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USA Network talks go on
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June 12, 1997: 12:51 p.m. ET
Universal Studios Chairman Biondi prefers buying Viacom's stake
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NEW YORK (CNNfn) - Seagram Co.'s Universal Studios and Viacom Inc. still are conducting negotiations over the ownership structure of their joint venture cable channel, USA Network, and Universal Chairman Frank Biondi said he still is open to cooperation but would prefer to buy the network outright.
"We have other partnerships (with Viacom)," Biondi told CNNfn in an interview at the third annual Price Waterhouse media conference. Still, "we prefer to be the buyer."
The remarks came as a Monday deadline quickly approaches in Delaware Chancery Court for both Viacom and Seagram to submit proposals on the ownership structure of USA Networks.
On May 15, Delaware Court Vice Chancellor Myron Steele gave the two media giants 30-days notice to submit a joint proposal and an additional 15 days if they submit separate proposals.
Asked whether the MCA studio would meet the deadline for a joint proposal, Biondi replied "conversations are going on."
He declined to say whether a joint or separate proposals would be submitted, adding he did not want to conduct the negotiations through the press.
Viacom was poised last year to end the 15-year partnership by acquiring Universal Studios' 50-percent interest in USA Network. Seagram in return would have received $1.45 billion and Viacom's 50-percent interest in the Sci-Fi Channel. However, talks broke down over stockholder protest and tax issues.
In turn, Universal expressed interest in Viacom's stake after Seagram sued the media conglomerate over its new Nick at Night TV Land network. Seagram alleged TV Land's launch violated their partnership agreement, which prohibits the two from starting entertainment networks that could compete with USA Network.
Viacom Deputy Chairman Thomas Dooley, who also was present at the conference, wasn't available for comment.
-- Robert Liu
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USA Network
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