Under terms of the deal, News Corp. will be paid $800 million in cash and receive stock in United Video worth an estimated $1.2 billion. News Corp. will own approximately 40% of the new and larger United Video; Mr. Malone's TCI Ventures Group and Liberty Media Corp. will own approximately 44%; and public shareholders will own the remaining 16%. But News Corp. and TCI Ventures/Liberty media will each control about 48% of the voting power in the new company.
Existing managements remain in place pending future decisions about executive arrangements. David Steward is president-CEO of TV Guide. Peter C. Boylan III is president-chief operating officer of United Video.
News Corp. acquired TV Guide along with Daily Racing Form and Seventeen from Walter Annenberg in 1988 for $3 billion, a sum Mr. Murdoch later admitted was too high.
Copyright June 1998, Crain Communications Inc.