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Chris-Craft in new merger talks
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August 11, 2000: 6:25 p.m. ET
Viacom ends negotiations; Chris-Craft launches merger talks with another
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NEW YORK (CNNfn) - Television station operator Chris-Craft Industries Inc. said Friday it is in merger talks with an unnamed media company, after Viacom Inc. said it had ended its acquisition talks with Chris-Craft.
Chris-Craft said it and its subsidiaries, BHC Communications Inc. and United Television Inc., were in talks with "another major media company" about a possible merger. Chris-Craft did not name the other company.
A spokesman could not be reached for comment Friday night on a broadcast report that News Corp. had made an $85 a share offer for the company.
Spokespersons for ABC network's owner Walt Disney Co., and Barry Diller's USA Networks said they were unaware of any discussions with Chris-Craft. Diller has been vocal about finding a merger partner in the past.
Late Friday afternoon, Viacom said it had ended discussions with Chris-Craft, which in addition to owning television stations in 10 major markets through its BHC subsidiary, also makes plastic film products such as water-soluble laundry bags, mainly for the chemical and health-care industries.
Viacom spokeswoman Karen Zatorski declined to elaborate on the one-sentence statement from the company Friday.
Published reports in June had valued a television station deal between Viacom and Chris-Craft, which had shared ownership of the emerging UPN network, at $3.5 billion.
The talks, which have been on and off for more than a year, had previously broken down over price and a legal battle over the now-defunct partnership between the two companies in the UPN Network, in which the companies had a 50-50 ownership interest.
New York-based Chris-Craft (CCN: Research, Estimates), was forced to sell its 50 percent stake in UPN to Viacom in May for $5 million.
 In June, Viacom (VIA: Research, Estimates), which owns MTV and Paramount Studios reportedly re-started talks with Chris-Craft about acquiring its television station group, which operates 10 TV stations in major U.S. markets.
Viacom's recent acquisition of CBS gave it a total of 42 percent of the American viewing audience: A figure that includes its ownership in UPN and other TV station holdings. Networks are legally permitted to reach only 35 percent of the national audience.
In order for Viacom to buy Chris-Craft, it would likely be required to divest some stations to comply with regulations.
 However, the Federal Communications Commission is considering a new rule allowing companies to own more than one television broadcast network, which may allow Viacom to keep both CBS and UPN.
Shares of Viacom closed up 1-1/2 to 71-15/16 Friday.
Chris-Craft shares dipped 8 to close at 62. 
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