Deal May Reinvent USA Networks23 Apr, 2002 By: Hive News
USA Networks Inc. will be reborn as USA Interactive following 87 percent shareholder approval of the sale of USA Network's Entertainment Group to Vivendi.
The new unit will be renamed Vivendi Universal Entertainment, but USA Networks said in a press release that when the transaction closes, the company will be renamed USA Interactive and will focus on interactive commerce.
In December, Vivendi agreed to acquire USA Networks' entertainment assets for about $10.3 billion in stock, and then contribute them, along with its own entertainment assets, to create Vivendi Universal Entertainment.
The deal which should be final early next month, will leave Vivendi will have a 93.06 percent stake in Vivendi Universal, while USA Networks will have a 5.44 percent stake.
As announced earlier, USA Networks chairman Barry Diller will be CEO of Vivendi Universal and will hold the remaining 1.5 percent stake.