Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, September 13, 1993 TAG: 9309150358
SECTION: NATIONAL/INTERNATIONAL PAGE: A-3 EDITION: METRO
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Medium
Paramount Viacom International Inc. would generate more than $6 billion in annual revenue from such businesses as cable and broadcast television, film production, book publishing, theme parks and sports teams.
"This merger is an ideal strategic match between two strong and complementary companies with unlimited opportunity," said Viacom's majority owner, Sumner Redstone, who would be chairman of Paramount Viacom.
Under terms of the deal, the companies said Paramount shareholders would get about $69.14 a share in cash and stock for their holdings.
The deal, a topic of wide speculation for more than a week, was unanimously approved by both boards of directors, the companies said in a statement.
The pact would combine Viacom's huge capacity to distribute programs over its cable TV networks and cable systems with Paramount's considerable experience as a major Hollywood filmmaker and TV program producer.
In addition to MTV, Viacom owns the children's cable network Nickelodeon, the pay-TV channel Showtime and cable TV systems reaching 1.1 million people.
Paramount owns Paramount Pictures, publisher Simon and Schuster, the New York Knicks basketball team and the New York Rangers hockey team.
Martin Davis, chairman and chief executive of Paramount, will be chief executive.
One possible area of expansion could be the formation of a fifth TV network. The new company would own 12 TV stations, a powerful base for a new network.
The deal extends a consolidation trend in the media and entertainment industries, fueled in recent months by the promise of technology that could soon make hundreds of channels and services available through TV sets.
"The global technological revolution in entertainment has only begun," Redstone said.
\ Top 10 Media Companies\ Largest media-entertainment corporations, based on 1992 revenue (in billions)\ \ 1. Time-Warner Inc., U.S., $13.07\ 2. Bertelsmann AG, Germany, $8.41\ 3. Sony Corp., Japan, $7.16\ 4. News Corp. Ltd., Australia, $7.13\ 5. Paramount Viacom, U.S., $6.13\ 6. Capital Cities-ABC Inc., U.S., $5.34\ 7. Matsushita, Japan, $5.24\ 8. Reed Elsevier, Britain, $4.83\ 9. Dun & Bradstreet Corp., U.S., $4.5\ 10. Fujisankei, Japan, $3.86\ - Source: Veronis Suhler & Associates
by CNB