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Saban may sell Fox Family
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December 11, 2000: 5:35 a.m. ET
Report: Option to sell could force News Corp. to shell out $2B by year-end
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LONDON (CNNfn) - Rupert Murdoch's News Corp. the world's fifth-largest media company, could be forced to acquire Saban Entertainment Inc.'s half share in Fox Family Worldwide Inc. for at least $2 billion, according to a published report Monday.
The Wall Street Journal said Haim Saban, the chairman and CEO of Fox Family, whose successes include "Mighty Morphin Power Rangers", plans to exercise a "put" option by Dec. 31, whereby News Corp (NWS: Research, Estimates) would have to buy the Saban stake for cash.
Saban values Fox Family Worldwide, in which Saban and News Corp. each own 49.5 percent, at about $6 billion, including $2 billion of debt and preferred stock.
Any acquisition could hamper Murdoch's desire to buy Hughes Electronics Corp. (GMH: Research, Estimates), which is owned by General Motors Corp. (GM: Research, Estimates), and is expected to cost about $40 billion in cash and stock.
Saban could be persuaded to extend his option because he values his relationship with Murdoch, a person familiar with the matter told the WSJ. The option was extended by six months earlier this year.
The Fox Family Channel has 78.6 million subscribers, but the joint venture has endured difficult times. Viacom Inc. (VIA: Research, Estimates) recently paid $3 billion to buy Black Entertainment Television, which has far fewer subscribers.
The Fox Family Channel also owns Saban Entertainment Library, a library of children's programs, and a 76 percent stake in Fox Kids Europe, a publicly traded concern. 
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