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Diller going to the movies?
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January 12, 1999: 8:16 a.m. ET
USA Networks chief reported in talks to buy Universal's October Films unit
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NEW YORK (CNNfn) - Entertainment mogul Barry Diller is looking to get back into the movie business, negotiating with Universal Studios for control of its October Films art-house film unit, according to a published report.
The Los Angeles Times quotes sources close to the transactions as saying Diller also is looking to buy some assets of Universal's PolyGram Filmed Entertainment division.
Diller currently heads USA Networks, which operates the USA Network and Home Shopping Network cable channels. He also has a controlling interest in Ticketmaster and Ticketmaster Online-CitySearch.
The Times says terms of any deal for the film assets couldn't be determined. In fact, sources say the negotiations still could unravel. The paper says Universal, a unit of Seagram, paid $10 million for its 51 percent stake in October Films two years ago, with additional compensation of up to $50 million to be based on the unit's performance.
The paper says PolyGram Filmed Entertainment could be worth up to $400 million, depending on the assets included in a deal. Sources tell the Times that Universal wants to keep the unit's international assets, including 14 satellite distribution offices and the Working Title film label, leaving Diller a small TV production operation.
Adding October Films, the force behind such acclaimed movies as "The Apostle," "Breaking the Waves" and "Secrets and Lies," is seen by some analysts as adding a little luster to the mass-market networks Diller now runs. He is said to see potential for a cable channel that carries highbrow movies, although the Times says it's not clear whether PolyGram's 30 percent stake in The Sundance Channel is part of the negotiations.
Diller is no stranger to moviedom. He achieved fame as the head of Paramount Pictures, and went on to serve as chairman of 20th Century Fox until 1992.
Seagram stock closed Monday at 39-9/16, down ½. 
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