.45
19.0x (m) 4.7x (m) N.A. 28.57
15.6x (c) 2.6x 16.4% $38.64
22.9 (d) 5.9 (d) 25.8% 24.30
15.1 (e) N.A. N.A. N.M.
12.3 (f) 3.2 (f) 26.0% 13.88
15.2 4.8 31.8% 12.88
16.4 3.4 20.7% N.M.
16.6 3.9 25.45
15.6 3.4 26.44
11.6 4.2 36.2% 16.20
13.9 4.3 30.9% 8.48
11.8 2.3 19.5% 7.10
16.7 (h) 1.9 (h) 11.4% 4.07
10.3 1.5 14.6% 15.32
10.6 3.0 28.3% 6.13
12.5 2.9 9.55
11.7 2.7 7.79
14.7 3.4 17.50
15.1 3.3 14.60
N.A. 1.8x N.A. $ 0.96
N.A. N.A. N.A. 15.91
N.A. 4.0 N.A. 3.28
N.A. 4.1 N.A. 40.00
N.A. 4.1 N.A. 7.12
N.A. 5.4 N.A. 20.75
N.A. N.A. N.A. 16.00
N.A. 1.9 N.A. 2.53
24.0 2.3 9.6% 5.41
N.M. 3.0 N.A. 2.44
5.7 N.A. N.A. 28.91
N.A. 7.9 N.A. 4.35
N.A. N.A. N.A. 4.41
6.9 1.5 21.7% 2.08
N.A. N.A. N.A. 5.57
N.M. N.A. N.A. 5.48
N.M. 7.2 N.A. 3.13
N.A. 5.5 N.A. 5.20
12.2 4.1 9.64
6.9 4.1 5.30
9.6 1.0 10.4% 24.69
7.6 (l) 1.7 22.4% 35.86
8.6 1.4 30.27
8.6 1.4 30.27
[Chart continued from previous page]
Source: Kagan, news articles, and public documents.
(a) Full-time equivalent subscribers.
(b) Multiples of projected year-ahead cash flow, revenues.
(c) Includes any related D&A.
(d) Not adjusted to exclude EBITDA and estimated values for all non-Family
Channel businesses, including MTM and FitTV. With adjustments, transaction
represents 15.8x LTM and 15.2x 1997E EBITDA.
(e) Multiples represent Kagan estimates for value of MSG network and exclude
facilities and sports teams. Kagan shows value per sub at $128.
(f) Westinghouse agreed to purchase TNN and the reamining 67% domestic unit of
CMT for a total of $1.55 billion, including $65 mn of working capital. Values
split between TNN and CMT per Kagan estimates.
(g) FTE subs at time of FNN/CNBC merger 5/91.
(h) Multiples of CNBC 1992 cash flow and revenues.
(i) 1996 estimate. Company lost money on an operating basis.
(j) Subscriber figure is an estimate for year end 1996.
(k) Asumes an exchange rate of 1.96 dollars to the pound sterling.
(l) Excludes estimated $25 million cash flow loss, attributed to start-up
losses.
(m) Wall Street Estimates
(n) Based on 1997 $12 million projected cash flow, $25 million advertising
revenue and $33 million subscriber revenue estimates from Paul Kagan Associates
33
SELECT COMPARABLE TRANSACTIONS ANALYSIS
($000 except per share data)
December Management 6 Month FYE 98
Implied value of Projections for FYE 98 Projections Annualized(a)
-----------------------------------------------------------------------------------------
BET Holdings,
applying multiplies CMT/TNN Forward Multiple 12.3x 12.3x
from the IFE and 1998 EBITDA (Management Projections) 96,397 N.A.
CMT/TNN 1998 EBITDA (6 Month Annualized (a)) N.A. 84,008
transactions to Core Cable Network Value 1,185,683 1,033,298
BET's core cable Other Business 70,000 70,000
network and valuing Option Proceeds 29,000 29,000
BET's other Net Debt (50,868) (50,868)
businesses at $70 Total Equity Value 1,233,815 1,081,430
million. Fully Diluted Shares 18,500 18,500
Equity Value Per Share 66.69 58.46
IFE LTM Multiple 15.8x 15.8x
LTM Core EBITDA(Q1 98) 73,100 73,100
Core Cable Network Value 1,154,980 1,154,980
Other Business 70,000 70,000
Option Proceeds 29,000 29,000
Net Debt (50,868) (50,868)
Total Equity Value 1,203,112 1,203,112
Fully Diluted Shares 18,500 18,500
Equity Value Per Share 65.03 65.03
(a) Annualized EBITDA includes 3.0 million of EBITDA due to
subscriber rate card increases effective January 1, 1998.
[Goldman Sachs Logo]
34
COMPARISON OF SELECTED BASIC CABLE
PROGRAMMING TRANSACTIONS
1997 YTD
[GOLDMAN SACHS LOGO]
MULTIPLE OF FYE EBITDA (A)
--------------------------
[BAR GRAPH REFLECTING THE FOLLOWING INFORMATION:
FOX & LIBERTY/RAINBOW 15.6X
SEAGRAM/USA NETWORK 19.0X (C)
FOX KIDS/IFE 15.2X (B)
HSN/USA NETWORK 18.4X (C)
CABLEVISION/MSG (FROM ITT) 15.1X
WESTINGHOUSE CBS/TNN AND CMT 12.3X
COMCAST-DISNEY/E! (FROM TWE)
MEDIAN = 15.8X]
MULTIPLE OF REVENUE (A) VALUE PER SUBSCRIBER
----------------------- --------------------
[BAR GRAPH REFLECTING THE FOLLOWING [BAR GRAPH REFLECTING THE
INFORMATION: FOLLOWING INFORMATION:
FOX & LIBERTY/RAINBOW 2.6X FOX & LIBERTY/RAINBOW $38.64
SEAGRAM/USA NETWORK 4.7X (C) HSN/USA $34.45
HSN/USA 3.4X (C) SEAGRAM/USA NETWORK $28.60
FOX/IFE 5.9X FOX/IFE $24.30
WESTINGHOUSE CBS/TNN AND CMT 3.2X WESTINGHOUSE CBS/TNN AND CMT $13.90
COMCAST-DISNEY/E! (FROM TWE) 4.8X COMCAST-DISNEY/E! (FROM TWE) $12.90
MEDIAN = 4.1X] MEDIAN = 26.44]
(a) Multiplt of projected year-ahead cash flow, revenues.
(b) Adjusted to exclude EBITDA and estimated values for all non-Family Channel
businesses. Without adjustments, transaction represents 22.9x 1997e EBITDA.
(c) Wall Street Estimates.
35
WESTINGHOUSE'S ACQUISITION OF GAYLORD'S INTEREST IN TNN AND THE DOMESTIC PORTION
OF CMT ($ AND SUBSCRIBERS IN MILLIONS)
Description of Transaction
--------------------------
Westinghouse Electric Corp/CBS signed a definitive agreement to acquire, through
merger, Gaylord Entertainment Co.'s The Nashville Network (TNN) and the
remaining 67% of Country Music Television (CMT) (domestic only) that they did
not already own, as well as about $50 million in working capital.
Transaction Details Revenues(a)
------------------- -----------
[Bar graph reflecting the following
information:
Announcement Date: February 10, 1997
Purchase Price: $1.55 billion CMT TNN
--- ---
Form of Consideration: All stock 1994 $27.7 $195.8
Method of Financing: NA 1995 $34.6 $216.5
1996E $54.1 $258.5
1997E $67.0 $292.1
3-YEAR CAGR
-----------
CMT=34.2%
TNN=14.3%]
Subscribers
-----------
[Bar graph reflecting the following
Multiple of Enterprise Value (a) information:
- --------------------------------
LTM 97E 97E
EBITDA SUBSCRIBERS EBITDA REVENUES CMT TNN
------ ----------- ------ -------- --- ---
Kagan 13.5X $13.93 12.3X 3.2X 1994 $24.9 $58.7
Public Filing / 16.6X N.A. N.A. N.A. 1995 $31.7 $64.4
Merrill Lynch 1996E $36.9 $68.9
Fairness opinion 1997E $42.5 $72.4
3-YEAR CAGR
-----------
CMT=20.9%
TNN=7.8%]
CONTEXT OF TRANSACTION
- ----------------------
- -- Historically, CBS's previous management was bearish on cable, viewing it as
a trend that would eventually disappear. As their predictions proved wrong
going forward, Westinghouse was determined to get back into the cable
business (it ran Group W Cable until 1985) in order to successfully compete
with the likes of Disney/ABC/Cap Cities' ESPN and GE/NBC's MSNBC and CNBC.
- -- Although TNN and CMT has experienced significant growth during the boom of
the country-western theme, current market conditions show much slower growth
in country album sales. CBS's response to this is that the networks do not
only depend on music sales; the networks glorify a country-western
lifestyle.
- -- CMT International was not part of the sale. Westinghouse, however, did
transfer to Gaylord its 33% interest in CMT International as additional
consideration.
- -- Prior to transaction Westinghouse received royalties from TNN and CMT for
distribution, marketing and sales services
- -- 33% of net revenues for TNN
- -- 10% of net revenues for CMT
(a) Multiples and projections based on Morgan Stanley research, June 1996.
Subscribers include total domestic subscribers.
36
[Goldman Sachs Logo]
SUMMARY OF FOX KIDS WORLDWIDE'S ACQUISITION OF INTERNATIONAL FAMILY
ENTERTAINMENT
Transaction Description
- -----------------------
- -- Fox Kids Worldwide ("Fox Kids") acquired the Class A and B Shares of
International Family Entertainment, Inc. ("IFE" or the "Company") at a price
of $35 per share in cash. Liberty Media, the holder of all C Shares,
received newly-issued preferred stock issued by Fox Kids, and also based on
a price of $35 per share.
- -- The acquisition included all the assets of IFE including The Family Channel,
the MTM Studio and Library ("MTM"), the FiT TV Channel, and Calvin Gilmore.
The transaction represents an equity value of approximately $1.7 billion and
an enterprise value of $1.9 billion.
- -- The price of $35 per share represents a premium of approximately 9% over the
previous day closing price and a premium of approximately 60% to the 90-day
average stock price.
