METROMEDIA INTERNATIONAL GROUP INC
8-K, 1999-08-04
MOTION PICTURE & VIDEO TAPE PRODUCTION
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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

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                                    FORM 8-K
                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934

        Date of Report (Date of earliest event reported): August 4, 1999

                      METROMEDIA INTERNATIONAL GROUP, INC.
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             (Exact name of registrant as specified in its charter)

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<CAPTION>
            DELAWARE                           1-5706                          58-0971455
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<S>                               <C>                               <C>
        (State or other                     (Commission                      (IRS Employer
 jurisdiction of incorporation)             File Number)                  Identification No.)
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<CAPTION>
              ONE MEADOWLANDS PLAZA,
           EAST RUTHERFORD, NEW JERSEY                                  07073-2137
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<S>                                                 <C>
     (Address of principal executive offices)                           (Zip Code)
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Registrant's telephone number, including area code: (201) 531-8000

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ITEM 5. OTHER EVENTS

    On August 4, 1999, Metromedia International Group, Inc. (the "Company")
issued a press release a copy of which is attached hereto as Exhibit 99.1 and is
incorporated herein by reference.

    The press release filed as an exhibit to this report includes "safe harbor"
language, pursuant to the Private Securities Litigation Reform Act of 1995,
indicating that certain statements about the Company's business contained in the
press release are "forward-looking" rather than "historic." The press release
also states that a more thorough discussion of factors affecting the Company's
operating results are included in the Company's Annual Report on Form 10-K and
on Form 10-K/A for the fiscal year ended December 31, 1998, its Quarterly Report
on Form 10-Q for the quarter ended March 31, 1999, and other reports filed by
the Company with the Securities and Exchange Commission.

ITEM 7. EXHIBITS

    (a) Financial Statements of Business Acquired.

        Not applicable.

    (b) Pro Forma Financial Information.

        Not applicable.

    (c) Exhibits.

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EXHIBIT NUMBER                                                DESCRIPTION
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<C>                <S>
99.1.........      Press Release, dated August 4, 1999.
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                                   SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                METROMEDIA INTERNATIONAL GROUP, INC.

Date: August 4, 1999            By:  /s/ SILVIA KESSEL
                                     -----------------------------------------
                                     Silvia Kessel
                                     Executive Vice President, Chief Financial
                                     Officer and Treasurer

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                                 EXHIBIT INDEX

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EXHIBIT NUMBER                                           DESCRIPTION                                          PAGE NO.
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<C>                <S>                                                                                      <C>
99.1.........      Press Release, dated August 4, 1999.
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                                                                    EXHIBIT 99.1

FOR IMMEDIATE RELEASE

          METROMEDIA INTERNATIONAL GROUP'S NINGBO YA MEI JOINT VENTURE
                       RECEIVES NOTICE OF PROJECT STATUS

NEW YORK, August 4, 1999 - Metromedia International Group, Inc. (AMEX:MMG) today
announced that it had received notification from China Unicom stating that a
department of the Chinese government had requested termination of one of its
four joint telecommunications projects. The notification letter from China
Unicom requested that negotiations begin immediately regarding the amounts to be
paid to Metromedia International's joint venture, including return of investment
made and appropriate compensation and other matters related to the winding up of
the joint venture's activities as a result of this notice. Representatives of
Metromedia International have commenced negotiations with representatives of
China Unicom on the amount of the compensation and terms of the resolution of
all issues between the parties and as a result, Metromedia International cannot
currently determine the amount of compensation its joint venture will receive.

While the notification letter involved only the Company's joint venture in the
Ningbo City, Metromedia International expects that the other three
telecommunications projects in which it has invested will receive similar
letters. The Company's Ningbo City project, Ningbo Ya Mei Telecommunications,
Ltd., provides equipment, financing and technical services to China Unicom in
support of its GSM cellular operations in Ningbo City, China.

Stuart Subotnick, Metromedia International Group's President and Chief Executive
Officer stated, "We have been saying for some time that the Chinese government
has been examining the manner in which foreign investors have structured their
investments with China Unicom. With the notification from the Chinese government
on the Ningbo City project, we expect that our other three telecommunications
projects will be wound up in due course. We understand that other companies with
foreign investors involved in telecommunications projects with China Unicom are
receiving similar notification from China Unicom. We are still evaluating other
investment opportunities in communications and electronic commerce in China. As
you know, we recently announced a new China joint venture to develop and operate
an e-commerce system."

Discussion of the terms of the conclusion of the joint venture have just
commenced. The Company cannot yet predict the effect of the Ningbo Ya Mei
negotiations and the expected winding up of the Company's other three
telephony-related joint ventures. Negotiations, if adversely concluded, could
have a materially negative effect on the Company's financial position and
operating results. Depending on the amount of compensation, the Company may have
to record a non-cash charge that will reduce the carrying value of the goodwill
associated with its telecommunications joint ventures in China. The goodwill
balance at June 30, 1999 was approximately $63 million.
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           METROMEDIA INTERNATIONAL GROUP THIRD QUARTER 1997 RESULTS      Page 2

Metromedia International Group, Inc. is a global communications and media
company. Through its wholly owned subsidiary, Metromedia International
Telecommunications, Inc., the Company owns and operates communications and media
businesses in Eastern Europe, the Republics of the former Soviet Union and other
emerging markets. These businesses include wireless and wired cable television
stations; a variety of telephone operations including GSM cellular,
international toll calling, fixed wireless local loop and trunk mobile radio; FM
radio stations; and radio paging operations. Through its approximately 58%
ownership of Metromedia China Corp., MITI operates ventures supporting Public
Switched Telephone Networks and GSM systems in China.

THIS NEWS RELEASE CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS
AND UNCERTAINTIES. FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH RISKS AND
UNCERTAINTIES INCLUDE, BUT ARE NOT LIMITED TO, GENERAL ECONOMIC AND BUSINESS
CONDITIONS, COMPETITION, CHANGES IN TECHNOLOGY AND METHODS OF MARKETING, AND
VARIOUS OTHER FACTORS BEYOND THE COMPANY'S CONTROL. THIS ALSO INCLUDES SUCH
FACTORS AS ARE DESCRIBED FROM TIME TO TIME IN THE SEC REPORTS FILED BY
METROMEDIA INTERNATIONAL GROUP, INC., INCLUDING ITS MOST RECENTLY FILED FROM
10-K AND 10-Q.

Contact:  Ellen Strahs Fader
       Vice President, Investor Relations
       212-606-4389

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