French conglomerate Vivendi Universal said today that it is buying all the entertainment assets of USA Networks for $10.3 billion in cash and shares - marking a major expansion in the vital US market.
The chief executive of USA Networks, Barry Diller, is to become chairman of the new entity.
Vivendi Universal explained that one year after engineering a huge three-way merger of the Canadian drinks and media group Seagram with French pay television company Canal Plus, it was 'addressing our relative distribution weakness in the US'.
A new entity called Vivendi Universal Entertainment, formed through an exchange of securities and involving a cash payment by Vivendi, will unite the Universal Studios Group and USA Networks entertainment assets.
The boards of Vivendi Universal and USA Networks had unanimously approved the operation, the French company said in a statement.