Stock Price History
- -------------------
[Chart reflecting the following information:
Indexed Price
-------------
International
Daily from BET Time Family Liberty
6/10/96 to Holdings Disney News Corp. Warner Viacom Entertainment Media S&P 500
- ------------ -------- ------ ---------- ------------- ------ -------------------- -------
6/10/97
- -------
10-Jun-96 28.250 62.375 22.125 41.375 37.375 18.125 18.917 672.160
11-Jun-96 28.000 62.375 22.125 40.875 37.875 18.625 18.833 670.970
12-Jun-96 27.875 62.375 21.875 40.375 37.750 18.250 18.667 669.040
13-Jun-96 28.000 61.750 22.000 40.375 37.875 18.625 18.417 667.920
14-Jun-96 27.500 61.500 22.000 40.750 37.375 18.125 18.833 665.850
17-Jun-96 27.125 62.000 22.625 40.250 36.875 18.375 18.833 665.160
18-Jun-96 27.000 61.000 23.125 40.125 37.875 18.500 18.167 662.060
19-Jun-96 26.750 61.125 23.250 39.625 38.000 17.875 18.750 661.960
20-Jun-96 26.375 61.750 23.250 39.125 38.250 18.250 18.667 662.100
21-Jun-96 26.500 63.000 23.125 39.375 38.750 18.625 18.500 666.840
24-Jun-96 28.500 62.250 23.250 39.125 38.250 18.750 18.583 668.850
25-Jun-96 27.875 63.250 23.500 39.000 38.000 19.125 18.750 668.480
26-Jun-96 27.500 62.375 23.125 38.750 37.625 18.625 18.500 664.390
27-Jun-96 26.625 63.125 22.875 39.000 37.875 18.500 18.000 668.550
28-Jun-96 26.375 62.875 23.500 39.250 38.125 18.500 17.667 670.630
37
[Chart continued from previous page]
1-Jul-96 26.125 62.250 23.500 39.500 38.250 18.375 17.583 675.880
2-Jul-96 25.750 61.250 23.250 39.625 38.125 18.375 18.000 673.610
3-Jul-96 24.750 61.000 23.125 39.750 37.750 18.500 17.833 672.400
4-Jul-96 24.750 61.000 23.125 39.750 37.750 18.500 17.833 672.400
5-Jul-96 24.750 59.375 23.375 38.875 37.000 18.250 17.333 657.440
8-Jul-96 24.750 59.000 23.125 38.125 36.500 18.250 16.917 652.540
9-Jul-96 24.875 57.500 23.250 38.000 35.750 18.250 16.917 654.750
10-Jul-96 25.000 58.125 23.125 37.375 34.750 17.375 16.500 656.060
11-Jul-96 25.750 56.125 22.250 36.125 33.500 17.500 16.083 645.670
12-Jul-96 25.750 56.875 22.625 35.625 34.000 17.250 16.667 646.190
15-Jul-96 25.500 54.875 22.125 33.875 32.375 17.250 15.833 629.800
16-Jul-96 25.875 56.000 22.000 33.250 31.625 15.875 14.500 628.370
17-Jul-96 26.500 56.000 20.625 36.625 33.750 16.750 15.583 634.070
18-Jul-96 26.625 57.250 20.500 37.125 35.500 16.625 16.583 643.560
19-Jul-96 26.375 57.375 20.375 35.750 34.750 16.375 16.583 638.730
22-Jul-96 25.875 56.000 19.875 34.250 35.000 16.000 15.667 633.770
23-Jul-96 25.000 55.500 19.250 33.875 35.375 15.750 14.917 626.870
24-Jul-96 24.625 54.750 18.875 34.000 33.500 15.375 14.250 626.650
25-Jul-96 25.250 54.375 19.375 34.250 33.875 15.750 14.500 631.170
26-Jul-96 25.250 54.125 19.625 35.250 34.500 16.125 14.750 635.900
29-Jul-96 24.875 53.375 19.375 34.750 34.125 15.500 14.750 630.910
30-Jul-96 24.875 55.250 19.625 35.000 34.250 16.125 14.750 635.260
31-Jul-96 24.500 55.625 19.875 34.875 34.250 16.125 14.667 639.950
1-Aug-96 23.875 57.375 20.500 35.750 34.125 17.000 15.417 650.020
2-Aug-96 23.500 58.000 20.625 36.500 34.375 17.750 16.042 662.490
5-Aug-96 24.125 58.375 20.250 36.375 34.750 18.500 15.750 660.230
6-Aug-96 24.375 59.000 20.250 36.500 35.000 17.500 15.667 662.380
7-Aug-96 24.000 58.375 20.250 35.875 35.375 17.375 15.833 664.160
8-Aug-96 24.000 57.500 20.500 35.500 35.250 17.500 15.833 662.590
9-Aug-96 24.375 57.125 20.375 35.375 34.000 17.500 16.375 662.100
12-Aug-96 24.375 58.500 20.250 35.625 34.125 17.375 16.417 665.770
[Chart continued from previous page]
13-Aug-96 25.375 58.000 20.125 35.500 33.375 17.500 16.417 660.200
14-Aug-96 25.750 58.125 20.125 35.000 33.125 18.250 16.459 662.050
15-Aug-96 25.750 57.875 20.250 34.625 32.375 18.500 17.083 662.280
16-Aug-96 25.625 58.125 20.250 34.500 33.125 18.000 17.500 665.210
19-Aug-96 25.625 58.000 20.500 34.500 33.625 18.375 18.333 666.580
20-Aug-96 25.500 57.250 20.250 34.250 33.750 18.125 18.000 665.690
21-Aug-96 25.625 57.875 20.250 33.875 33.125 18.000 18.250 665.070
22-Aug-96 25.750 58.125 20.063 34.250 33.125 17.875 18.167 670.680
23-Aug-96 25.750 58.375 20.875 34.000 33.000 18.000 17.917 667.030
26-Aug-96 26.000 59.375 20.750 34.125 33.000 18.125 17.667 663.880
27-Aug-96 26.000 59.000 20.875 34.250 32.625 18.250 17.750 666.310
28-Aug-96 25.875 58.250 21.125 34.500 31.875 18.000 17.583 664.810
29-Aug-96 25.750 57.750 21.000 33.750 31.500 18.125 17.417 657.400
30-Aug-96 25.625 57.000 21.250 33.375 31.250 18.000 17.583 651.990
2-Sep-96 25.625 57.000 21.250 33.375 31.250 18.000 17.583 651.990
3-Sep-96 25.500 57.000 21.250 33.000 30.750 17.875 17.500 654.720
4-Sep-96 25.375 56.750 21.250 32.750 30.375 17.750 17.500 655.610
5-Sep-96 25.250 55.625 21.000 32.125 32.375 18.000 17.417 649.440
6-Sep-96 25.500 57.000 21.250 33.500 33.000 18.625 17.583 655.680
9-Sep-96 26.000 58.250 21.500 33.625 33.250 18.500 17.500 663.760
10-Sep-96 26.500 57.875 21.250 34.625 34.250 18.250 17.667 663.810
11-Sep-96 26.625 58.625 21.125 35.125 34.125 18.000 17.833 667.280
12-Sep-96 26.625 60.500 21.000 37.000 33.625 17.875 18.167 671.150
13-Sep-96 26.875 60.750 21.125 37.750 35.000 17.625 18.709 680.540
16-Sep-96 26.750 60.250 21.250 37.375 35.750 17.500 18.333 683.980
17-Sep-96 26.625 61.125 21.125 37.625 35.125 17.500 18.500 682.940
18-Sep-96 26.250 61.250 20.875 37.375 34.750 17.375 18.500 681.470
19-Sep-96 26.250 63.500 21.125 37.375 34.375 17.250 18.500 683.000
20-Sep-96 26.750 63.125 20.750 37.125 34.250 17.250 18.792 687.030
23-Sep-96 27.500 63.625 20.500 36.750 33.875 17.000 18.750 686.480
[Chart continued from previous page]
24-Sep-96 27.750 62.750 20.500 36.750 33.375 16.875 18.500 685.610
25-Sep-96 29.750 62.625 20.875 37.000 34.125 15.750 18.250 685.830
26-Sep-96 29.000 62.000 20.875 37.250 34.250 16.250 18.667 685.860
27-Sep-96 29.000 63.000 20.875 37.625 34.375 16.375 18.833 686.190
30-Sep-96 28.750 63.250 20.875 38.500 35.250 16.375 19.083 687.310
1-Oct-96 28.625 62.500 21.000 37.750 34.375 16.375 19.500 689.080
2-Oct-96 28.875 62.875 21.125 38.375 34.500 16.875 19.250 694.010
3-Oct-96 28.750 63.125 21.125 38.750 34.625 17.125 18.667 692.780
4-Oct-96 29.250 64.125 21.875 39.500 36.625 18.125 18.833 701.460
7-Oct-96 28.625 64.125 22.125 40.375 36.750 17.375 19.000 703.340
8-Oct-96 28.875 63.625 22.250 40.125 37.125 17.500 18.833 700.640
9-Oct-96 28.750 63.500 21.875 41.125 36.625 17.625 18.917 696.740
10-Oct-96 28.625 63.625 22.000 41.375 36.250 17.625 19.000 694.610
11-Oct-96 28.875 64.000 22.750 41.750 35.750 17.875 19.000 700.660
14-Oct-96 29.125 64.125 23.000 41.250 35.250 17.875 18.833 703.540
15-Oct-96 29.125 64.375 22.625 40.875 33.750 17.750 18.750 702.570
16-Oct-96 28.875 65.500 22.875 41.875 34.375 17.375 18.583 704.410
17-Oct-96 29.125 64.875 23.000 41.125 34.500 17.375 18.333 706.990
18-Oct-96 29.000 65.000 23.375 40.000 34.250 17.625 18.333 710.820
21-Oct-96 28.875 65.625 23.000 40.125 33.625 17.750 18.000 709.850
22-Oct-96 29.625 66.625 22.250 40.000 33.125 17.750 17.667 706.570
23-Oct-96 29.750 66.125 22.875 38.750 32.250 17.875 17.583 707.270
24-Oct-96 30.000 65.375 22.750 38.250 32.125 17.625 17.417 702.290
25-Oct-96 29.875 66.250 22.750 37.625 31.500 17.875 17.333 700.920
28-Oct-96 29.500 66.375 22.500 37.625 30.875 17.875 17.333 697.260
29-Oct-96 29.250 65.750 22.375 37.000 31.750 18.000 17.250 701.500
30-Oct-96 29.000 65.625 22.375 37.375 32.000 18.125 17.250 700.900
31-Oct-96 29.250 65.875 22.625 37.250 32.625 17.875 17.167 705.270
1-Nov-96 29.000 65.500 22.500 38.125 35.000 17.750 17.917 703.770
4-Nov-96 29.375 66.875 22.625 38.000 34.500 17.625 18.417 706.730
[Chart continued from previous page]
5-Nov-96 29.000 67.625 22.984 39.625 35.000 17.000 18.750 714.140
6-Nov-96 28.750 67.750 22.750 39.875 35.750 16.875 18.750 724.590
7-Nov-96 28.125 69.000 22.375 39.125 36.250 16.750 17.917 727.650
8-Nov-96 27.250 68.500 22.500 39.500 36.125 16.500 17.750 730.820
11-Nov-96 26.625 70.375 22.500 39.875 36.750 16.875 18.083 731.870
12-Nov-96 26.125 70.875 21.500 39.375 37.375 17.000 18.250 729.560
13-Nov-96 26.125 70.625 21.125 39.750 38.000 17.125 18.459 731.130
14-Nov-96 26.125 70.625 21.375 39.875 37.750 17.000 18.250 735.880
15-Nov-96 27.500 72.250 21.500 40.875 37.875 16.750 18.083 737.620
18-Nov-96 27.875 71.375 21.250 40.750 38.000 16.500 17.917 737.020
19-Nov-96 27.750 71.000 21.250 41.000 37.250 16.875 17.667 742.160
20-Nov-96 28.000 71.750 21.625 39.750 37.500 17.000 17.709 743.950
21-Nov-96 28.125 72.250 21.625 40.375 37.500 16.875 16.750 742.750
22-Nov-96 27.750 72.125 21.625 40.875 37.375 16.500 15.667 748.730
25-Nov-96 27.750 73.500 21.750 40.500 36.375 16.125 15.917 757.030
26-Nov-96 27.625 76.000 21.500 40.250 36.375 15.875 16.333 755.960
27-Nov-96 27.625 73.875 21.250 40.625 36.750 15.000 16.667 755.000
28-Nov-96 27.625 73.875 21.250 40.625 36.750 15.000 16.667 755.000
29-Nov-96 27.750 73.875 21.250 40.750 37.375 15.375 16.667 757.020
2-Dec-96 27.750 73.875 20.875 40.750 37.125 15.625 16.167 756.560
3-Dec-96 27.750 71.875 20.125 40.500 36.875 15.625 16.167 748.280
4-Dec-96 28.375 72.000 20.250 39.859 36.625 15.625 17.125 745.100
5-Dec-96 28.375 71.875 20.625 40.000 36.750 15.625 17.833 744.380
6-Dec-96 28.375 71.500 20.500 39.750 36.500 15.375 18.542 739.600
9-Dec-96 28.375 73.125 20.750 40.000 37.500 15.625 18.667 749.760
10-Dec-96 28.500 73.250 21.125 40.125 38.000 15.625 18.000 747.540
11-Dec-96 28.500 72.125 20.625 39.750 37.500 15.625 18.250 740.730
