Vivendi Universal has announced it has acquired the entertainment assets of USA Networks for about $10.3 billion in cash and stock in a deal that will boost earnings from 2002.
In a statement, Vivendi said the deal would create a new US movie and television major. It said the acqusition would be paid for with $7 billion in already owned USA stock, $1.65 billion in Vivendi Universal treasury stock to USA networks shareholder Liberty Media and $1.62 billion in cash.
The deal will bring €600 million in extra earnings before interest, tax, depreciation and amortisation in 2002, boost net income by $200 million and free cash flow by more than $350 million in 2002.