Mr Diller resigns

[quendi]

reprinted from another post:

Here's the article from ft.com

"By Peter Thal Larsen in New York and Jo Johnson in Paris
Published: March 19 2003 15:58 | Last Updated: March 19 2003 15:58


Barry Diller relinquished his position as head of Vivendi Universal's entertainment operations ahead of a likely sale of the troubled French media group's assets.

Mr Diller announced his resignation as chairman of Vivendi Universal Entertainment on Wednesday. At the same time USA Interactive, the electronic services group run by Mr Diller, is expected to renew its offer for the shares it doesn't already own in Expedia, the online travel group.

Mr Diller has been chairman of VUE since last May, following Vivendi's acquisition of Mr Diller's US cable and television programming assets. Although the position was unpaid and not covered by a formal contract, it has given Mr Diller huge influence over Vivendi's entertainment operations, including its Universal movie studio and theme parks.

However, Mr Diller's position has also led to accusations of a conflict of interest. Under the terms of the contract Mr Diller negotiated with Vivendi, he is entitled to a large payout if the French group disposes of some of VUE's assets.

Vivendi is seeking buyers for its entertainment businesses as it attempts to reduce its debt load by E7bn by the end of the year. Media groups including Viacom, MGM and NBC have expressed an interest in its US cable channels, which include USA Network and the Sci-Fi channel, and may also be interested in the movie studio in order to get their hands on its film library.

Mr Diller is thought to be keen to take control of VUE, although he has so far not made an offer to Vivendi. But people involved in the discussions suggested his departure from VUE would clear the way for him to make a proposal.

Vivendi declined to comment. Mr Diller could not be reached for comment."

________
edited to print:

NEW YORK--(BUSINESS WIRE)--March 19, 2003--Barry Diller announced today he is resigning his position as CEO of Vivendi Universal Entertainment.
"My executive role was never intended to be permanent. Now that Vivendi Universal has begun a formal process in reviewing options for its entertainment assets, it is appropriate to step aside from any direct management responsibility. USA Interactive (Nasdaq: USAI) and I remain shareholders of Vivendi Universal Entertainment and we are all hopeful for a speedy resolution of its future.
"To the people of Universal, many of whom I've known and worked with for a very long time, and the many I've met these last 9 months: you have all done truly fine work during a very difficult and distracting period - your dedication to that work and to the preservation and continuation of the fine values of Universal and MCA's history is evidence of your own quality and values."

[Reefrunner]

Wooohoooo!!!!!!!

[Shipscat]

unfortunately, this may not be good news.

[Reefrunner]

Maybe not, but I'm glad he's out.

[Gaussian]

Why.......isn't this good news?

[Vampgrrl]

Dont let the door hit you on the ass.

[Shipscat]

He may be doing it so he can buy Vue, or some of the entertainment assets, like Scifi.

[Digger]

I believe he has already dropped out of the bidding process for VU's entertainment assets.

[Shipscat]

I certainly hope so.

[uisceboo]

Now he can go about his business and frell up The Home Shopaholic Network or The Food Channel like he wants to.

Actually, I pity his next victims. he needs to take up a hobby like golf instead of ruining networks.

DING DONG
THE DILLER'S DONE!

[Digger]

Here's a clarification of the Diller/VU situation:

Other names often mentioned as potential bidders (for VU's Entertaiment assets) include Liberty Media Corp. (L), News Corp (NCP), General Electric Co's (GE) NBC and Metro-Goldwyn-Mayer Inc.

Barry Diller, the media mogul who heads Vivendi's U.S. business, was also originally touted as a possible contender for the assets. But Diller has since taken a lower profile as he negotiates a financial exit from a partnership between his company and Vivendi's U.S. business.

The Wall Street Journal reported on Wednesday that Diller had told Fourtou he wanted to step down from his position overseeing the U.S. assets by May.

However, sources close to the company said he may still be interested in taking on Universal Studios were Vivendi to sell the assets piecemeal.

If that were the case, Viacom could then pick up the cable television assets while Vivendi's theme park partner, private equity house Blackstones, could take Vivendi's share in the theme parks, one source speculated.

[Shipscat]

That sounds better...where's the article from, digger?

[Gaussian]

It still sounds like good news to me. Maybe, new blood might take a second look at Farscape.

[Dominar of Action]

Mr Diller is thought to be keen to take control of VUE, although he has so far not made an offer to Vivendi. But people involved in the discussions suggested his departure from VUE would clear the way for him to make a proposal.This is what I've been afraid of since he announced his plans to leave. C'mon Viacom, outbid his a$$!!!

(BTW, I believe Digger's quote is from the WSJ and other articles that came out 2-3 weeks ago.)