12-Dec-96 27.500 70.250 20.375 38.875 37.000 15.250 17.917 729.330
13-Dec-96 26.750 70.250 20.375 39.000 36.875 15.000 18.500 728.640
16-Dec-96 26.625 69.375 20.250 38.250 36.125 15.375 18.250 720.980
17-Dec-96 25.750 70.875 20.625 38.125 35.625 14.875 18.542 726.040
[Chart continued from previous page]
18-Dec-96 24.750 71.500 20.500 37.750 36.375 15.000 18.083 731.540
19-Dec-96 26.375 72.375 20.875 37.875 36.125 15.000 17.917 745.760
20-Dec-96 26.750 72.375 20.875 37.750 36.250 15.375 17.667 748.870
23-Dec-96 26.375 72.125 20.500 37.500 36.000 15.125 18.000 746.920
24-Dec-96 26.500 71.500 20.625 37.000 35.750 15.250 17.917 751.030
25-Dec-96 26.500 71.500 20.625 37.000 35.750 15.250 17.917 751.030
26-Dec-96 27.125 71.375 20.750 37.375 36.000 15.000 18.000 755.820
27-Dec-96 27.625 71.250 20.500 37.125 35.000 16.125 18.417 756.790
30-Dec-96 28.000 70.000 20.750 37.250 35.125 15.750 18.750 753.850
31-Dec-96 28.750 69.750 20.875 37.500 34.500 15.500 19.042 740.740
1-Jan-97 28.750 69.750 20.875 37.500 34.500 15.500 19.042 740.740
2-Jan-97 29.250 67.375 20.875 36.750 34.250 15.625 19.000 737.010
3-Jan-97 29.313 69.250 21.000 37.375 34.750 17.000 19.333 748.030
6-Jan-97 29.500 69.000 21.000 37.250 34.000 16.625 18.917 747.650
7-Jan-97 29.125 68.875 21.375 37.750 34.625 16.625 18.500 753.230
8-Jan-97 28.000 67.875 21.000 37.750 35.000 16.875 18.542 748.410
9-Jan-97 27.875 67.500 21.375 37.625 35.375 16.750 18.333 754.850
10-Jan-97 27.875 67.875 21.125 37.500 36.000 16.625 18.333 759.500
13-Jan-97 27.625 68.000 21.000 37.750 36.000 16.500 18.959 759.510
14-Jan-97 27.875 69.250 21.375 37.750 35.375 16.750 19.125 768.860
15-Jan-97 28.500 69.125 21.250 37.375 34.500 17.375 19.125 767.200
16-Jan-97 28.125 68.875 21.500 37.125 34.000 16.875 18.125 769.750
17-Jan-97 27.875 70.000 21.250 36.750 33.875 16.875 18.500 776.170
20-Jan-97 27.750 70.500 21.250 36.500 33.875 17.125 18.750 776.700
21-Jan-97 27.375 69.750 21.250 37.750 33.625 17.125 19.125 782.720
22-Jan-97 26.750 70.750 21.250 39.125 34.250 17.000 18.875 786.230
23-Jan-97 25.250 70.375 21.250 38.750 33.625 17.500 19.125 777.560
24-Jan-97 25.250 71.250 20.750 38.875 34.375 18.250 18.875 770.520
27-Jan-97 25.500 71.625 20.750 38.375 34.125 17.625 19.000 765.020
28-Jan-97 25.500 72.625 20.500 38.000 34.000 17.875 19.000 765.020
[Chart continued from previous page]
29-Jan-97 25.250 73.750 20.250 38.750 34.000 17.875 19.125 772.500
30-Jan-97 25.250 72.375 20.125 38.625 34.250 18.000 19.313 784.170
31-Jan-97 26.250 72.875 20.500 38.500 34.000 17.750 19.000 786.160
3-Feb-97 27.125 72.875 20.625 38.750 33.625 18.125 18.875 786.730
4-Feb-97 27.250 72.625 20.750 38.250 33.125 18.000 18.875 789.260
5-Feb-97 27.000 72.750 21.125 38.250 32.250 19.500 19.375 778.280
6-Feb-97 27.125 74.000 20.875 38.875 32.250 20.875 19.563 780.150
7-Feb-97 26.500 75.000 20.750 39.375 33.125 20.125 19.125 789.560
10-Feb-97 26.750 75.625 20.375 39.625 34.000 19.250 19.875 785.430
11-Feb-97 27.750 75.000 20.500 41.500 34.625 19.375 20.125 789.590
12-Feb-97 28.000 76.625 20.750 42.750 34.250 19.625 21.375 802.770
13-Feb-97 29.000 77.375 20.625 42.875 34.125 19.500 21.625 811.820
14-Feb-97 29.375 78.125 20.500 42.625 33.375 20.125 21.188 808.480
17-Feb-97 29.375 78.125 20.500 42.625 33.375 20.125 21.188 808.480
18-Feb-97 30.375 77.500 20.625 42.375 35.000 19.875 21.000 816.290
19-Feb-97 31.125 76.125 20.750 43.125 35.375 20.000 22.625 812.490
20-Feb-97 31.000 74.750 20.500 42.625 35.375 19.375 22.938 802.800
21-Feb-97 30.250 75.375 20.625 42.000 34.625 19.000 22.250 801.770
24-Feb-97 30.000 75.625 21.250 42.125 34.625 19.625 22.750 810.280
25-Feb-97 30.000 76.125 21.875 42.250 34.625 19.500 22.500 812.100
26-Feb-97 29.375 75.500 21.750 41.625 34.625 19.250 22.625 805.680
27-Feb-97 29.500 75.875 21.375 41.000 34.125 19.250 22.125 795.070
28-Feb-97 29.375 74.250 21.250 41.000 34.875 19.125 21.000 790.820
3-Mar-97 29.375 73.375 21.125 42.375 35.875 19.625 21.250 795.310
4-Mar-97 29.250 72.750 21.250 42.875 36.500 19.625 22.000 790.950
5-Mar-97 29.250 73.500 21.125 43.375 36.875 19.750 22.500 801.990
6-Mar-97 27.750 75.125 21.125 43.625 36.750 19.875 23.000 798.560
7-Mar-97 28.250 76.000 21.250 44.250 36.875 21.250 22.750 804.970
10-Mar-97 29.375 76.750 21.250 44.000 36.500 20.750 22.250 813.650
11-Mar-97 30.500 77.125 21.625 43.375 36.375 20.750 22.250 811.340
12-Mar-97 30.250 75.375 21.375 43.250 36.375 20.125 22.375 804.260
[Chart continued from previous page]
13-Mar-97 30.125 73.250 21.375 41.750 36.125 19.625 21.500 789.560
14-Mar-97 30.000 74.750 20.875 42.750 36.375 19.875 21.875 793.170
17-Mar-97 30.125 76.000 20.500 43.000 36.375 19.250 22.000 795.710
18-Mar-97 29.875 75.500 19.875 43.500 36.500 19.125 22.000 789.660
19-Mar-97 30.250 75.000 19.250 43.625 36.500 19.125 22.125 785.770
20-Mar-97 29.875 74.500 19.125 44.000 36.500 19.125 21.625 782.650
21-Mar-97 28.250 74.000 18.750 43.375 36.500 18.375 21.625 784.100
24-Mar-97 27.875 75.000 19.125 44.875 36.500 18.750 21.750 790.890
25-Mar-97 28.000 74.750 18.875 44.000 35.875 19.500 21.375 789.070
26-Mar-97 28.750 75.250 18.625 44.250 32.500 20.750 21.063 790.500
27-Mar-97 29.875 75.000 18.375 44.000 33.000 20.125 20.375 773.880
28-Mar-97 29.875 75.000 18.375 44.000 33.000 20.125 20.375 773.880
31-Mar-97 29.625 72.875 18.000 43.250 32.625 20.375 19.938 757.120
1-Apr-97 30.625 72.375 18.250 43.500 32.500 20.375 20.000 759.640
2-Apr-97 30.625 72.375 17.875 42.625 32.000 20.250 19.500 750.110
3-Apr-97 30.500 72.625 18.000 42.500 31.500 20.250 19.875 750.320
4-Apr-97 30.250 73.750 18.000 43.000 30.750 21.000 20.750 757.900
7-Apr-97 30.375 73.750 18.125 43.375 31.250 21.250 20.500 762.130
8-Apr-97 30.000 73.875 18.000 42.625 31.125 20.750 21.500 766.120
9-Apr-97 29.750 73.750 18.250 42.500 31.750 21.125 21.000 760.600
10-Apr-97 29.750 74.000 18.125 42.250 31.750 20.875 19.625 758.340
11-Apr-97 29.500 72.375 17.875 41.000 31.375 20.375 19.938 737.650
14-Apr-97 29.250 71.125 17.875 40.750 30.625 20.625 19.750 743.730
15-Apr-97 28.625 73.875 18.250 40.750 30.875 20.500 20.063 754.720
16-Apr-97 28.875 75.625 18.250 43.875 31.250 20.250 21.000 763.530
17-Apr-97 28.875 75.750 18.250 44.250 31.125 20.250 20.625 761.770
18-Apr-97 29.000 76.750 18.750 44.125 31.625 20.000 19.875 766.340
21-Apr-97 28.875 76.875 18.625 44.000 30.375 19.750 19.125 760.370
22-Apr-97 28.625 78.250 19.000 44.750 27.375 20.500 19.000 774.610
23-Apr-97 29.125 79.125 18.875 45.000 25.875 19.875 19.250 773.640
24-Apr-97 29.000 78.250 18.125 44.500 26.000 19.875 19.750 771.180
25-Apr-97 28.625 77.375 18.375 44.375 25.750 20.000 18.750 765.370
[Chart continued from previous page]
28-Apr-97 28.750 77.625 18.375 44.500 25.500 19.875 19.875 772.960
29-Apr-97 28.750 80.750 18.750 44.875 25.750 20.000 19.563 794.050
30-Apr-97 28.875 81.750 18.500 45.000 26.625 20.250 18.813 801.340
1-May-97 29.000 81.000 18.625 44.875 28.750 20.500 19.375 798.530
2-May-97 29.000 80.375 18.500 45.000 29.500 21.750 20.250 812.970
5-May-97 29.000 82.125 18.625 45.250 29.000 21.125 21.063 830.240
6-May-97 28.625 82.250 18.500 45.000 28.250 21.000 20.016 827.760
7-May-97 28.250 80.500 18.500 44.000 28.938 20.875 19.750 815.620
8-May-97 27.500 81.250 18.625 44.000 28.250 20.625 19.250 820.260
9-May-97 28.000 82.250 18.750 43.875 28.813 20.875 19.875 824.780
12-May-97 28.875 84.500 18.625 45.375 28.938 20.938 20.250 837.660
13-May-97 28.500 83.625 18.250 46.875 28.813 21.500 20.500 833.130
14-May-97 28.250 83.625 17.875 47.625 29.000 22.750 20.375 836.040
15-May-97 28.125 82.875 17.750 47.250 29.000 22.625 20.750 841.880
16-May-97 28.625 80.875 17.875 47.750 30.063 24.125 20.000 829.750
19-May-97 29.125 83.250 17.875 48.625 30.125 23.875 21.000 833.270
20-May-97 29.125 83.500 18.000 48.625 29.875 24.125 21.125 841.660
21-May-97 30.000 82.125 18.000 48.375 29.375 24.750 21.875 839.350
22-May-97 30.625 82.125 18.000 47.750 29.563 24.250 22.125 835.660
23-May-97 30.875 83.250 17.875 48.500 29.938 25.625 22.250 847.030
26-May-97 30.875 83.250 17.875 48.500 29.938 25.625 22.250 847.030
27-May-97 31.250 83.750 17.250 48.875 29.750 27.000 23.000 849.710
28-May-97 31.750 83.875 17.500 47.250 30.438 27.000 22.250 847.210
29-May-97 32.125 82.875 17.625 46.875 30.250 27.875 21.250 844.080
30-May-97 32.125 81.875 17.750 46.500 30.125 27.875 21.813 848.280
2-Jun-97 33.125 80.875 17.625 46.250 29.563 31.875 23.125 846.360
3-Jun-97 33.125 80.625 17.750 46.125 30.000 30.875 22.750 845.480
4-Jun-97 33.125 79.875 17.500 46.125 30.500 31.000 23.125 840.110
5-Jun-97 33.250 80.750 17.625 46.500 30.625 31.000 23.250 843.430
6-Jun-97 33.375 81.375 17.625 46.750 30.875 31.750 23.250 858.010
9-Jun-97 33.250 81.000 17.625 47.750 32.688 32.000 23.500 862.910
10-Jun-97 33.500 81.875 17.750 49.625 33.500 30.875 23.813 865.270]
Entertainment Composite: News Corp., Time Warner, Disney and Viacom.
Cable Composite: BET Holdings, Liberty Media.
[Continued from previous page]
Transaction Multiples
- ---------------------
Price per Share $35.00
Enterprise Value (EV) $1,866mm
Adjusted Enterprise Value (AEV) (a) $1,667mm
EV / LTM EBITDA 24.9x
AEV / LTM EBITDA (a) 15.8x
EV / 1997E EBITDA 22.9x
AEV / 1997E EBITDA (a) 15.2x
AEV / Subscribers (b) $24.30
(a) AEV=EV minus Flextech stake value of $49mm; estimated MTM value of $100mm,
estimated FiT TV value of $36mm and estimated value of other assets of
$15mm. Multiples exclude EBITDA contribution from those assets
(b) Includes 68.6 million Family Channel subscribers.
