graphic
News > Deals
Universal sheds TV unit
October 20, 1997: 10:41 a.m. ET

Parent of Home Shopping Network to acquire stations for $4.075 billion
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - Universal Studios Inc., a subsidiary of Seagram Co. Ltd., said Monday it is merging its television assets with those of HSN Inc., the parent of television's Home Shopping Network, in a stock deal valued at $4.075 billion.
     Universal will receive 45 percent of HSN's outstanding common shares plus $1.2 billion in cash.
     Once the deal is complete, HSN Inc. will change its corporate name to USA Networks Inc. Barry Diller will continue as its chairman and chief executive officer.
     "This merger provides an extraordinary opportunity for Universal to further enhance the value of its television assets, including our cable networks, under Barry Diller's leadership," said Edgar Bronfman Jr., Seagram's president and chief executive officer.
     HSN will receive all of the domestic operations and 50 percent of the international operations of USA Network, the Sci-Fi Channel and Universal Television's U.S. production and distribution operations. Those assets will be combined with HSN's Home Shopping Network and its interest in Ticketmaster Group Inc.
     Universal will retain ownership of its television library, comedy production business and international television production and distribution operations. HSN and Universal each will own 50 percent of a newly-created international television joint venture.
     In accordance with Federal Communications Commission rules, Universal Studios' 45 percent interest in HSN will be held in a subsidiary that will also include HSN's non-broadcast assets. That interest will be exchangeable into an equivalent percentage of HSN shares.
     Universal also agreed not to increase its equity above 45 percent for a four-year period, although there are unspecified exceptions to that provision.
     Once the deal is complete, Liberty Media will own 15 percent of the company and could increase its stake to 25 percent.Back to top
     --Cyrus Afzali

  RELATED STORIES

Silver King, HSN to merge - Aug. 26, 1996

MCA wins USA Networks - Sept. 22, 1997

  RELATED SITES

USA Networks


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.