Media Industry
Industry: Email Alert RSS FeedLiberty faces snag: Discovery stake could prove obstacle to Vivendi deal. (Top of the Week).(Brief Article)
Broadcasting & Cable, August, 2002 by Higgins, John
Liberty Media's proposal to combine some of its media assets with those of ailing Vivendi could meet resistance from Discovery Communications. Liberty owns 49% of the Discovery; the other owners, including Cox Communications and Newhouse, have rights to block such a transfer of ownership.
Liberty is proposing to get a stake in Vivendi's Universal Studios, Universal Music Group, USA Network in exchange for Liberty's wholly owned Starz and Encore paymovie networks and interest in Discovery. Vivendi's new CEO, Jean-Rene Fourtou, told employees last week that the entertainment units aren't part of the billions in assets he has committed to sell within the next two years. Liberty has a long relationship with Barry Diller, who is at the center...
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