Transaction Comments
- --------------------
- -- The transaction will involve the merger of Fox Kids, a fully integrated
global children's television entertainment company owned by News Corp. and
Saban Entertainment, and IFE.
- -- The acquisitions of The Family Channel, one of the last remaining
independent cable channels, will provide Fox Kids with an established widely
distributed outlet for its programming.
- -- The transaction was announced a day after News Corp.'s announcement of the
exchange of its U.S. Satellite-TV business for a 31% nonvoting stake in
Primestar Partners LP in the form of convertible securities.
SELECT COMPARABLE TRANSACTIONS
Implied Value Adjusted for Ratings
Implied Levered
Value ($ millions) Subscribers Value per Value per
Transaction of Cable Network Rating (a) (millions) Viewers (a) Subscriber Viewer (a)
- ---------------------------------------------------------------------------------------------------------
BET at $63 per Share $1,157 0.50 50.0 245,000 $23.14 $4,722
Comcast - Disney / E 550 0.34 42.7 153,000 12.88 3,595
Seagram's Universal /
USA Networks & Sci Fi 3,400 1.50 119.0 1,782,000 28.57 2,316
Westinghouse CBS /
TNN and CMT 1,485 0.65 107.0 697,000 13.88 2,131
Fox / IFE 1,667 1.22 68.6 864,000 24.30 1,929
________________________________________________________________________________
(a) Based on Prime Time ratings as of October 1997.
[Goldman Sachs Logo]
38
DCF BASED VALUATION
Core Cable Network
[Bar graph reflecting the following information:
Sensitivity Analysis Sensitivity Analysis
Management Management Adjusted EBTDA Adjusted EBTDA
Projections- Projections Margin Margin
----------- ----------- ------ ------
11-14% Discount 11-14% Discount 11-14% Discount 12.5% Discount
Rates Rates Rates Rates
9-11x 2002 for Current 9-11x 2002 9-11x 2002 EBITDA
EBITDA Exit Margin EBITDA Exit Exit Multiple
Multiple 20-24% for Premium Multiple EBITDA margin @
Margin EBITDA margin 54%
9-11x 2002 EBITDA @ 58%
Exit Multiple
$ Per Share $72 - $95 $65 - 87 $58 - $76 $56 - $67
- -----------
Multiple of EBITDA Multiple of EBITDA Multiple of EBITDA Multiple of EBITDA
FY 1997 20.3x - 26.2x FY 1997 18.5x - 24.1x FY 1997 16.5x - 21.3x FY 1997 14.6 - 17.4x
FY 1998 14.5x - 18.8x FY 1998 13.2x - 17.3x FY 1998 12.2x - 15.7x FY 1998 12.2x - 14.4x
New Offer $63
Current Price $54
Original Offer $48
Valuation ranges on July 31, 1998
[Goldman Sachs Logo]
39
[Goldman Sachs Logo]
DISCOUNTED CASH FLOW VALUATION
Analysis of BET Cable Network
Valuation at July 31, 1998
Using Management December Projections
-------------------------------------
Exit Multiple of 2002 EBITDA
---------------------------------------------
9.0 x 9.5x 10.0 x 10.5 x 11.0 x
- --------------------------------------------------------------------------------------
11.0% 1,436,244 1,503,201 1,570,158 1,637,115 1,704,071
Discount 12.0% 1,387,343 1,451,940 1,516,537 1,581,135 1,645,732
Rate 12.5% 1,363,680 1,427,136 1,490,593 1,554,049 1,617,506
13.0% 1,340,524 1,402,865 1,465,206 1,527,546 1,589,887
14.0% 1,295,681 1,355,863 1,416,045 1,476,227 1,536,409
Using Constant EBITDA Margins
-----------------------------
Exit Multiple of 2002 EBITDA
- --------------------------------------------------------------------------------------
9.0 x 9.5x 10.0 x 10.5 x 11.0 x
- --------------------------------------------------------------------------------------
11.0% 1,147,698 1,201,441 1,255,185 1,308,928 1,362,672
Discount 12.0% 1,108,425 1,160,275 1,212,124 1,263,974 1,315,823
Rate 12.5% 1,089,421 1,140,355 1,191,288 1,242,222 1,293,156
13.0% 1,070,823 1,120,861 1,170,900 1,220,938 1,270,977
14.0% 1,034,806 1,083,112 1,131,418 1,179,723 1,228,029
Note: EBITDA margin constant at 58%.
Using Management December Projections at Adjusted Rates
-------------------------------------------------------
Exit Multiple of 2002 EBITDA
----------------------------------------------
9.0 x 9.5x 10.0 x 10.5 x 11.0 x
- --------------------------------------------------------------------------------------
11%/20% 1,311,912 1,375,328 1,438,745 1,502,162 1,565,579
Discount 12%/21% 1,266,050 1,327,257 1,388,464 1,449,671 1,510,878
Rate 12.5%/22% 1,240,717 1,300,705 1,360,694 1,420,682 1,480,671
13%/23% 1,216,039 1,274,841 1,333,643 1,392,445 1,451,247
14%/24% 1,174,178 1,230,968 1,287,758 1,344,548 1,401,338
Note: Using discount rates of 11-14% for current EBITDA margin
and 20-24% for premium margin.
Using Fixed Discount Rate and Various EBITDA Margins
----------------------------------------------------
Exit Multiple of 2002 EBITDA
----------------------------------------------
9.0 x 9.5x 10.0 x 10.5 x 11.0 x
- --------------------------------------------------------------------------------------
46% 847,469 887,865 928,261 968,657 1,009,053
EBITDA 50% 928,120 972,028 1,015,937 1,059,846 1,103,754
Margin 54% 1,008,770 1,056,191 1,103,613 1,151,034 1,198,455
58% 1,089,421 1,140,355 1,191,288 1,242,222 1,293,156
62% 1,170,071 1,224,518 1,278,964 1,333,411 1,387,857
Note: Discount rate constant at 12.5%.
40
[Goldman Sachs Logo]
DISCOUNTED CASH FLOW VALUATION
Analysis of BET Cable Network
Valuation Per Share at July 31, 1998
Using Management December Projections
-------------------------------------
Exit Multiple of 2002 EBITDA
--------------------------------------------------
9.0 x 9.5x 10.0 x 10.5 x 11.0 x
- ---------------------------------------------------------------------
11.0% 79.99 83.72 87.45 91.18 94.91
Discount 12.0% 77.27 80.86 84.46 88.06 91.66
Rate 12.5% 75.95 79.48 83.02 86.55 90.08
13.0% 74.66 78.13 81.60 85.07 88.55
14.0% 72.16 75.51 78.86 82.22 85.57
Using Constant EBITDA Margins
-----------------------------
Exit Multiple of 2002 EBITDA
--------------------------------------------------------
9.0 x 9.5x 10.0 x 10.5 x 11.0 x
- ------------------------------------------------------------------------------
11.0% 63.92 66.91 69.91 72.90 75.89
12.0% 61.73 64.62 67.51 70.40 73.28
Discount 12.5% 60.68 63.51 66.35 69.19 72.02
Rate 13.0% 59.64 62.43 65.21 68.00 70.79
14.0% 57.63 60.32 63.01 65.70 68.39
Note: EBITDA margin constant at 58%
Using Management December Projections at Adjusted Rates
-------------------------------------------------------
Exit Multiple of 2002 EBITDA
- ------------------------------------------------------------------------------
9.0 x 9.5x 10.0 x 10.5 x 11.0 x
- ------------------------------------------------------------------------------
11% / 20 73.07 76.60 80.13 83.66 87.19
Discount 12% / 21 70.51 73.92 77.33 80.74 84.15
Rate 12.5%/22 69,10 72.44 75.78 79.12 82.47
13% / 23 67.73 71.00 74.28 77.55 80.83
14% / 24 65.40 68.56 71.72 74.88 78.05
Note: Using discount rates of 11-14% for current margin and 20-24% for premium
margin.
Using Fixed Discount Rate and Various EBITDA Margins
----------------------------------------------------
Exit Multiple of 2002 EBITDA
----------------------------------------------------------
9.0 x 9.5x 10.0 x 10.5 x 11.0 x
- ---------------------------------------------------------------------------
46% 47.20 49.45 51.70 53.95 56.20
EBITDA 50% 51.69 54.14 56.58 59.03 61.47
Margin 54% 56.18 58.82 61.47 64.11 66.75
58% 60.68 63.51 66.35 69.19 72.02
62% 65.17 68.20 71.23 74.26 77.30
Note: Discount rate constant at 12.5%.
41
[Goldman Sachs Logo]
DISCOUNTED CASH FLOW VALUATION
Analysis of BET Cable Network
Levered Multiple of 1998 EBITDA
Using Management December Projections
-------------------------------------
Exit Multiple of 2002 EBITDA
---------------------------------------------------------
9.0 x 9.5x 10.0 x 10.5 x 11.0 x
- -----------------------------------------------------------------------------
11.0% 15.4 x 16.1 x 16.8 x 17.5 x 18.2 x
Discount 12.0% 14.9 x 15.6 x 16.3 x 16.9 x 17.6 x
Rate 12.5% 14.7 x 15.3 x 16.0 x 16.6 x 17.3 x
13.0% 14.4 x 15.1 x 15.7 x 16.4 x 17.0 x
14.0% 14.0 x 14.6 x 15.2 x 15.8 x 16.5 x
Using Constant EBITDA Margins
-----------------------------
Exit Multiple of 2002 EBITDA
------------------------------------------------------------------
9.0 x 9.5x 10.0 x 10.5 x 11.0 x
- ------------------------------------------------------------------------------
11.0% 12.9 x 13.4 x 14.0 x 14.6 x 15.2 x
Discount 12.0% 12.4 x 13.0 x 13.6 x 14.1 x 14.7 x
Rate 12.5% 12.2 x 12.8 x 13.3 x 13.9 x 14.4 x
13.0% 12.0 x 12.6 x 13.1 x 13.7 x 14.2 x
14.0% 11.7 x 12.2 x 12.7 x 13.2 x 13.7 x
Note: EBITDA margin constant at 58%.
Using Management December Projections at Adjusted Rates
-------------------------------------------------------
Exit Multiple of 2002 EBITDA
---------------------------------------------------------------
9.0 x 9.5x 10.0 x 10.5 x 11.0 x
- -----------------------------------------------------------------------------
11% / 20% 14.1 x 14.8 x 15.5 x 16.1 x 16.8 x
Discount 12% / 21% 13.7 x 14.3% 14.9 x 15.6 x 16.2 x
Rate 12.5%/22% 13.4 x 14.0 x 14.6 x 15.3 x 15.9 x
13% / 23% 13.1 x 13.8 x 14.4 x 15.0 x 15.6 x
14% / 24% 12.7 x 13.3 x 13.9 x 14.5 x 15.1 x
Note: Using discount rates of 11-14% for current margin and 20-24% for premium
margin.
Using Fixed Discount Rate and Various EBITDA Margins
----------------------------------------------------
Exit Multiple of 2002 EBITDA
- -----------------------------------------------------------------------------
9.0 x 9.5x 10.0 x 10.5 x 11.0 x
------ ------ ------ ------ ------
46% 12.2 x 12.7 x 13.3 x 13.8 x 14.4 x
EBITDA 50% 12.2 x 12.7 x 13.3 x 13.8 x 14.4 x
Margin 54% 12.2 x 12.8 x 13.3 x 13.9 x 14.4 x
58% 12.2 x 12.8 x 13.3 x 13.9 x 14.4 x
62% 12.3 x 12.8 x 13.4 x 13.9 x 14.5 x
Note: Discount rate constant at 12.5%.
