Arrow Holdings, a company controlled by Barry Diller, has agreed to make an investment in Silver King Communications, a TV station group that owns and operates 12 independent full-power broadcast TV station, as well as an interest in 27 low-power TV stations, all currently affiliates of electronic retailer Home Shopping Network. Mr. Diller, who is paying $22.63 per share for a 20% stake in Silver King, has been named the company's chairman-CEO. Liberty Media has agreed to transfer to Mr. Diller control of the Silver King stock underlying an option it holds for about 70% of Silver King's voting stock upon approval of such arrangements by the Federal Communications Commission and exercise of the option. Liberty, a unit of Tele-Communications Inc., backed Mr. Diller in a similar role at QVC, which he left following its buyout by TCI and Comcast Corp. Mr. Diller is expected to use the Silver King base to build an entertainment and media empire that includes a major broadcast network. The stations reach approximately 28 million TV households, nearly 30% of U.S. TV coverage. Separately, Gerald Hogan resigned as president of HSN, following the election of three new board members: TCI President John Malone, Liberty President Peter Barton and Mr. Diller.
Copyright August 1995, Crain Communications Inc.