EXHIBIT 99.1
VIACOM TO SELL SPELLING ENTERTAINMENT
Will Acquire Spelling's Interest In Virgin Interactive Entertainment
New York, N.Y., August 10, 1995 -- Viacom Inc. (AMEX: VIA and VIAB)
announced today that it will sell Spelling Entertainment Group Inc. (NYSE: SP).
Spelling, a TV and film producer, is a 78% owned subsidiary of Viacom acquired
as part of Viacom's purchase of Blockbuster Entertainment in September 1994.
Viacom has retained the investment banking firm of Bear Stearns & Co. Inc.
to identify qualified purchasers and to assist in the evaluation of proposals.
The Company also announced it will acquire Spelling's interest in Virgin
Interactive Entertainment Limited, the preeminent multimedia software unit that
Spelling acquired in the fall of 1994. An independent committee of Spelling's
Board of Directors will be formed to negotiate the terms of the Virgin
transaction.
Sumner M. Redstone, Chairman of the Board of Viacom, said "The sale of
Spelling is another major step in sharpening our focus and follows the
previously consummated sales of Madison Square Garden and our interest in
Lifetime, and the recently announced spin-off of our cable systems. The
substantial net proceeds we anticipate from the sale of Spelling will
essentially complete the process of establishing Viacom as one of the world's
most strongly capitalized global media companies. We will continue to take
advantage of the many growth opportunities of our businesses around the world
while maintaining a very strong balance sheet."
"Spelling is a unique and valuable entertainment franchise with rich
libraries of TV shows and motion pictures and we are reluctant to part with it,"
said Frank J. Biondi, Jr., President and Chief Executive Officer of Viacom.
"However, after evaluating our content-rich asset portfolio and the potential
overlap with our Paramount Television operations, we feel Spelling could provide
even more benefit to others looking to build or enhance their presence in
programming. We are retaining our interest in Virgin Interactive Entertainment
because of the importance of the new and burgeoning multimedia market and its
position as a core asset in our overall strategic vision for that market."
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Spelling Entertainment Group Inc., based in Los Angeles, has long been a
preeminent producer and distributor of TV programming (Melrose Place, Beverly
Hills 90210) and motion pictures. In recent years, Spelling has expanded,
acquiring Republic Entertainment, with its strong home-video distribution and a
library of 7,000 titles.
Virgin Entertainment is one of the world's leading developers, publishers
and distributors of interactive entertainment software, including "The 7th
Guest" and "The Lion King."
Viacom Inc. is one of the world's largest entertainment and publishing
companies and a leading force in nearly every segment of the international media
marketplace. The operations of Viacom include Blockbuster Music, Blockbuster
Video, MTV Networks, Paramount Parks, Paramount Pictures, Paramount Television,
Showtime Networks, Simon & Schuster and Viacom Interactive Media, as well as
cable systems serving 1.2 million customers, radio and television stations, and
movie screens in 11 countries. Viacom also has a substantial interest in
Discovery Zone and a majority interest in Spelling Entertainment Group. National
Amusements, Inc., a closely held corporation which owns and operates almost
1,000 screens in the U.S. and the U.K., is the parent company of Viacom.
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Contact: Carl Folta
212/258-6352
