Viacom to buy BET for $2.5 bn

Viacom to buy BET for $2.5 bn
REUTERS

NEW YORK, NOV 3: Media giant Viacom Inc said on Friday it agreed to acquire privately held BET Holdings Inc, the largest media and entertainment company geared to an African-American audience, for $2.5 million in stock, giving Viacom entry to one of the fastest-growing US media markets.

The deal, which earlier in the week had been reported to be in the works, brings New York-based Viacom a cable television network that reaches more than 62 million US households, complementing its own UPN network, which has also been taking steps to develop a broader following among African Americans.

BET chairman and co-founder Robert Johnson will remain chairman and chief executive of the network, reporting to Karmazin, the companies said. Debra Lee, BET's president and chief operating officer, will also retain her posts.

The transaction, which is expected to close early next year, includes Black Entertainment Television, The Cable Jazz Channel, BET International, BET Books and BET Holdings' interest in Web portal BET.com, the companies said. BET will remain headquartered in Washington, they added.

In 1991 BET Holdings became the first African-American-owned company to be publicly traded. The company went private seven years later in a buy-out led by Johnson and Liberty Media Group, headed by cable TV mogul John Malone. Liberty now is an arm of AT&T Corp, the largest US cable operator.

The final exchange ratio for the stock transaction will bebased on the trading prices of Viacom Class B common stock during a measurement period immediately before the closing of the deal, the companies said in a joint statement. The deal also calls for Viacom to assume about $500 million in BET debt, bringing the deal's total value in stock and debt to $3 billion.

Viacom earlier this week set plans to buy the remaining interest in radio broadcaster Infinity Broadcasting Corp for $12.5 billion. The company's class A shares closed Thursday at $58-15/16, while its class B shares closed at $58-1/2.