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I just listened to the Yahoo/Broadcast analyst conference call that's available for replay at this link:

http://webevents.broadcast.com/yahoo/mediabriefing0499/

FWIW, I took notes on the call:

Yahoo! Media Conference Call – April 1, 1999

4 Key Reasons for the Merger:

1. Leadership
- Broadcast.com is the leader for aggregating and serving rich media content on the web
- Broadcast has over 1 million users per day
- This asset becomes more important as bandwidth grows

2. Leverage
- Aggregate content with Yahoo, with world's most heavily trafficked network
- Yahoo has over 50 million unique visitors
- Combined, Yahoo/Broadcast will have one the largest set of content partners
- One of most integrated set of merchandising services
- Rich media format advertising

3. Speed and Time to Market
- Broadcast has critical mass and substantial lead over competition
- Viewers will be expecting more and more rich media content
- Will create truly unique content and array of services

4. People
- Broadcast is well-managed and has a complete team that's worked well for 4 years


Acquisition Policy:
Selectively acquire companies that bring growing customer base, great product, and strong management, and that will be neutral to acretive to EPS within a year.

Expected to be complete in the 3rd quarter.

Yahoo issues 0.7722 shares of YHOO per each share of BCST
Transaction is approximately valued at $5.6 Billion

Broadcast and Yahoo have relationship that extends back to 1997 when Yahoo took an equity position in Broadcast. BCST has tremendous respect for the Yahoo team, and this culture fit was one of the main reasons BCST chose to do the deal.

Yahoo will leverage BCST's multimedia expertise to enhance all of Yahoo's content.

Broadcast will “bring life” to every area of Yahoo!

Broadcast has sales expertise in “real-time corporate info.”

By joining Yahoo, Broadcast scales immediately.

Broadcast's key competitive advantage:
- 14% reach share, #1
- proven scalable streaming-media technology
- proven management
(*there were a few others, but I missed them*)

Yahoo! Finance will be one of the first areas to benefit from BCST's presence

Question and Answer Session

Q – Securing a broadband partner?
A – Not going to tie the knot with one provider

Q – Secure delivery of music on the web?
A – Agnostic from all devices, software, and formats. Support any and all platforms that are popular. Don't want to align with a standard, and thereby limit themselves.

Q – Advisors on the deal? And, who approached who?
A – Wishy washy, gave credit to everybody. Morgan Stanley advised.

Q – How is the $5.7 Billion price tag justified?
A – The price allows the deal to be accretive within 12 months, plus the deal is very strategic. There was no question that to home-grow what Broadcast has built would've been far too expensive and difficult versus merely buying the leader.

Q – Where is streaming media going?
A – Evolving model; as compression and broadband improve, customers will expect a richer media content experience. Just like there is radio, tv, and print media, the Internet will embody all of these forms of media.

Q – How will this alliance create a “transaction environment?”
A – The net is the only format for entertaining, informing, executing, and selling. Broadcast will help enable the advertising that compels impulse buys.

Q – Plans to improve video streaming?
A – These are the early days, but the format is already satisfying the corporate customers. For example, the Victoria's Secret IPO related video event was very successful in creating a substantial amount of e-commerce for Victoria's Secret..

Q – Pay-per-view events possible?
A – Maybe.

Q – Worried about other players competing in streaming media?
A – Of course. Real Media is a major competitor, but they're also mainly a software company, and as such, are a partner for providing the technology to make broadcast.com possible.

Q – Define “currency” in terms of Yahoo! Stock.
A – This is good old fashioned stock. Period.

Q – Overlap between the unique user base of Yahoo and broadcast.com?
A – No exact number available.

Q – how will you be able to integrate both the GeoCities and broadcast deals? And, tell us about the fact that Yahoo is becoming a multi-brand company, in retaining the GeoCities and broadcast names.
A – Branding strategy is maintaining an umbrella of brands under Yahoo. GeoCities will represent the neighborhood and homepage area of Yahoo.

Q – Integrating advertising?
A – Yes.

Q – streaming media prohibition (beyond 10 minutes) on cable modems? (*???*)
A – Considering that consumers buy cable modem access primarily to make technology like full-motion video feasible, that prohibition will likely be going away. Otherwise, this prohibition would open a gaping hole for consumers to switch to alternative broadband solutions like xDSL.


-Matt


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