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CBS to acquire King World
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April 1, 1999: 8:43 a.m. ET
Network paying $2.5B for syndicator of 'Jeopardy!', 'Oprah Winfrey Show'
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NEW YORK (CNNfn) - CBS has agreed to acquire King World Productions, the television syndication giant, in a $2.5 billion deal.
Under terms announced Thursday, King World (KWP) shareholders will receive 0.81 share of CBS (CBS) stock for each King World share..
For New-York-based CBS, the deal allows it to expand syndication with King World's top-rated shows like "Jeopardy!" and "The Oprah Winfrey Show." The acquisition is viewed by analysts as a logical fit for CBS to expand beyond its traditional business of network programming . CBS and its affiliated stations already buy a range of programs from Los Angeles-based King World.
Winfrey, a major King World shareholder, reportedly was enlisted to help iron out differences over the future role of the company's two top executives, brothers Michael and Richard King.
The companies Thursday said the brothers will report to Leslie Moonves, president and chief executive officer of CBS television.
King World is debt-free, and CBS said the acquisition is expected to immediately accretive to its balance sheet.
The deal, already approved by both companies' boards, is expected to close by mid-year upon approval of King World shareholders.
Members of the King family holding approximately 18 percent of the King World voting shares have agreed to vote for the merger, the companies said.
King World stock climbed 1/2 to 30-9/16 Wednesday, while CBS shares dipped 3/16 to 40-13/16. Both stocks are just off their all-time highs. 
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CBS
King World
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