42
[Goldman Sachs Logo]
VALUATION SUMMARY OF OTHER UNITS
Potential Current Market Value
- --------------------------------------------------------
Business Unit Value ($mm) Key Assumptions
- --------------------------------------------------------------
BET on Jazz $20 - 30 -- 2 million current subscribers
-- $10 - $15 per subscriber
(consistent with high quality
niche, start-up channels)
Action Pay-Per-View $20 - $25 -- 15 - 20x LTM EBITDA
Publishing $5 - 10 -- 1 - 2x LTM Sales
SoundStage $15 - 25 -- 8 - 12x 1999 EBITDA
Restaurants
Unconsolidated Affiliates $10 BET Movies/Starz! 3, LaVan
Hawkins Urban City Foods
and Cybersonic Records
valued at cost
Total $70 - 100
Per Share $4.00 - 6.00
43
[Chart continued from previous page]
DCF of Management Projections
- -----------------------------
Value ($mm) Key Assumptions Other Comments
- -------------------------------------------------------------------------------------
$60 - 65 -- $33mm Revenue, -- Logical extension of brand equity
$19mm EBITDA by 2002 -- Little competition in niche market
-- 10X 2002 EBITDA -- Value of programming library
-- 30% discount rate over time
-- Growth currently constrained by
scarcity of analog spectrum
$30 - 32 -- $16mm Revenue, -- Growth has been slow due to
$4mm EBITDA by 2002 shortage of analog channel
-- 9 - 11x 2002 EBITDA capacity
-- 16 - 20% discount rate -- Limited access to high-profile
programming
-- Competitive segment
$8 - 10 -- $11mm Revenue, -- Low growth / low margin
$1mm EBITDA by 2002 business
-- 8 - 12x 2002 EBITDA -- Have already terminated YSB
-- 11 - 15% discount rate
$35 - 40 -- $19.3mm EBITDA by 2002 -- Successful restaurant launch in
-- 8 - 9x 2002 EBITDA Largo
-- 30% discount rate -- Attractive arrangement with
Disney
-- Cash flow associated with
restaurants are risky relative to
core
$10 -- BET Movies/Starz! 3, LaVan -- Little effect on valuation
Hawkins Urban City Foods
and Cybersonic Records
valued at cost
$145 - 160
$8.00 - 9.00
RECAPITALIZATION ANALYSIS SUMMARY
Price to the Public Shareholders $63.00
- -------------------------------- ------
Consolidated (Core) 1998 EBITDA/Interest:
Management 2.3x(2.4x)
Management Adjusted 2.1x(2.2x)
Salomon (a) 2.0x(2.2x)
2001 Equity Returns to Johnson Liberty (b):
9x EBITDA
Management 24.7%
Management Adjusted 17.7%
Salomon (a) 10.1%
10x EBITDA
Management 28.4%
Management Adjusted 21.4%
Salomon (a) 13.9%
11x EBITDA
Management 31.7%
Management Adjusted 24.8%
Salomon (a) 17.3%
(a) Salomon projections for cable network, BET on Jazz and restaurants. BET
management projections for remaining BET units.
(b) Returns based upon $63.00 value per share.
44
PROJECT BRETT
Goldman Meeting
February 9, 1998
Confidential
Salomon Smith Barney
A Member of TravelersGroup
45
AGENDA
1. SUMMARY 1
2. PRECEDENT TRANSACTION ANALYSIS 3
3. FINANCIAL PROJECTIONS 7
Salomon Smith Barney
A Member of TravelersGroup
46
SUMMARY
Salomon Smith Barney
A Member of TravelersGroup
47
SUMMARY VALUATION
Multiple Implied Value DCF Value
---------------------- ---------
Operating Segment Low High Low High
- ----------------- --- ---- --- ----
Cable Network $ 750 $ 900 $1,050 $1,200
Jazz 15 20 16 20
Action PPV (a) 30 40 30 40
Publishing (a) 8 10 8 10
Restaurants (b) 6 6 13 17
------ ------ ------ ------
Total Firm Value $ 809 $ 976 $1,117 $1,287
Less:
Net Debt 51 51 51 51
Plus:
Option Proceeds 29 29 29 29
Book Value of Equity Investments: 13 13 13 13
------ ------ ------ ------
Implied Equity Value $ 800 $ 967 $1,108 $1,278
Fully Diluted Shares
Outstanding (c) 18.5 18.5 18.5 18.5
Implied Equity Value
Per Share $43.00 $52.00 $60.00 $69.00
Premium/(Discount)
to MArket (d) 8.2% 30.8% 50.9% 73.6%
(a) The DCF methodology is utilized in both scenarios since it more accurately
reflects the prospects associated with these limited growth entities.
(b) Value of invested capital.
(c) Primary shares outstanding of 16.7 million and options of 1.8 million with a
weighted average strike price of $15.95.
(d) Closing market price of $39.75 as of September 5, 1997.
Salomon Smith Barney
A Member of TravelersGroup
48 2
PRECEDENT TRANSACTION ANALYSIS
Salomon Smith Barney
A Member of TravelersGroup
49 3
PRECEDENT CABLE PROGRAMMING TRANSACTIONS
LARGE CATV NETWORKS - - GREATER THAN 50MM SUBSCRIBERS
(Dollars in Millions, except per Subscriber Multiples)
Date
Announced Seller Acquiror Network
- --------- ------ -------- -------
Oct-97 Seagram HSN USA Networks
Sep-97 Viacom Seagram USA Networks
Jun-97 International Family Ent. Fox Kids Worldwide Family Channel
Feb-97 Gaylord Westinghouse CMT & TNN
Aug-96 Public Investors Silver King Home Shopping Network
Sep-95 Turner Broadcasting Time Warner Implied Network Value
Sep-94 Public Investors TCI & Comcast QVC
Mar-94 Viacom Hearst / Capital Cities ABC Lifetime Network
Jun-93 Rockefeller Group Hearst / Capital Cities ABC Arts & Entertainment
Sep-93 Liberty Media Cablevision Systems American Movie Classics
Nov-90 RJR Nabisco Hearst ESPN
[Table continued from above]
Total Implied Multiples of Firm Value
-----------------------
Stake Subs Firm Value Revenue EBITDA Subscriber
- ----- ----- --------- ------- -------- ----------
100.0% 120.8 $3,285.0 NA 14.8X(A) $27.19
50.0 120.8 3,400.0 NA 15.3 28.15
100.0 69.0 1,428.0 3.8X 12.8 20.70
100.0 105.6 1,485.0 NA 11.2(A) 14.06
30.1 72.6 1,270.0 1.2 NM 17.49
100.0 387.8 7,114.0 4.0 13.4 18.34
65.0 56.6 2,182.2 1.7 10.8 38.55
33.3 59.1 952.8 3.9 11.6 16.12
12.5 56.9 400.0 2.3 11.8 7.03
50.0 52.0 390.0 4.4 12.2 6.70
20.0 57.3 850.0 1.7 11.8 14.83
Maximum 4.4x 15.3x $38.55
Median 3.0 12.0 17.49
Mean 2.9 12.6 19.02
Minimum 1.2 10.8 6.70
(a) Based on forward EBITDA multiple.
Salomon Smith Barney
A Member of TravelersGroup
50 4
[Table continued from previous page]
SMALL/START UP CATV NETWORKS - - LESS THAN 50MM SUBSCRIBERS
(Dollars in Millions, except per Sub Multiples)
Date
Announced Seller Acquiror Network
- --------- ------ ------- -------
Sep-97 A.H. Belo E.W. Scripps Television Food Network
Jun-97 Landmark Comm. Paxson Communications Travel Channel
Jan-97 Time Warner Inc. Comcast / Disney E! Entertainment
Jul-95 Cablevision Systems NBC Court TV
Apr-95 Adam & Eve Comm. Graff Pay-Per-View Adam & Eve
Dec-94 Home Video Channel Graff Pay-Per-View Pay-per-view operation
Oct-94 Video Jukebox Interntl. Ticketmaster The Box
May-94 Bill Daniels Tele-Communications Inc. Prime Ticket
Oct-93 Tele-Communications Flextech plc United Artists European
Jan-92 TWA Landmark Communications Travel Channel
May-91 Financial News Network General Electric Financial News Network
May-91 Financial News Network Discovery Communications Learning Channel
Jul-90 Country Music TV Gaylord Entertainment Country Music TV
Jan-90 Christian Best. Network International Family Ent. Family Channel
Jan-90 Company Directors Gold'N M Television Nostalgia Network
Feb-89 Investor Groups Investor Groups Discovery Channel
[Table continued from previous page]
Total Implied Multiples of Firm Value
-----------------------
Stake Subs Firm Value Revenue Ebitda Subscriber
- ----- ----- --------- ------- -------- ----------
100.0% 26.5 $223.2 8.9x NM $ 8.42
100.0 18.7 75.0 4.2 NM 4.01
58.4 42.2 550.0 5.7 15.3 13.03
16.7 22.2 119.8 2.3 24.0 5.39
100.0 NA 7.2 1.8 NM NA
49.0 0.1 11.0 1.4 4.2 NM
50.0 NA 4.0 2.9 NA NA
100.0 NA 200.0 NA 14.0 NA
100.0 NA 297.4 NA NA NA
97.0 11.5 51.5 8.1 NM 4.48
100.0 26.0 154.3 NA NM 5.93
51.0 14.9 35.0 NA NM 2.35
100.0 11.5 35.0 7.0 NM 3.04
100.0 44.3 250.0 2.7 9.3 5.64
50.1 8.0 33.1 4.1 NM 4.14
40.0 39.6 300.0 4.8 30.0 7.58
Maximum 8.1x 30.0x $13.03
Median 4.1 14.6 4.94
Mean 4.1 16.1 5.56
Minimum 1.4 4.2 2.35
IMPLIED CABLE NETWORK VALUATION
Operating Firm Value Multiples Implied Firm Value
-------------------- ------------------
(Dollars and subs in millions) Data(c) Low High Low High
------- --- ---- --- ----
EBITDA
Fiscal 1997 - Company $68.9 10.0x 12.0x $689 $ 827
Fiscal 1998 - Company 96.4 10.0 12.0 964 1,157
Fiscal 1998 - Sensitivity 90.7 10.0 12.0 907 1,088
Subscribers
First Quarter 1998 (a) 51.6 $13.00 $15.00 671 774
Fiscal EOY Billable 1998 - Company 49.4 13.00 15.00 642 740
Fiscal EOY 1998 - Company (b) 56.0 13.00 15.00 728 840
Fiscal EOY Billable 1998 - Sensitivity 43.3 13.00 15.00 563 649
Fiscal EOY 1998 - Sensitivity 48.0 13.00 15.00 624 720
Salomon Smith Barney's Preliminary Value Estimate $750 $900
(a) Source: December 15, 1997 Company press release as of October 31, 1997.
(b) Includes DBS on free carriage.
Salomon Smith Barney
A Member of TravelersGroup
51 5
IMPLIED BET ON JAZZ VALUATION
OPERATING FIRM VALUE MULTIPLES IMPLIED FIRM VALUE
-------------------- ------------------
DATA LOW HIGH LOW HIGH
--------- --------- --------- -------- --------
EOY Subscribers
December 31, 1997 (a) 2.3 $4.00 $5.00 $ 9 $11
EOY 1998 - Company 5.7 4.00 5.00 23 28
F1998 EOY Billable - Company 1.9 4.00 5.00 8 10
EOY 1998 - Sensitivity 3.4 4.00 5.00 14 17
F1998 EOY - Billable - Sensitivity 0.8 4.00 5.00 3 4
Salomon Smith Barney's
Preliminary Value Estimate $15 $20
(A) Actual reported subscribers from Company schedule.
