Bidders for Takeover of QVC Network
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In recent years, takeovers and acquisitions have consolidated numerous small companies into larger and larger conglomerates, and Hollywood has become the target of such consolidation moves on more than one occasion. Paramount Pictures is the latest company to become the company of choice for several bidders. the two primary bidders have been the QVC Network headed by Barry Diller, who was once studio chief for Paramount before moving to 20th Century-Fox and then Fox Broadcasting, and Viacom, headed by Sumner Redstone. There are other companies looking at Paramount as an acquisition as well, notably Ted Turner's Turner Broadcasting. Acquisition of Paramount by any of these bidders would signal a change in the competitive environment. QVC Network is a company that has been noted for its direct sales over television, the so-called shopping channel approach, and more recently under Barry Diller the company has been delving into the future of interactive television on several levels. Brian Roberts is the Chairman of the network. He is also president of Philadelphia-based Comcast Corp., the nation's fourth-largest operator of cable-TV systems, with more than two million subscribers. Comcast and Liberty Media along with Barry Diller joined together to take control of QVC. QVC was created by Roberts and his father in 1985 with seed money for start-up, and the two persuaded other cable operators to carry the channel in return for a stake in it. The Roberts first met Diller
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l aimed at fending off other suitors may be invalid. A court decision in 1986 with reference to Revlon stated that once a company puts itself up for sale, it is obligated to open the bidding process to other suitors who might offer a higher price.
The QVC Network has an operating cash flow 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 joined 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 sticking 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 avoid trouble with the Federal Trade Commission, Liberty agreed to a consent decree calling for it to drop o
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Some common words found in the essay are:
Sumner Redstone, QVC Network, Macmillan Prentice-Hall, Redstone Paramount, Street Journal, Jr Viacom, Supreme Court, QVC QVC, Commission Liberty, Martin Davis, wall street journal, street journal, wall street, sumner redstone, qvc network, november 1993, 1993 b1, october 1993, liberty media, barry diller, 4 october 1993, john malone, november 1993 a3, week 4 october, business week 4,
Approximate Word count = 1595
Approximate Pages = 6 (250 words per page)
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