US TV
Viacom buys AOL stake in Comedy Central
Published Wednesday, Apr 23 2003, 00:23 BST | By James Welsh
Viacom is acquiring AOL Time Warner's 50% stake in the Comedy Central cable channel, with the price tag set at $1.225bn.
Completion of the transaction, which is expected to happen in the second quarter of this year following "appropriate regulatory reviews," will result in Comedy Central being wholly-owned by Viacom. The channel will be moved into Viacom's MTV Networks stable of basic cable channels.
The move comes as AOL looks to sell some assets in a bid to cut its debt load; the deal was itself announced on the eve of the unveiling of AOL Time Warner's first quarter earnings report.
Dick Parsons, AOL-TW CEO and Chairman-elect, said: "This transaction, as well as the sale of our investment in GM Hughes earlier this year, demonstrates our commitment to the Company's previously announced debt reduction goals. Our expected strong Free Cash Flow generation and favorable prospects for future sales of other non-strategic assets give us confidence that we can and will achieve our debt reduction targets. We are very pleased to have reached this amicable agreement with Viacom, who have been great partners at Comedy Central."
Larry Divney, who will continue in his post as President of the channel, said: "'I am confident that this move is, without question, in the best interests of the long-term health, growth and vibrancy of Comedy Central. We couldn't be happier about joining Viacom and becoming part of MTV Networks, the best collection of cable networks ever assembled."
Completion of the transaction, which is expected to happen in the second quarter of this year following "appropriate regulatory reviews," will result in Comedy Central being wholly-owned by Viacom. The channel will be moved into Viacom's MTV Networks stable of basic cable channels.
The move comes as AOL looks to sell some assets in a bid to cut its debt load; the deal was itself announced on the eve of the unveiling of AOL Time Warner's first quarter earnings report.
Dick Parsons, AOL-TW CEO and Chairman-elect, said: "This transaction, as well as the sale of our investment in GM Hughes earlier this year, demonstrates our commitment to the Company's previously announced debt reduction goals. Our expected strong Free Cash Flow generation and favorable prospects for future sales of other non-strategic assets give us confidence that we can and will achieve our debt reduction targets. We are very pleased to have reached this amicable agreement with Viacom, who have been great partners at Comedy Central."
Larry Divney, who will continue in his post as President of the channel, said: "'I am confident that this move is, without question, in the best interests of the long-term health, growth and vibrancy of Comedy Central. We couldn't be happier about joining Viacom and becoming part of MTV Networks, the best collection of cable networks ever assembled."
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