Salomon Smith Barney
A Member of TravelersGroup
52 6
FINANCIAL PROJECTIONS
Salomon Smith Barney
A Member of TravelersGroup
53 7
MANAGEMENT PROJECTION ISSUES: CABLE NETWORK
CABLE NETWORK
Available units
Mix of economic and promotional/ADU units
Spot rates
Infomercial contract expiration
Subscriber growth
Domestic
DBS
Canadian
Production and programming expense
Marketing expense
Capital expenditures (timing and amount)
Salomon Smith Barney
A Member of TravelersGroup
54 8
SENSITIZED CABLE NETWORK PROJECTIONS
Summary Financial Data Projected fiscal year ended July 31,
(Dollars in Millions, except where noted) 1998 1999 2000 2001 2002
---- ---- ---- ---- ----
Advertising Revenue $ 89.1 $ 97.0 $ 104.4 $ 112.5 $ 121.3
Subscriber Revenue 65.2 79.3 90.8 104.0 113.1
Other Revenue 0.5 0.6 0.6 0.7 0.7
Total Revenue $ 154.7 $ 176.8 $ 195.9 $ 217.1 $ 235.1
Production and Programming $ 24.2 $ 26.0 $ 28.0 $ 30.1 $ 32.3
Marketing 16.9 18.1 19.6 21.1 22.7
General and Administrative 23.0 23.7 24.5 25.7 27.0
EBITDA $ 90.7 $ 109.0 $ 123.8 $ 140.3 $ 153.1
Depreciation & Amortization 6.2 6.7 7.1 7.3 7.5
EBIT $ 84.5 $ 102.3 $ 116.7 $ 133.0 $ 145.6
Underlying Operating Assumptions
National Spots 126,000 126,000 126,000 126,000 126,000
Direct Response Spots 17,000 17,000 17,000 17,000 17,000
Total Economic Spots 143,000 143,000 143,000 143,000 143,000
ADU's and Promotions 43,000 43,000 43,000 43,000 43,000
Total Spots 186,000 186,000 186,000 186,000 186,000
National Spot Rate ($) $ 485.0 $ 530.0 $ 583.0 $ 641.0 $ 704.8
Direct Response Spot Rate ($) $ 300.0 $ 300.0 $ 300.0 $ 300.0 $ 300.0
Total Average Billable Subscribers (millions) 43,284.3 50,183.5 55,392.9 61,162.9 64,265.4
Annual Domestic per Subscriber Rate ($) $ 1.51 $ 1.60 $ 1.66 $ 1.72 $ 1.78
Annual Canadian per Subscriber Rate ($) $ 1.18 $ 1.23 $ 1.27 $ 1.31 $ 1.35
Capital Expenditures $ 12.0 $ 0.5 $ 0.5 $ 0.5 $ 0.5
Salomon Smith Barney
A Member of TravelersGroup
55 9
COMPARISON OF KEY RATIOS
Summary Financial Data Projected fiscal year ended July 31,
(Dollars in Millions, except where noted) 1998 1999 2000 2001 2002
--------------------------------------------------------------------------------------------------
Revenue Growth
Management Case 17.9% 20.5% 15.3% 13.9% 10.7%
Sensitivity Model 13.6% 14.3% 10.8% 10.9% 8.3%
--------------------------------------------------------------------------------------------------
EBITDA Margin
Management Case 60.0% 65.3% 68.4% 70.8% 72.3%
Sensitivity Model 58.6% 61.6% 63.2% 64.6% 65.1%
--------------------------------------------------------------------------------------------------
EBIT Margin
Management Case 56.2% 61.8% 65.2% 68.0% 69.6%
Sensitivity Model 54.6% 57.8% 59.6% 61.3% 61.9%
--------------------------------------------------------------------------------------------------
Underlying Operating Assumptions
--------------------------------------------------------------------------------------------------
National Spot Rate Growth
Management Case 16.9% 7.7% 11.2% 9.9% 10.0%
Sensitivity Model 8.2% 9.3% 10.0% 9.9% 9.9%
--------------------------------------------------------------------------------------------------
Direct Response Rate Growth
Management Case 6.1% 0.0% 0.0% 5.8% 6.8%
Sensitivity Model 10.3% 0.0% 0.0% 0.0% 0.0%
--------------------------------------------------------------------------------------------------
Total Average Billable Subscribers Growth
Management Case 8.2% 21.3% 11.2% 11.2% 6.1%
Sensitivity Model 6.6% 15.9% 10.4% 10.4% 5.1%
--------------------------------------------------------------------------------------------------
Salmon Smith Barney
A Member of TravelersGroup
56 10
MANAGEMENT PROJECTION ISSUES: BET ON JAZZ
BET ON JAZZ
Start-up business
Low barriers to entry
Pricing strategy evolving
Dependence on success of digital cable and DBS
Domestic subscriber growth
International subscriber growth
Rate per subscriber growth
Domestic
International
Production and programming expense
Marketing expense
Salomon Smith Barney
A Member of TravelersGroup
57 11
BET ON JAZZ PROJECTIONS
Summary Financial Data Projected fiscal year ended July 31,
(Dollars in Millions, except where noted) 1998 1999 2000 2001 2002
-------------------------------------------------------------------------------------------------------------
Advertising Revenue $ 0.5 $ 1.5 $ 3.3 $ 5.6 $ 7.5
Subscriber Revenue 0.6 3.0 6.6 9.7 13.3
Other Revenue 0.0 0.0 0.0 0.0 0.0
-------------------------------------------------------------------------------------------------------------
Total Revenue $ 1.1 $ 4.5 $ 9.8 $ 15.3 $ 20.8
Production and Programming $ 9.3 $ 9.9 $ 10.6 $ 11.3 $ 12.1
Launch Support Amortization 0.7 1.3 1.9 2.5 2.8
General and Administrative 0.0 0.0 0.0 0.0 0.0
-------------------------------------------------------------------------------------------------------------
EBITDA ($8.9) ($6.7) ($2.7) $ 1.4 $ 5.9
Depreciation & Amortization 1.4 1.5 1.6 1.7 1.8
-------------------------------------------------------------------------------------------------------------
EBIT ($10.3) ($8.3) ($.4.3) ($0.3) $ 4.0
Underlying Operating Assumptions
-------------------------------------------------------------------------------------------------------------
Average Billable Domestic Subscribers (000s) 0.0 3,279.1 4,779.1 6,279.1 7,779.1
Average Billable International Subscribers (000s) 575.7 1,075.7 1,575.7 2,075.7 2,575.7
-------------------------------------------------------------------------------------------------------------
Total Average Billable Subscribers (000s) 575.7 4,354.8 6,354.8 8,354.8 10,354.8
-------------------------------------------------------------------------------------------------------------
Annual Domestic per Subscriber Rate ($) $ 0.000 $ 0.560 $ 1.030 $ 1.150 $ 1.270
Annual International per Subscriber Rate ($) $ 0.995 $ 1.290 $ 1.363 $ 1.527 $ 1.701
-------------------------------------------------------------------------------------------------------------
Domestic Advertising Revenue per Subscriber ($) $ 0.289 $ 0.435 $ 0.674 $ 0.882 $ 0.960
International Advertising Revenue per Subscriber ($) $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000
-------------------------------------------------------------------------------------------------------------
Capital Expenditures $ 0.5 $ 0.5 $ 0.5 $ 0.5 $ 0.5
Launch Support Payments $ 3.0 $ 3.0 $ 3.0 $ 3.0 $ 3.0
Salomon Smith Barney
A Member of TravelersGroup
58 12
COMPARISON OF KEY RATIOS
Summary Financial Data Projected fiscal year ended July 31,
(Dollars in Millions, except where noted) 1998 1999 2000 2001 2002
-------------------------------------------------------------------------------------------------------------
Revenue Growth
Management Case 97.8% 272.1% 115.4% 53.7% 22.0%
Sensitivity Model 49.4% 306.7% 118.9% 55.1% 36.3%
-------------------------------------------------------------------------------------------------------------
EBITDA Margin
Management Case (331.8%) (33.2%) 30.0% 49.1% 56.8%
Sensitivity Model (802.9%) (149.5%) (27.0%) 9.4% 28.2%
-------------------------------------------------------------------------------------------------------------
EBIT Margin
Management Case (396.6%) (51.9%) 20.8% 42.8% 51.3%
Sensitivity Model (933.3%) (183.8%) (43.7%) (2.1%) 19.3%
-------------------------------------------------------------------------------------------------------------
Underlying Operating Assumptions
-------------------------------------------------------------------------------------------------------------
Annual Domestic Subscriber Rate Growth
Management Case NM NM 83.9% 11.7% 10.4%
Sensitivity Model NM NM 83.9% 11.7% 10.4%
-------------------------------------------------------------------------------------------------------------
Annual International Subscriber Rate Growth
Management Case (31.3%) 29.7% 5.6% 12.0% 11.4%
Sensitivity Model (31.3%) 29.7% 5.6% 12.0% 11.4%
-------------------------------------------------------------------------------------------------------------
Domestic Advertising Revenue per Subscriber Growth
Management Case (19.1%) 50.5% 54.9% 30.8% 8.8%
Sensitivity Model (19.1%) 50.5% 54.9% 30.8% 8.8%
-------------------------------------------------------------------------------------------------------------
International Advertising Revenue per Subscriber
Management Case NM NM NM NM NM
Sensitivity Model NM NM NM NM NM
-------------------------------------------------------------------------------------------------------------
Total Average Billable Subscribers
Management Case 163.4% 424.0% 45.1% 28.8% 11.1%
Sensitivity Model 147.9% 75.0% 42.9% 30.0% 23.1%
-------------------------------------------------------------------------------------------------------------
Salomon Smith Barney
A Member of TravelersGroup
59 13
MANAGEMENT PROJECTION ISSUES: RESTAURANTS
Restaurants
Start-up business
Format of developments (club vs. restaurant)
Targeted number of sites.
Expected margins
Timing to break-even profitability
Management of business
Required capital investment
Salomon Smith Barney
A Member of TravelersGroup
60 14
RESTAURANT PROJECTIONS
Summary Financial Data Projected fiscal year ended July 31,
(Dollars in Millions, except where noted) 1998 1999 2000 2001 2002
--------------------------------------------------------------------------------------------------
Food Sales $ 5.6 $ 17.0 $32.4 $45.5 $48.9
Beverage Sales 2.8 8.4 16.0 22.5 24.2
Retail Sales 0.5 1.6 3.1 4.3 4.6
--------------------------------------------------------------------------------------------------
Total Revenue $ 8.8 $ 27.0 $51.5 $72.2 $77.7
Cost of Sales $ 2.3 $ 7.1 $13.5 $19.0 $20.4
Variable Expense 5.8 17.6 33.1 45.3 46.8
--------------------------------------------------------------------------------------------------
EBITDA $ 0.7 $ 2.4 $ 4.8 $ 8.0 $10.5
Management Fee $ 0.4 $ 1.4 $ 2.6 $ 3.6 $ 3.9
--------------------------------------------------------------------------------------------------
Adj. EBITDA $ 0.3 $ 1.0 $ 2.3 $ 4.4 $ 6.6
Depreciation & Amortization $ 0.5 $ 1.1 $ 2.0 $ 2.7 $ 2.7
--------------------------------------------------------------------------------------------------
EBIT ($0.2) ($0.1) $ 0.3 $ 1.7 $ 3.9
Underlying Operating Assumptions
--------------------------------------------------------------------------------------------------
New Restaurants 2 2 5 0 0
End of Year Restaurants 3 5 10 10 10
Capital Expenditures $ 8.0 $ 8.1 $20.1 $ 0.3 $ 0.3
--------------------------------------------------------------------------------------------------
Year of Operation 1 2 3 4 5 6
--------------------------------------------------------------------------------------------------
Total Revenue per Store (a) $6.28 $ 6.75 $ 7.26 $7.80 $8.39 $9.01
Total Variable Expense per Store (a) $4.20 $ 4.39 $ 4.59 $4.68 $4.78 $4.88
--------------------------------------------------------------------------------------------------
(a) Represents start-up curve associated with opening of restaurants.
