Media news/analysis in brief - (April 18, 2005)

Companies mentioned below:

• Movie Gallery (ticker: MOVI)
• Hollywood Entertainment (ticker: HLYW)
• DirecTV (ticker: DTV)
• Warner Music (privately held)
• Vivendi Universal (ticker: V)
• XM Satellite Radio (XMSR)

• Movie Gallery announced its intention to raise up to $325 million by issuing senior notes due in 2012.  The company will use the proceeds to fund its acquisition of Hollywood Entertainment, to purchase HLYW's 9.625% Senior Subordinated Notes and to pay fees and expenses.  MOVI expects to complete the private placement later this month.
• Morgan Stanley increased its 2005 revenue forecasts for DirecTV to $13.06 billion from $12.92 billion.  The brokerage firm also expects DTV to add 1.3 million net subscribers and buy back $2.5 billion worth of stock this year.
• Warner Music has purchased a 50% stake in Sean "P-Diddy" Combs' Bad Boy records for $30 million over 3 years.  Previously, Combs had a $10 million agreement with Vivendi Universal (ticker: V) which was set to expire in mid-2006.  Bad Boy's roster includes P-Diddy, Mase, Mario Winans and the late Notorious B.I.G.
• XM Satellite Radio announced that it has nominated Eddy W. Hartenstein and John W.
  Mendel to its board.  Hartenstein was the Chairman and CEO of the DirecTV Group from 2001 through 2004.  Mendel is a senior vice president at Honda Motors and has held senior management positions with Mazda, Lincoln Mercury and Ford Motors.