Bidders for Takeover of QVC

's Fox, Inc. Two months alter, Diller resigned from Fox, and Brian Roberts contacted him about QVC. As they talked, they did so in terms of making QVC a study media company, including purchase of a studio. At the time, MGM was a possibility, unless direct rife is the target.

closeness Media, part-owner of QVC, has John Mal whizz as chief executive. He has often been referred to as the "King of Cable." Malone actually stands to win in one of two ways--his companies own 30 percent of QVC and 22 percent of Turner Broadcasting, so he will represent a pivotal role in any negotiations for Paramount. Malone has gigantic been using his base of 10.5 million cable viewers, roughly one in every five in the U.S., to develop bare-assed programming. In the mid-1980s he helped rescue the Discovery channel and gave informant money to Black Entertainment Television. He has so further stopped short of owning a Hollywood studio but would not be averse to the power it would give him for ontogenesis programming.

Viacom Inc, is a cable company whose operations include the MTV, Nickelodeon, and starting cable networks. It is headed by billionaire Sumner Redstone, the chairman and controlling shareholder. The company has keen-sighted been known as a syndicator of network television shows and and so as a producer of television shows like Matlock and the Perry mason television movies. Sumner Redstone has a 76 percent stake in Viacom and also owns the theater chain National Amusements I

There are a number of intelligent issues and government regulations that will govern how the acquisition of Paramount is courtly by whom,ever is ultimately successful in their bidding. Paramount was counterbalance approached by Viacom and was agreeable to a deal, and the company then wanted a friendly merger with Viacom. However, it has been told by its legal mental faculty that it whitethorn have to put the company on the sell block and that portions of the Paramount-viacom deal aimed at fending off another(prenominal) suitors may be invalid. A court decision in 1986 with quality to Revlon stated that once a company puts itself up for sale, it is induce to open the bidding process to other suitors who might whirl a higher price.

The QVC Network has an operating(a) cash electric authentic of $101.6 million, total debt of $7.5 million, and a current management value of $3.01 billion. Viacom has an operating cash flow of $371/0 million, total debt of $2.4 billion, and a current market value of $6.94 billion. QVC did indeed top the Viacom bid by offering $9.5 billion in stock and cash. Viacom had offered $7.5 billion. Other companies coupled in over the next month or so by offering to join with one or the other bidder as backers. QVC was joined by BellSouth Corporation, which offered to invest $1.5 billion in QVC Network Inc. Any such deal would have to be approved by the FTC. the involvement of Liberty had been a viscid point with federal regulators because the company has links to Tele-Communications, and both Tele-Communications and its Liberty Media spinoff had agreed to be acquired by Bell Atlantic Corp. To annul trouble with the Federal Trade Commission, Liberty agreed to a consent decree calling for it to drop out of the Paramount bid, and if the bid succeeds ultimately to sell off the stake it holds in QVC.

The public has a stake in what happens to paramount, but it is not clear precisely how the public would be affected by either of the two major bidders. Under Diller, there woul
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