Salomon Smith Barney
A Member of TravelersGroup
61 15
COMPARISON OF SELECTED MINORITY BUYOUTS
Percent Increase in Final Bid vs. Initial Bid
While the average increase in minority buyout offers is 7.2%, the range is 0% to
51.2%
The BET transaction at $63 per share represents a 57.5% premium over the market
price prior to the original offer and a 31% premium over the initial offer
[Bar graph reflecting the following information:
% Increase
in Offer Frequency
---------- ---------
0 21
0.1-5.0 18
5.1-10 12 Mean
10.1-15 14
15.1-20 3
20.1-25 0
25.1+ 4 BET]
[Goldman Sachs Logo]
62
COMPARISON OF SELECTED MINORITY BUYOUTS
Percent Increase in Offer vs. Initial Premium Over Market Price
Descriptive Statistics
- ----------------------
Percent Increase in Offer:
Mean: 7.2
Range: 51.2
St. Dev.: 9.9
Initial Premium:
Mean 16.4
Range: 58.3
St. Dev.: 13.9
[Scatter chart reflecting the following information:
Initial Premium Percent
Over Market Increase
Price in Offer
- ----- --------
42.9 0.0
9.3 1.3
14.3 11.1
2.1 11.0
16.0 1.9
15.5 7.1
2.1 11.0
16.0 21.9
26.8 13.3
22.5 6.7
20.4 12.5
(2.5) 13.5
32.2 0.0
(1.3) 7.7
9.3 3.4
10.4 15.0
(3.1) 0.0
30.9 0.0
9.2 51.2
5.5 1.8
0.1 0.0
3.6 0.1
(5.9) 0.0
13.5 2.5
0.0 4.9
13.8 15.2
[Goldman Sachs Logo]
63
[Chart continued from previous page]
9.5 8.0
26.2 2.2
44.0 0.0
28.5 5.6
22.3 0.0
(2.7) 6.5
30.1 2.9
0.0 0.1
34.1 2.7
18.5 0.0
0.0 26.7
52.4 10.6
37.1 0.0
31.2 4.8
28.7 6.7
14.3 4.2
9.8 13.2
17.1 41.7
34.8 9.7
0.1 12.7
0.2 0.0
4.0 10.5
18.9 0.0
15.2 4.4
20.6 0.0
9.5 2.6
19.0 16.7
11.1 4.1
17.5 1.6
11.7 19.4
36.2 5.1
(2.1) 13.0
30.6 31.3
23.3 8.5
32.2 0.1
41.0 11.4
6.0 10.6
20.0 31.0]
SUMMARY OF OFFER PRICE CHANGES FOR SELECTED
MINORITY INTEREST BUYOUT TRANSACTIONS
Company Initial Price Final Offer % Change
- ---------------------------------------------------------------------------------------
BIC Corporation $36.50 per share $40.50 per share 11%
Rhone Poulenc Rorer $92.00 per share $97.00 per share 5
La Petite Academy $9.50 per share $10.00 per share 5
Ocean Drilling & Exploration 0.5 share of Murphy 0.55 share of Murphy 10
($17.63 value) ($19.39 value)
Mean Change 8%
BET Holdings $48.00 per share $63.00 per share 31
[Goldman Sachs Logo]
64
SUMMARY OF OFFER PRICE CHANGES FOR SELECTED [Goldman Sachs Logo]
MINORITY INTEREST BUYOUT TRANSACTIONS
Initial Offer Market Price Premium Market Price Premium
Company Price Per Share Previous Day to Market Final Offer Previous Day to Market
- --------------------- --------------- ------------ ---------- ----------- ------------ ----------
BIC Corporation $36.50 $35.75 2% $40.50 $39.38 3%
Rhone Poulenc Rorer 92.00 79.44 16 97.00 94.56 3
La Petite Academy 9.50 8.25 15 10.00 8.88 13
Ocean Drilling 17.63 value 17.00 4 19.39 value 16.38 18
& Exploration
Mean Premiums 9 9
BET Holdings 48.00 40.00 20 63.00 54.69 15
65
COMPARISON OF SELECTED BUYOUTS BY [Goldman Sachs Logo]
SIGNIFICANT EXISTING SHAREHOLDERS
Stock Price Initial Inside
One Day 52 Week Premium Ownership
Acquiring Company/ Prior to Date of High Prior Over 52 Before the
Date Acquired Company Ann. Ann. to Ann. Week High Transaction
- -----------------------------------------------------------------------------------------------------
Median of Buyouts With >85% Existing Ownership (5.9)% 86.9%
Pending Petrofina S.A. $ 62.25 2/28/97 $ 62.50 (4.0)% 85.4%
Fina Inc.
8/97 Rhone-Poulenc/ 79.44 6/26/97 80.88 13.7 68.0
Rhone-Poulenc Rorer Inc.
4/97 Zeneca Group PLC/ 42.00 3/27/97 29.25 40.7 50.0
Salick Health Care
3/97 Tembec Inc./ 7.00 1/23/97 7.00 42.9 51.0
Spruce Falls
2/97 Hoechst AG/ 266.21 12/10/96 273.78 7.6 56.5
Roussel-Uclaf
10/96 Time Warner/ 23.70 8/29/95 23.70 25.8 19.0
Turner Broadcasting
9/96 Chemed Corp./ 36.50 8/9/96 41.50 (1.2) 58.1
Roto-Rooter Inc. (Chemed Corp.)
8/96 Investor Group/ 2.90 7/1/96 3.40 (30.0) 51.0
Macallan-Glenlivet
4/96 BHP/ 2.80 12/18/95 2.81 8.9 49.5
Tubemakers
1/96 Berkshire Hathaway Inc./ 55.75 8/25/95 68.63 2.0 52.4
GEICO Corp (Berkshire Hathaway)
12/95 COBE Laboratories/ 15.75 7/14/95 19.38 (7.1) 53.0
REN-Corp-USA (COBE Labs)
12/95 BIC SA/ 35.75 5/19/95 38.88 (6.1) 78.0
Bic Corp (BIC SA)
10/95 McCaw Cellular/ 109.88 4/7/95 140.50 (9.3) 52.0
LIN Bdcstg (McCaw Cellular)
9/95 PacifiCorp/ 24.25 11/2/94 29.50 (5.1) 86.6
Pacific Telecom (PacifiCorp)
6/95 Club Mediterranee SA/ 22.63 4/5/95 26.00 1.0 70.8
Club Med
66
[Chart continued from previous page]
Aggregate Initial Final
Consideration Initial Premium Final Bid Premium Percent
for Amount Bid Per Over Market Per Over Market Increase
Acquired (000's) Share Price Share Price in Offer
- --------------------------------------------------------------------------------
0.0% 18.3% 7.1%
$257,000 $60.00 (3.6)% N.A. N.A. N.A.
434,000 92.00 15.8 $ 97.00 22.1% 5.4%
234,000 N.A. N.A. 41.15 N.A. 0.0
175,000 N.A. N.A. 10.00 42.9 0.0
3,500,000 N.A. N.A. 294.53 10.6 0.0
6,880,700 N.A. N.A. 29.81 25.8 0.0
88,250 N.A. N.A. 41.00 12.3 0.0
137,200 N.A. N.A. 2.38 (13.0) 0.0
446,900 3.06 9.3 3.10 10.7 1.3
2,347,000 N.A. N.A. 70.00 25.6 0.0
177,700 18.00 14.3 20.00 27.0 11.1
212,600 36.50 2.1 40.50 13.3 11.0
3,323,400 127.50 16.0 129.90 18.2 1.9
159,000 28.00 15.5 30.00 23.7 7.1
135,600 26.50 1.6 32.00 41.4 21.9
COMPARISON OF SELECTED BUYOUTS BY [Goldman Sachs Logo]
SIGNIFICANT EXISTING SHAREHOLDERS
Stock Price Initial Inside
One Day 52 Week Premium Ownership
Acquiring Company/ Prior to Date of High Prior Over 52 Before the
Date Acquired Company Ann. Ann. to Ann. Week High Transaction
- ---------------------------------------------------------------------------------------------------
5/95 GTE Corp/ $17.75 9/8/94 $ 21.25 5.9% 90.0%
Contel Cellular Inc.
3/95 Siemens AG/ 12.25 1/9/95 16.00 (6.3) 14.2
Pyramid Technology
3/95 Proventus AB/ 3.70 12/15/94 4.29 N.A. 78.2
Aritmos AB
3/95 Dole Food Co. Inc./
Castle & Cooke Homes, Inc. 11.63 8/24/94 15.38 (8.9) 82.8
1/95 WMX Technologies Inc./ 8.00 7/28/94 10.88 (28.3) 78.5
Chemical Waste Management
1/95 Adia SA/ 26.50 3/23/94 33.25 5.3 81.0
Adia Services Inc.
12/94 Ogden Corp./ 17.38 6/6/94 24.25 (29.2) 83.2
Ogden Services
10/94 National Intergroup Inc./ 13.50 3/1/94 13.75 7.3 80.5
FoxMeyer
9/94 EW Scripps Co./ 78.50 2/17/94 86.00 0.7 86.0
Scripps Howard Broadcasting
7/94 Burlington Resources/ 4.63 4/26/94 6.75 (33.6) 87.1
Diamond Shamrock Offshore
6/94 Colonia Konzern AG/ 1,309.00 2/28/94 1,335.00 28.3 57.9(e)
Nordstern Allgemeine
4/94 Triarc Cos/ 15.50 4/26/93 16.50 2.6 71.0
Southeastern Public Service Co.
4/94 Medco Containment Services/ 25.75 10/13/93 36.50 (25.3) 54.2
Medical Marketing Group
4/94 Quartex Corp/CMS/ 1.63 7/1/93 2.13 30.8 65.0
Data Corp
67
[Chart continued from previous page]
Aggregate Initial Final
Consideration Initial Premium Final Bid Premium Percent
for Amount Bid Per Over Market Per Over Market Increase
Acquired (000's) Share Price Share Price in Offer
- ----------------- ------- ------------ --------- ------------ ---------
$254,300 $22.50 26.8% $25.50 43.7% 13.3%
261,700 15.00 22.5 16.00 30.6 6.7
141,300 N.A. N.A. 4.38 18.4 0.0
81,500 14.00 20.4 15.75 35.4 12.5
397,400 7.80 (2.5) 8.85 10.6 13.5
83,639 35.02(a) 32.2 N.A. N.A. 0.0
119,000 17.16 (1.3) 18.48 6.3 7.7
84,028 14.75(b) 9.3 0.90 13.0 3.4
shares(c)
125,386(d) 3 shares 10.4(d) 3.45 shares 26.9(d) 15.0
42,600 4.49 (3.1) N.A. N.A. 0.0
520,969(f) 1,713.00 30.9 1,713.00 30.9 0.0
86,140 0.55 9.2 .80 shares 65.2 51.2
shares and
122,510 27.25 5.5 27.75 7.8 1.8
26,740 6.52 400.0 7.00 328.6 7.4
COMPARISON OF SELECTED BUYOUTS BY [Goldman Sachs Logo]
SIGNIFICANT EXISTING SHAREHOLDERS
Stock Price Initial Inside
One Day 52 Week Premium Ownership
Acquiring Company/ Prior to Date of High Prior Over 52 Before the
Date Acquired Company Ann. Ann. to Ann. Week High Transaction
- ----------- ----------------------------- --------------- -------- ------------- ---------- --------------
2/94 Holderbank Financiere Glaros/ $ 6.75 1/7/94 $ 7.75 (0.0)% 95.0%
Holham Inc.
1/94 Standard Industries Inc./ 7.00 5/19/93 9.75 (25.6) 8.8
Wellington Leisure Products,
Inc.
12/93 Valley Fashions Corp./ 48.88 9/20/93 51.13 (10.0) 95.0
West Point-Pepperell
Inc.
10/93 Torchmark/ 26.88 2/22/93 30.25 0.8 83.0
United Investors Management
5/93 Rust International Inc./ 17.88 11/13/92 23.88 (25.1) 56.0
Brand Cos Inc.
7/92 W.R. Grace & Company/ 15.25 3/2/92 19.00 (13.2) 83.4
Grace Energy Corporation
5/92 Unocal Corp./ 9.88 2/24/92 12.00 (9.8) 95.3
Unocal Exploration Corp.
5/92 Envirosource Inc./ 9.00 8/2/91 15.00(g) (24.3) 62.5
Envirosafe Services Inc.
Partially BLV Acquisition Corp./ 4.38 3/20/92 5.38 17.1 54.8
Completed Belvedere Corp.
1/92 Arkla Inc./ 14.25 9/18/91 20.88 (12.3) 82.0
Arkla Exploration Co.
12/91 Siemens AG/ 120.62 10/21/91 N.A. N.A. 78.0(h)
Siemens Nixdorf Information
Systems
12/91 Tele-Communications Inc./ 13.50 5/1/91 16.50 (20.4) 57.2
United Artists Entertainment Co.
10/91 LAC Minerals/ N.A. 2/8/91 6.25 N.A. 64.7
Bond International
10/91 Air & Water Technologies/ 15.25 3/1/91 31.50 (37.0) 82.0
Metcalf & Eddy Cos.
4/91 Murphy Oil Corp/ 16.63 4/6/89 22.63 (0.2) 61.0
Ocean Drilling & Exploration
68
[Chart continued from previous page]
Aggregate Initial Final
Consideration Initial Premium Final Bid Premium Percent
for Amount Bid Per Over Market Per Over Market Increase
Acquired (000's) Share Price Share Price in Offer
- -------------------------------------------------------------------------------
$51,700 $7.65 0.0% N.A. N.A. 0.0
3,683 7.25 3.6 $7.63 0.0% 0.0%
66,300 46.00 (5.9) N.A. N.A. 0.0
216,591 30.50 13.5 31.25 16.3 2.5
185,000 17.88 0.0 18.75 4.9 4.9
77,501 16.50 13.8 19.00 31.0 15.2
120,418 0.50 9.5 0.54 18.3 8.0
shares shares
14,400 2.70 26.2 5.00 29.0 2.2
shares shares
16,900 6.30 44.0 N.A. N.A. N.A.
