Viacom, Seagram deal in works

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Viacom and Seagram Co. are hoping to return to a Delaware Chancery Court on Thursday to announce a settlement in their breach-of-contract countersuits. Hearings on the countersuits have been temporarily postponed.

Although the companies continue to negotiate, sources say Viacom is expected to pay Seagram's MCA unit upward of $1.5 billion for its 50% interest in USA Network, which would make Viacom the sole owner of the cable service. In turn, Viacom will give up its 50% interest in the Sci-Fi Channel, valued at about $250 million, making MCA the sole owner of that cable service.

The total value of the settlement could exceed $1.7 billion when both sides finally settle on values and other considerations.

Copyright October 1996, Crain Communications Inc.

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