Barry Diller, former Chair of QVC, is seeking financing for
a possible bid for CBS Inc., according to execs and investment
bankers familiar with the situation. According to those sources,
Diller has had meetings with CBS Chair Laurence Tisch and
potential financial backers in New York over the past week. The
sources also said that Disney Chair Michael Eisner, who had
tabled negotiations with Tisch after being unable to agree on a
price, has "not re-entered active negotiations." The bankers
also "dismissed reports that Eisner and Diller might join forces
in an offer for CBS, noting that both men would want to control
the network." Eisner worked for Diller at Paramount when Diller
was the studio head there (BLOOMBERG BUSINESS NEWS/SAN JOSE
MERCURY NEWS, 3/15). The Disney-Diller speculation came from a
HOLLYWOOD REPORTER story that quoted unnamed sources as saying
Disney is talking with CBS about a possible acquisition, and that
thiose talks include Diller (REUTERS/ DAILY VARIETY, 3/15). CBS
stock gained 3/4 to close at 67 3/4 on the speculation of Disney
and Diller acquiring the network (SAN FRANCISCO CHRONICLE, 3/15).
TURNER/TIME WARNER: The latest round of talks on Time
Warner selling back its 19.4% stake in Turner Broadcasting for
close to $1.5B ended yesterday without agreement, according to
this morning's WALL STREET JOURNAL. But, "people on both sides
said they still hope to reach a deal." If TBS can complete the
agreement with Time Warner, Ted Turner, with the backing of TCI,
is expected to make a bid for CBS in excess of $5B. TCI, which
owns 20% of TBS, would provide financing for TBS' repurchase of
Time Warner's stake, effectively giving TCI close to 40% of
Turner equity (Shapiro & Lippman, WALL STREET JOURNAL, 3/15).