92,640 0.90 28.5 0.95 35.6 5.6
shares shares
1,302,423(i) 147.52 22.3 147.52 22.3 0.0
1,189,000 .95(j) (2.7) 1.02(k) 3.6 6.5
shares shares
85,000 0.53(l) N.A. N.A. N.A. 0.0
shares
42,000 0.85 30.1 0.88 33.9 2.9
shares shares
366,242 0.50 0.0 0.55 0.1 0.1
shares shares
COMPARISON OF SELECTED BUYOUTS BY [Goldman Sachs Logo]
SIGNIFICANT EXISTING SHAREHOLDERS
Stock Price Initial Inside
One Day 52 Week Premium Ownership
Acquiring Company/ Prior to Date of High Prior Over 52 Before the
Date Acquired Company Ann. Ann. to Ann. Week High Transaction
- ------- ------------------------------ ----------- -------- ------------- ---------- --------------
4/91 Ogden Corp./ $11.00 10/23/90 $14.75 0.0% 68.3%
ERC Environmental &
Energy Services
3/91 BHP Holdings/ 33.75 2/6/91 44.50 (10.1) 50.1
Hamilton Oil Corp.
2/91 Paramount Comm./ N.A. 7/12/90 N.A. N.A. 74.8
TVX Broadcast Group
11/90 National Intergroup Inc./ 2.62 12/20/89 6.75 0.4 44.1(m)
Permian Partners L.P.
11/90 Pier 1 Imports Inc. 8.75 9/25/90 N.A. N.A. 50.4
(of Intermarke Inc.)/
Sunbelt Nursery Group Inc.
11/90 Freeport-McMoRan Inc./ 8.00 7/31/90 11.13(o) (5.7) 81.5
Freeport-McMoRan Oil & Gas
10/90 Primerica Corp./ 9.75 4/18/89 11.38(r) 10.3 82.6
American Capital Mgmt.
& Research
10/90 Renault Vehicules Industrial/ 5.25 7/6/90 21.13 (71.6) 44.5(u)
Mack Trucks Inc.
9/90 Kansas City Southern 12.75 5/17/90 15.00 (6.7) 87.1
Industries, Inc./
DST Systems Inc.
9/90 Fuji Heavy Industries/ 5.13 1/16/90 8.50 (29.4) 49.5
Subaru of America
8/90 Imetal S.A./ 11.50 1/24/90 16.00 (3.1) 55.6
Copperweld Corp. Steel
8/90 American Express Company/ 14.50 3/2/90 N.A. N.A. 68.4(v)
Shearson Lehman Brothers
6/90 DeGeorges/ 11.50 3/19/90 27.25 (0.1) 51.0
LPL Technologies, Inc.
6/90 Esselte A.B./ 41.83 10/3/89 38.00 14.5 78.5
Esselte Business Systems, Inc.
5/90 Montedison S.p.A./ 31.12 N.A. 32.13 15.2 71.3
Erbamont
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[Chart continued from previous page]
Aggregate Initial Final
Consideration Initial Premium Final Bid Premium Percent
for Amount Bid Per Over Market Per Over Market Increase
Acquired (000's) Share Price Share Price in Offer
- --------------------------------------------------------------------------------
$ 38,000 $14.75 34.1% $15.13 37.5% 2.7%
530,000 40.00 18.5 40.00 18.5 0.0
46,576 7.50 N.A. 9.50 N.A. 26.7
59,063 4.00 52.4 4.425(n) 68.6 10.6
20,704 12.00 37.1 12.00 37.1 0.0
239,161 0.27-0.329 31.2 0.283-0.345 37.5 4.8
shares(p) shares(q)
48,752 0.30 28.7 0.32 37.3 6.7
shares(s) shares(t)
or 11.50
103,145 6.00 14.3 6.25 19.1 4.2
35,000 14.00 9.8 15.85 24.3 13.2
208,414 6.00 17.1 8.50 65.9 41.7
781,571 15.50 34.8 17.00 47.8 9.7
393,515 0.43 0.1 0.48 12.8 12.7
shares(w) shares(x)
37,500 24.00 0.2 25.00 0.3 0.0
219,298 43.50 4.0 48.06 14.9 10.5
465,904 35.00 18.9 37.00 18.9 0.0
2.00(y)
COMPARISON OF SELECTED BUYOUTS BY [Goldman Sachs Logo]
SIGNIFICANT EXISTING SHAREHOLDERS
Stock Price Initial Inside
One Day 52 Week Premium Ownership
Acquiring Company/ Prior to Date of High Prior Over 52 Before the
Date Acquired Company Ann. Ann. to Ann. Week High Transaction
- --------------------------------------------------------------------------------------------------------
4/90 Anderson Group PLC/ $ 7.38 2/16/90 $ 8.38 1.5% 51.2%
National Mine Service Co.
3/90 Heritage Media Corp./ 17.00 12/1/88 9.50 115.8 57.0
Pop Radio Corp.
2/90 Carlson Companies, Inc./ 13.25 5/19/89 13.75 5.5 68.0
TGI Friday's Inc.
1/90 Dow Jones & Co. Inc./ 15.13 9/21/89 16.38 9.8 66.2
Telerate, Inc.
1/90 Montedison S.p.A./ 44.13 7/31/89 46.00 6.5 81.0
HIMONT Inc.
1/90 Tele-Communications Inc./ 27.00 5/24/89 24.00 32.3 75.0
WestMarc Communications
12/89 General Accident Fire & Life/ 0.28 6/16/89 1.38 N.A. 51.0
NZI Corp. Ltd.
11/89 Primerica Corporation/ 17.88 6/9/89 21.25(z) (5.9) 69.8
The A.L. Williams Corporation
11/89 Mayfair Acquisition Corp/ 17.25 4/3/89 25.25 (6.9) 71.0
Mayfair Super Markets, Inc.
10/89 ENSERCH Corp./ 11.25 2/15/89 12.75 (13.6) 87.4
ENSERCH Exploration Partners
9/89 United Meridian Corporation/ 6.13 1/27/89 9.00 (11.1) 60.1
Ensource Inc.
8/89 The Henley Group, Inc./ 19.25 6/8/89 21.38 (4.1) 80.2
Fisher Scientific Group, Inc.
6/89 Zayre Corp./ 26.38 12/5/88 27.13 0.3 83.0
The TJX Companies, Inc.
6/89 Allied Irish Banks plc/ 25.00 9/12/88 27.68 27.3 49.7
First Maryland Bancorp.
5/89 Investors (Private-USA)/ 5.25 12/6/88 8.50 (30.9) 69.0
Sage Energy Co.
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[Chart continued from previous page]
Aggregate Initial Final
Consideration Initial Premium Final Bid Premium Percent
for Amount Bid Per Over Market Per Over Market Increase
Acquired (000's) Share Price Share Price in Offer
- ------------------------------------------------------------------------------
$21,000 $8.50 15.2% $8.88 20.3% 4.4%
32,243 20.50 20.6 20.50 20.6 0.0
53,525 14.50 9.5 14.88 12.3 2.6
657,394 18.00 19.0 21.00 38.8 16.7
653,811 47.00 11.1 51.00 15.6 4.1
2.00(y)
209,625 31.75 17.5 32.25 19.4 1.6
175,000 N.A. N.A. 0.37 32.1 0.0
532,795 0.80 11.7 0.82-0.85 33.4 19.4
shares(1) shares(2)
193,600 23.50 36.2 24.70 43.2 5.1
151,194 0.50 (2.1) 0.50 10.7 13.0
shares shares and
26,341 8.00 30.6 10.50 71.4 31.3
119,801 20.50 23.3 22.25 33.8 8.5
314,081 1.35 32.2 1.45 0.4 0.1
shares(4) shares(4)
365,000 35.25 41.0 39.25 57.0 11.4
22,083 5.88 6.0 6.50 17.3 10.6
PRIME TIME RATINGS TREND
QUARTERLY, 1991 - 1997
USA Sci Fi A&E BET CMT CNN DSC E! ESPN FAM LIFE TBS TNN TNT
- --------------------------------------------------------------------------------------------------
1Q 91 2.40 0.70 0.60 1.00 1.40 0.90 1.20 2.50 1.20 1.60
2Q 91 1.80 0.70 0.50 1.10 0.90 1.70 0.80 1.20 1.80 1.20 1.90
3Q 91 2.30 1.30 0.50 0.40 1.20 0.90 2.20 0.70 1.20 2.20 1.10 1.90
4Q 91 2.20 0.70 0.50 0.30 1.40 1.00 2.40 0.90 1.20 2.50 1.40 1.70
1Q 92 2.60 0.80 0.40 0.30 1.30 1.30 1.80 1.50 1.30 2.50 1.40 1.50
2Q 92 2.10 0.70 0.40 0.40 1.20 0.90 1.60 0.80 1.10 2.00 1.10 2.00
3Q 92 2.30 0.80 0.50 0.50 1.50 0.90 1.70 0.80 1.20 2.40 1.10 1.90
4Q 92 2.20 0.90 0.70 0.50 1.90 1.00 2.30 1.00 0.90 2.20 1.20 1.70
1Q 93 2.30 0.90 0.70 0.40 1.20 1.10 0.10 1.70 1.10 1.10 2.10 1.10 1.50
2Q 93 2.30 0.90 0.60 0.40 0.90 0.90 0.20 1.50 0.90 1.00 2.20 0.90 1.90
3Q 93 2.30 0.70 0.90 0.50 0.40 0.90 1.00 0.20 1.80 0.60 1.20 2.50 0.90 1.80
4Q 93 2.20 0.60 0.90 0.60 0.40 0.90 0.90 0.30 2.00 0.90 1.00 2.30 0.90 1.80
1Q 94 2.40 0.60 1.00 0.60 0.30 0.90 1.00 0.30 1.30 1.00 1.00 2.00 0.90 1.40
2Q 94 2.30 0.50 1.00 0.60 0.30 0.90 1.00 0.30 1.60 1.00 1.10 2.20 1.00 2.00
3Q 94 2.30 0.50 1.10 0.60 0.30 1.20 0.90 0.20 1.60 0.90 1.30 1.80 1.00 1.90
4Q 94 2.30 0.60 1.10 0.70 0.40 1.00 1.00 0.20 2.60 1.10 1.20 1.80 1.20 1.80
1Q 95 2.60 0.80 1.14 0.60 0.40 1.33 1.18 0.42 1.40 1.10 1.32 1.98 1.10 1.61
2Q 95 2.20 0.60 1.02 0.60 0.40 1.20 1.13 0.40 1.30 0.90 1.46 1.90 1.00 2.40
3Q 95 2.20 0.60 0.92 0.60 0.30 1.51 1.19 0.39 1.19 1.22 1.51 1.78 0.80 2.35
4Q 95 2.30 0.60 1.02 0.60 0.30 1.00 1.19 0.33 2.35 1.29 1.62 2.01 1.00 1.84
1Q 96 2.20 0.50 1.37 0.70 0.30 0.86 1.29 0.36 1.36 1.46 1.68 2.12 0.90 1.98
2Q 96 1.90 0.50 1.25 0.60 0.30 0.75 1.11 0.32 1.50 1.15 1.42 1.87 0.90 2.12
3Q 96 1.80 0.80 1.14 0.50 0.30 0.90 1.16 0.28 1.19 1.25 1.34 1.92 0.80 2.45
4Q 96 1.90 0.70 1.24 0.40 0.40 0.87 1.17 0.30 2.15 1.20 1.35 1.99 0.90 2.09
1Q 97 2.00 0.70 1.35 0.40 0.30 0.94 1.21 0.38 1.28 1.19 1.46 1.80 1.00 1.99
2Q 97 1.80 0.70 1.33 0.40 0.30 0.78 1.25 0.30 1.28 1.06 1.53 1.85 0.90 2.41
3Q 97 (a) 2.00 0.70 1.38 0.50 0.30 0.75 1.07 0.34 1.10 1.22 1.43 1.44 0.80 2.53
(a) Based on October ratings from Paul Kagan and Associates.
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