Published Notes 2016
MTV VALUE 6.2 BILLION
PURCHASERS / AGENTS SINCE 1985:
Billionaire Kraft Foods
New England Patriots
Los Angeles Angles
Billionaire Media Mogul
ANNUAL SALES 3.5 BILLION
NEW YORK, NEW YORK
HISTORY OF MTV:
On this day in 1981, MTV: Music Television goes on the air for the first time ever, with the words (spoken by one of MTV’s creators, John Lack): “Ladies and gentlemen, rock and roll.” The Buggles’ “Video Killed the Radio Star” was the first music video to air on the new cable television channel, which initially was available only to households in parts of New Jersey. MTV went on to revolutionize the music industry and become an influential source of pop culture and entertainment in the United States and other parts of the world, including Europe, Asia and Latin America, which all have MTV-branded channels.
Viacom Inc was an American media conglomerate. Effective December 31, 2005, this corporate ... In 1985, Viacom bought Warner-Amex Satellite Entertainment, which owned MTV and Nickelodeon, renaming the company MTV Networks.
From Wikipedia, the free encyclopedia
Viacom Inc. (short for Visual & Audio Communications) was an American media conglomerate. Effective December 31, 2005, this corporate entity changed its name to CBS Corporation. The present firm also known as Viacom was also established at that date and is a new spin-off company created during the CBS-Viacom split.
Cable television channel
MTV is an American basic cable and satellite television channel which is a part of the "Viacom Music and Entertainment Group" which is the flagship Property of the Viacom Media Networks division of Viacom, of which it is a subsidiary. Wikipedia
Published Notes 1981
Founded: August 1, 1981,
New York City, NY
CEO: Philippe Dauman
Warner Brothers, CEO
Asylum Records Owner
Founders: John Sykes, Tom Freston, Les Garland, Robert Pittman Films: Freedom Writers, Coach Carter, Save the Last Dance, More
Viacom to Buy MTV and Showtime in Deal Worth $667.5 Million
August 27, 1985|MICHAEL A. HILTZIK | Times Staff Writer
NEW YORK — Viacom International, one of the nation's largest distributors of television programming and a large owner of cable-television systems, on Monday agreed to steps that will give it 100% ownership of both MTV, an operator of cable music channels, and Showtime/The Movie Channel, a pay-TV service.
Under a complex arrangement, Viacom will spend more than $667.5 million to purchase the combined 50% interest in Showtime currently held by Warner Communications and Warner-Amex Cable, as well as Warner-Amex's two-thirds stake in MTV and the remaining one-third of MTV held by public shareholders. Viacom already owns 50% of Showtime, which it founded in 1976.
The deal gives Warner enough cash to pay for its planned $450-million buy-out of American Express' share of Warner-Amex Cable without borrowing any money, as well as a healthy premium over the previous offer for MTV. That was a $310-million buy-out bid from Forstmann, Little & Co., a New York firm specializing in leveraged buy-outs. The terms of the Viacom deal indicate that Warner will get $340 million for Warner-Amex's share of MTV.
Could Turn Quick Profit
Warner also will get warrants enabling it to buy up to 10% of Viacom over the next five years at $70 and $75 per share. Analysts view that provision chiefly as a way for Warner to retain an interest in the future growth of MTV and Showtime. If Viacom becomes a takeover target, as some analysts believe it might, Warner could turn a swift profit from its warrants of as much as $50 million.
Viacom shares closed Monday at $50.75, up 25 cents on the New York Stock Exchange. Warner shares closed at $29.75, off 25 cents.
The sale instantly makes Viacom the nation's sixth-largest provider of cable-television programming. MTV, the pioneering provider of music-video programming for cable systems, has about 26 million subscribers. Of MTV's two other networks, VH-1 (for Video Hits-One), a service aimed at the 25- to 54-year-old audience, reaches 8 million households, and Nickelodeon, aimed at children, reaches 25 million. Showtime/The Movie Channel distributes movie and special-production programming and has about 8.5 million subscribers.
The largest cable programming distributor, according to Paul Kagan, a Carmel cable and broadcast industry consultant, is ESPN, mainly a sports programming service, which reaches 35.7 million subscribers.
"From the cable system operator's standpoint, this makes Viacom a much more powerful entity to deal with," said Mara R. Miesnieks, a cable industry analyst for Smith Barney, Harris Upham & Co. Miesnieks and other Wall Street analysts said the potential profits for Viacom more than outweigh the sale price's probable dilution of the company's earnings in 1986 of as much as 40 cents to 50 cents per share.
Premium on Initial Price
Viacom's proposed purchase of the public's one-third interest in MTV for $33.50 per share also represents a sharp premium for many holders of that stock, which was initially offered scarcely a year ago at $14 per share.
Announcement of the Viacom purchase comes two days after the collapse of Warner's negotiations with Forstmann, Little. Those talks reportedly broke down over Warner's desire to retain an option to repurchase about 20% of the rock-music cable programmer. Warner earlier had announced that it had reached an agreement giving it the right for 90 days to sell Viacom Warner-Amex's share of MTV for $310 million.
According to terms of the purchase disclosed Monday, Viacom will pay Warner $500 million in cash and issue to Warner warrants to acquire 1.625 million shares of Viacom at $70 a share. That will cover Warner's 31% stake in Showtime/The Movie Channel, an additional 19% of Showtime/The Movie Channel owned by Warner-Amex and the two-thirds stake in MTV Networks that is owned by Warner-Amex.
Warner also will acquire warrants for $9.75 each to buy another 625,000 shares of Viacom's common stock at $75 per share. All warrants are exercisable over a five-year period and are subject to certain restrictions, the companies said. Exercising all the warrants would give Warner about 10% of Viacom, but, because Viacom is trading at about $50 per share, Warner is not expected to immediately exercise its purchase rights.
Published Notes 2011, 1976
Warner Brothers, CEO
Asylum Records Owner
WB-Eagles Music Rights
Leber Krebs, NY
Jul 13, 2011
Leber Krebs #3
You would have thought that Aerosmith would have learned their collective lessons the first go-round. Nope. For the impressive work Leber and Krebs did over the years in breaking artists like Aerosmith, AC/DC, and Joan Jett, among others, they managed to pillage from their artists by taking all of their publishing. Definition of scumbag or shrewd, depending on how you look at it, but either way, they took a ton of money that was entitled to their artists.
Published Notes - Column 3
by Charles Young
November 15, 1976
THE EAGLES' CONCEPT album, "Desperado," is being made into a Broadway play and-or movie, but the Eagles aren't cooperating. The management firm of Leber-Krebs (AEROSMITH, TED NUGENT) optioned the rights to the material from Warner Bros. Music earlier this year over what Eagles manager IRVING AZOFF said were his "screaming objections. Warner Bros. had purchased the rights from DAVID GEFFEN, Asylum Records' founder. Azoff said that prior to buying the rights to the "Desperado" material, Leber-Krebs approached the Eagles with a proposal. "We totally rejected it," Azoff said. "Aesthetically, we don't think they're the right people to do it," adding that the Eagles would sue Warner Bros. over the material and "related other claims."
STEVE LEBER's comment: "Two years ago, when the Eagles weren't as big, we told Azoff about our concept. He told the Eagles and they were ecstatic. As they got bigger, Irving became less enthusiastic. But we'd love the Eagles to stay involved.