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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: September 23, 1997
THE SEAGRAM COMPANY LTD.
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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Canada 1-2275 None
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(STATE OR OTHER JURISDICTION (COMMISSION (IRS EMPLOYER
OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.)
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1430 Peel Street, Montreal, Quebec, Canada H3A 1S9
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
Registrant's telephone number, including area code:
(514) 849-5271
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Item 5. Other Events.
On September 22, 1997, The Seagram Company Ltd. (the
"Corporation") and Viacom Inc. ("Viacom") announced that they
have agreed to resolve all litigation regarding jointly-owned
USA Networks. Under terms of the agreement, the Corporation
will acquire Viacom's 50% interest in USA Networks, including
Sci-Fi Channel, for $1.7 billion in cash. The transaction,
which is expected to close in the fourth quarter, is subject
to customary conditions.
A copy of the press release is attached hereto as an exhibit
and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
(99) Press Release.
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SIGNATURE
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 thereunto duly authorized.
THE SEAGRAM COMPANY LTD.
(Registrant)
Date: September 23, 1997
By: /s/ Daniel R. Paladino
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Daniel R. Paladino
Executive Vice President -- Legal and
Environmental Affairs
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EXHIBIT INDEX
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Exhibit Description of Exhibit Sequentially
Number ---------------------- Numbered Page
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(99) Press Release. 6
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EXHIBIT 99
5
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IMMEDIATELY
Ray Boyce
212/572-7172
Amy Goldberger
212/572-1118
SEAGRAM AND VIACOM REACH AGREEMENT TO SETTLE LITIGATION
REGARDING USA NETWORKS JOINT VENTURE
SEAGRAM TO PURCHASE VIACOM'S 50% INTEREST IN USA NETWORKS FOR $1.7 BILLION
MONTREAL, September 22, 1997 - The Seagram Company Ltd. (NYSE: VO) and Viacom
Inc. (AMEX: VIA and VIAB) announced today that they have agreed to resolve all
litigation regarding jointly-owned USA Networks. Under terms of the agreement,
Seagram will acquire Viacom's 50% interest in USA Networks, including Sci-Fi
Channel, for $1.7 billion in cash. The transaction, which is expected to close
in the fourth quarter, is subject to customary conditions.
Edgar Bronfman, Jr., Seagram's president and chief executive officer, stated:
"Universal now has the opportunity to manage a scarce and unique asset in the
fast-growing cable network business. USA Networks complements our existing
entertainment operations and provides a strong platform for future growth, both
domestically and internationally. And, with the lawsuit behind us, Universal and
Viacom can now focus on further strengthening the many relationships which exist
between us across the entertainment world."
Sumner M. Redstone, chairman and chief executive officer of Viacom, said, "The
sale of USA Networks is another significant step in our continuing commitment to
reduce Viacom's debt. We are pleased that we were able to amicably settle our
differences with Seagram and we look forward to resuming a productive
relationship."
USA Networks owns and operates these advertiser-supported services: USA Network,
a general entertainment channel, which has a 98% penetration of U.S. cable and
direct-to-home households, with 73 million subscribers; and Sci-Fi Channel,
which has a 63% penetration of U.S. cable and direct-to-home households, with 46
million subscribers. USA Networks also owns and operates USA Networks
International, with channels in South America, Europe and Africa.
The Seagram Company Ltd. operates in two global business segments: beverages and
entertainment. The beverage businesses are engaged principally in the production
and marketing of distilled spirits, wines, fruit juices, coolers, beers and
mixers throughout more than 150 countries and territories. The entertainment
company, Universal Studios, Inc., produces and distributes motion picture,
television and home video products, and recorded music; and operates theme parks
and retail stores. Headquartered in Montreal, Seagram employs 30,000 people
worldwide.
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