[uisceboo]

more headlines:

http://www.businesswire.com/cgi-bin/cb_headline.cgi?&story_file=bw.031903/230785375&directory=/google&header_file=header.htm&footer_file=

http://cbs.marketwatch.com/news/story.asp?guid=%7BDE73CA20-1EE7-4E3C-AD82-F192548478C3%7D&siteid=mktw

http://www.ktul.com/showstory.hrb?f=n&s=79555&f1=ent

http://biz.yahoo.com/rb/030319/media_vivendi_2.html

I am confused, now. I really can't tell if this means anything to us at all, besides cheering us up.

[Rombaldi]

here's another story..

http://www.msnbc.com/news/887493.asp?0cm=c20

[Digger]

Yeah Dominar, the article I quoted was from the WSJ about 2 weeks ago.

Shipscat, there have been several threads about the situation in the OT Network News section if you want to go back and read some more about this.

[CosmicTheorist]

I have been thinking for some time (ie 2 weeks, since the article Digger quoted above) that Viacom and Diller could put together a deal to get Vivendi's "entertainment assets" that would leave them both with only the pieces they actually want.

Viacom has openly expressed interest in Skiffy, but to get Skiffy they may have to buy USA Networks too. Karmazin (?) was quoted in December (?) saying that Viacom didn't want USA Networks, just Skiffy.

Barry Diller has been described as being interested in building a media empire around Vivendi Universal Entertainment. That was last November or there about. Diller has been moving away from overseeing the cable channels he used to own. That is why Michael Jackson was brought in by Diller as the president and CEO of USA Entertainment, to relieve Diller of those oversight duties.

That looks to me like the basis of a deal. Viacom and Diller could put together an offer to Vivendi and then after the sale Viacom could walk away with Skiffy. Pure speculation on my part, of course. But this is not necessarily a bad thing for Skiffy or, more importantly, Farscape.

;)

[Vampgrrl]

I think the guys at Viacom and Diller kinda hate each other, ALOT.

[CosmicTheorist]

Diller and Vivendi also maybe. I have read stories about animosity between Davis and Diller, and Diller and the French executives at Vivendi. I don't recall reading anything about trouble between Diller and Viacom. Even so, business people have been known to do business even with people they hate if it gets them what they want.

It's still just speculation on my part (ie the part about Viacom and Diller maybe could do a deal that frees Skiffy from Vivendi control).

;)

[vhsiv]

Where is GE/NBC on this - it seemed to me that at one point, they were in the running for VUE, and that they would jump at the chance of owning the TV arm of Universal, given that they get all of their 'Law & Order' programming through Uni...

[Digger]

Here's the thing that will keep me up tonight. There were reports a few weeks ago that Diller would be stepping down in May. This new report doesn't give an effective date for his resignation. Is it effective immediately or in May? If immediately, does this just mean he's getting out of Dodge now because the sale of VUE assets are imminent or were the initial reports of stepping down in May erroneous? Or did he just decide to get it over with since it was already known he was going and this whole report means nothing in the big scheme of things?

[Dominar of Action]

Digger, the May date was given as a deadline. It was always suggested that it could occur earlier. I'm still nervous that the only reason Diller's stepping down is so he can make an independent bid on the assets without there being a conflict of interest, but this bit from the last article uisceboo posted makes me feel a bit better (although there is still wiggle room in that Diller is speaking on behalf of USA Interactive, and not necessarily for himself or any other group of investors he might pull together): "But it does raise a number of possibilities," the analyst said. "Firstly, he could be distancing himself from VUE because he wants to make a bid for those assets; alternatively he knew that Vivendi was going to exit this business anyway, so he just decided to go now rather than later."

Separately, in a conference call to discuss USA Interactive's acquisition of the remaining portion of Expedia Inc. it does not own, Diller said USA did not have any intention of making an offer to Vivendi about acquiring the VUE assets.

"We have no intention of making a proposal," Diller said, adding later, "Frankly, we're in a fine position doing essentially nothing."

[JA_Shipper]

Man, I hope Diller gets USA Networks and Viacom gets Sci Fi - then Diller can do whatever the frell he wants with USA while WE may actually get a REAL Sci Fi Channel that can revive Farscape!!

[Farsight]

Good riddance to old rubbish. :)

[Susana]

bump

[harveywhispers]

Don't know if it's good........don't know if it's bad........but, it brightened my day a little:D (sometimes it feels good to be petty).

hw

[AnnieBW]

Let's get rid of two evil dictators in one week - first Diller, then Saddam! :D

I'm hoping that he either concentrates on running USA Interactive, and Viacom gets Skiffy.

Sing it with me, Scaper brethren and sistren:

NA-NA-NA-NA
NA-NA-NA-NA
HEY, HEY, HEY,
GOODBYE!!!

- Annie

[JMax]

Sorry about the double post quendi. I just got so excited when I saw that Diller was out that I didn't even think to see if anyone else had posted the flash. LOL.

Your humble servant. ;)

[quendi]

it's all good, JMax. I got rather excited myself.....
I'm glad that we both got the news out.

[JMax]

:D

[harveywhispers]

Some more about Diller:

http://www.businessweek.com/bwdaily/dnflash/mar2003/nf20030320_0711_db039.htm

hw