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View Full Version : 6/27 - NY Daily News - Viacom wants to buy Vivendi's cable nets


uisceboo
06-29-2003, 08:34 PM
http://www.nydailynews.com/business/story/95937p-86928c.html
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New York Daily News - Viacom wants to buy
Vivendi's cable nets
By PHYLLIS FURMAN
DAILY NEWS BUSINESS WRITER
Friday, June 27th, 2003

Mel and Sumner are jumping into the Vivendi derby.
Add Viacom bosses Mel Karmazin and Sumner Redstone to a star-studded list of media honchos bidding to buy the Vivendi Universal entertainment assets.

CBS-owner Viacom has "expressed interest" in Vivendi's cable networks, Sci Fi Channel and USA Network, sources said yesterday.

But the powerful media giant isn't looking to buy the other Vivendi media assets, which include the Universal theme parks, movie studio, and music empire.

With Viacom joining the party, there are now six groups in what has turned into the most high profile auction of media assets in years.

The other bidders are General Electric's NBC, John Malone's Liberty Media, former Seagram boss Edgar Bronfman Jr., oil tycoon Marvin Davis, and Kirk Kerkorian's MGM. The offers will be presented to a July 1 board meeting, and in the following weeks the field will be narrowed to two or three bidders.

By planting their flag now, Karmazin and Redstone are positioning themselves for a side deal down the road.

Under one possible scenario, the suitor who ends up with the entire Vivendi entertainment empire would look to sell some assets to help fund the deal. That's when Viacom would show up ready to take Sci Fi and possibly USA off the buyer's hands.

"At some point, some of the bidders may join up," a source said.

Viacom's primary interest is in Sci Fi, home of the hit Steven Spielberg mini-series "Taken." The media giant specializes in niche cable networks with highly defined audiences, like teen magnet MTV.

Sci Fi is especially desirable because it would make a good home for Viacom's library of "Star Trek" reruns and movies, said S.G. Cowen media analyst Lowell Singer.

But bagging the Vivendi cable networks is far from a sure thing. Some of the Vivendi bidders would almost surely hold on to Sci Fi and USA if they won.

That list includes NBC, which wants to expand its cable programing portfolio and MGM, which sees the cable nets as a distribution platform for its vast film library.
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AnnieBW
07-01-2003, 09:03 AM
A side deal may well be in the works, especially for Skiffy. Viacom doesn't need studios or theme parks - they have Paramount for that. (And having been at Universal Studios in CA and toured Paramount, I can tell you which one is the better studio!)

- Annie

uisceboo
07-02-2003, 03:28 PM
The day I did this I looked over about ten other articles, and what I read is consistant with what I have been reading all along -- there is a lot of jockying going on for not only who-buys-what, but for whether or not "what" get's broken down into smaller packages -- and this is entirely normal procedure.
<snorts>
Sounds like mating habits of herd animals. :coffee:

waltersgirl
07-02-2003, 04:08 PM
from www.showbizdata.com's daily news wire dated yesterday.

GOING, GOING ... ?

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Analysts are suggesting that none of the bids put forth for Vivendi Universal's U.S. entertainment assets is clearly superior to the rest. The Vivendi board of directors is due to evaluate the six competing offers today (Tuesday), but in a report on the planned meeting, which will take place in Paris, Reuters commented today, "Vivendi has not received a knock-out bid." Meanwhile, MGM, in an apparent effort to raise cash to finance its bid for the Vivendi units, announced Monday that it had agreed to sell its 20-percent stake in American Movie Classics, the Independent Film Channel, and WE: Women's Entertainment channel to Cablevision's Rainbow Media for $500 million. It said that it would record a $93-million loss on the transaction. Anthony Valencia, a media analyst with TCW Group Inc., told Bloomberg News, "It makes their balance sheet look great, and they should have about $1.1 billion or $1.2 billion in cash" after the sale. Cablevision is backing a bid from former Universal owner Edgar Bronfman Jr.