Viacom to buy BET?
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October 31, 2000: 9:22 p.m. ET
Media conglomerate Viacom in talks to buy BET Holdings for $3 billion
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NEW YORK (CNNfn) - Viacom Inc. has held talks to acquire BET Holdings Inc., the nation's only cable TV network aimed at African-Americans, for approximately $3 billion, according to published reports.
Viacom, a New York-based media conglomerate, would acquire the parent of the Black Entertainment Television cable TV network that reaches 62.4 million homes directly from its investors, BET chairman Robert Johnson, Liberty Media Group (LMG.A: Research, Estimates) and BET president Debra Lee, according to Web site of industry publication Multichannel News.
The story, attributed to a source familiar with the matter, characterized the discussions as final stage talks.
By contrast, The Wall Street Journal's Web site, citing people familiar with the talks, reported that talks took place within the past several weeks but were not currently on the front burner and it is possible no deal will result.
BET Holdings is the only cable TV network aimed at an African-American audience.
BET owns the Black Entertainment Television cable-TV channel -- which reaches 62.4 million homes -- and three other networks. The company is also an investor in three magazines and has stakes in other properties, including a line of romance novels. A purchase of the network would significantly build up Viacom's cable holdings.
BET said the company's chief investor is Johnson, who owns 63 percent, and Liberty Media, which owns 35 percent.
Viacom currently owns a number of prominent cable-TV networks, including the MTV and VH1 music video channels. The company recently added a country music channel when it purchased CBS. The company also owns publisher Simon & Schuster and an 82 percent stake in Blockbuster (BBI: Research, Estimates). Although it owns the United Paramount Network, which caters shows primarily to African-American and young male audience, it does not have a cable service aimed at that audience.
"We regard the reports that are out there as speculative at best," BET's Vice President of Corporate Communications Michael Lewellen said.
Viacom officials could not be immediately reached for comment.
Separately, it was reported Tuesday that Infinity Broadcasting Corp., the No. 1 U.S. radio station operator, had agreed to accept a revised $12.36 billion all-stock buyout from Viacom.
Shares of Viacom (VIA.B: Research, Estimates) closed the day up $1.31 at $56.88.
--from staff and wire reports
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