Westinghouse Electric Corp. is planning to make a bid to buy
CBS from Chair Laurence Tisch, according to multiple reports this
morning. Yesterday, CBS' stock jumped 4 1/8 after CNBC financial
analyst Dan Dorfman reported that Westinghouse was preparing a
bid for $83 a share. Tisch, who has publicly maintained that the
net is not for sale, has been said to holding out for at least
$80 a share. The N.Y. TIMES, which reports that the deal would
be for about $5.8B in cash, adds that the deal "has its logic"
(Geraldine Fabrikant, N.Y. TIMES, 7/18). The WALL STREET JOURNAL
cautions that "talks could continue for a long time," and that
the offer could be used by Tisch to "start an auction." Merging
CBS and Westinghouse, however, would create the largest TV
station group in the U.S., covering 32% of TV homes
(Jensen/Narisetti, WALL STREET JOURNAL, 7/18). USA TODAY lists
the positives and negatives, noting that four of Group W's
stations are CBS affils. However, Barry Diller, another long-
rumored CBS suitor, "is said to be telling friends that a deal
with Group W would set CBS back 10 years" (David Lieberman, USA
TODAY, 7/18).
LABATT BROADCAST ARM FINALLY SOLD: Belgian Brewer Intrebrew
S.A. confirmed the sale of Labatt Communications Inc. (LCI) to a
consortium led by LCI management for about C$605M, according to
this morning's FINANCIAL POST. LCI's assets include TSN -- The
Sports Network, 80% of the Discovery Channel, 25% of Viewer's
Choice pay-per-view, Dome Productions, the Rep Shoppe, an ad
sales agency, 35% in NTN Canada, an interactive TV company, and
RDS, the French-language sports channel. Investors in the LCI
group include Stephen Bronfman (28.6%), pension fund manager
Caisse de depot and placement du Quebec (28.6%), Reitman's Ltd.
(21%), and ABC/Cap Cities' ESPN (20%). The path is now clear for
finalization of Labatt's sale to Intrebrew, with other non-
brewery assets, the Blue Jays, Argonauts and 42% of SkyDome also
likely to be sold (Paul Brent, FINANCIAL POST, 7/18). FOX
AFFILS NOT SOLD ON BASEBALL: Fox will have a "hard sell" to get
affiliates to buy into the concept of Saturday afternoon
baseball, according to BROADCASTING & CABLE. Fox affils
contacted by B&C said that Saturday games "would fly in the face
of Fox's 'less-is-more' philosophy, which touts fewer hours of
network programming so that stations can take full advantage of
local and syndication programming and sales opportunities."
Affiliate execs in twelve markets said they all experienced
revenue losses from Fox's Sunday afternoon NHL coverage (Steve
McClellan, B&C, 7/17 issue).
