Viacom Reports Exchange Offer Oversubscribed6 Oct, 2004 By: Holly J. Wagner
Viacom Inc.'s exchange offer supporting the Blockbuster Video splitoff was oversubscribed, the company reported today.
The media giant, which owns 81.5 percent of Blockbuster, reported that 295 million Viacom shares were tendered for exchange in the offer that expired Tuesday night.
Viacom will accept nearly 28 million shares of Viacom stock in exchange for the 144 million shares of Blockbuster stock Viacom owns.
Because the deal was oversubscribed, Viacom will accept only about 9.5 percent of shares tendered. The company expects to announce final results by Oct. 13.
Completion of the exchange offer takes the companies a step closer to the planned separation that will leave Blockbuster a stand-alone company.