E N E T ® Paramount Communications Inc.–1993 Steven N. Kaplan University Of Chicago A t the end of August 1993‚ Sumner Redstone‚ Chairman of the Board of Directors of Viacom‚ sat back and wondered what to do about Paramount Communications. He had been pursuing the acquisition of Paramount for some time but seemed to have reached a road block. Beginning in 1989‚ Redstone and Martin S. Davis‚ Chairman of the Board and Chief Executive Officer of Paramount‚ had held informal discussions
Premium Cable television Television network Satellite television
Case Study Questions –Paramount Communications Inc. 1993- Why a paramount is a takeover target? Several Strategic Reasons - Cost reduction: through combinations of similar business and economy of scales - Sales increase: a) cross-promotions of each company’s brand and utilization of each company’s channels‚ and b) cooperation in international businesses. 2. Which of the two firms (Viacom or QVC) would make a better fit with Paramount? -Viacom: Overlap in the business creates
Premium Stock market Corporate finance Free cash flow
PARAMOUNT AS A TARGET WHO IS INTERESTED MORE ? BIG DIVERSIFIED MATURED BRANDED 1 BACKGROUND PARAMOUNT COMMUNICATIONS ESTABLISHED PRESENCE: TYPE OF BUSINESS: • Entertainment/Motion Picture production and distribution 1934 Worldwide Gulf & Western previously‚ name changed after acquisition of Paramount Pictures TYPE: HQ: Public NYC‚ New York‚ US • Publishing 2 BACKGROUND VIACOM ESTABLISHED PRESENCE: TYPE OF BUSINESS: • Networks • Cable Television • Entertainment
Premium Warner Bros. Stock market Credit
1. WHY IS PARAMOUNT A TAKEOVER TARGET? Paramount is a potential merger target to Viacom and QVC for a few key reasons outlined below: Paramount & Viacom: (1) Synergy creation: The businesses of both companies are famous and highly complementary to each other. (2) Cost reduction: Paramount & Viacom both have economies of scale and are doing business in a similar industry. (3) Addition of enhanced and complementary distribution capabilities‚ which will significantly increase revenue. (4)
Premium
PARAMOUNT 1994 CASES IN CORPORATE FINANCE July 12‚ 2013 Board of Directors Paramount Re: Acquisition Dear Board of Directors: In order to make our recommendation to the Board‚ we must address the following questions: Acquiring Paramount Communications‚ Inc (PCI) was important for Redstone as it would enable Viacom to obtain a stronger position in the communications industry. His initial offer was designed to show that Viacom was a better strategic
Premium Stock Stock market
Paramount 1994 1.) On December 14‚ Paramount’s board dropped the merger agreement with Viacom and agreed to hold an auction for control of Paramount. The implication of this move was that although Paramount would endorse one of the two bids‚ the shareholders’ tender decisions ultimately would decide the winner. 2) 3.) (Refer Chart “Stock Price Movements” in appendix.) Before the announcement‚ (on September 7)‚ Paramount stock traded at $55.875 per share. From that point‚ Paramount stock reached
Premium Stock Stock market Call option
Blockbuster has managed to become a video-rental giant. But by 1993‚ Blockbuster through its Chairman‚ H. Wayne Huizenga was seeking a new image‚ that of a multimedia company. Steps were taken towards this goal including sponsorships of concert tours‚ music retailing‚ television and film production and operating indoor children’s play centers. These diversification strategies‚ however‚ did not escape from several criticisms and by the fall of 1993‚ Chairman Huizenga had enough reasons to rethink of what
Premium
restructuring of the State’s GBEs‚ while still retaining accountability to the government‚ the State Owned Enterprises Act 1992 (assented to on 26 November 1992) was enacted (Contract-p.27). The government raised more than $22 billion from assets sold in 1993-94 which has turned out to be the nation’s largest privatisation program (revolution-p.137). Assets sold include closure of school sites; the TAB‚ the Heatane Division of the Gas and Fuel Corporation; the Grain Elevators Board; Bass Ticketing and many
Premium Privatization Public ownership
number of apartments -introduced to principals at JPI by mortgage banker‚ Holliday Fenoglio‚ Dockerty‚ and Gibson -Fleet preferred to work directly with developers—but would work with mortgage bankers if developer paid fee (1% of loan) Early 1993‚ Holliday Fenoglio began sending Tom preliminary deal packages—to gauge Fleet interest in financing one of JPI large apartment projects -reviewed proposals including projects that had takeout commitments from General Electric Credit Corporation -because
Premium Loan Debt Mortgage
Central Academy PROJECT REPORT ON Test your knowledge INFORMATIC PRACTICE SESSION : 2013-14 Submitted By: Sana Nagori In Partial Fulfillment Of All India Senior School Certificate Examination Conducted By Central Board Of Secondary Education. (Mrs.Chanda Gehlot) (Ms. Poorvi awasthi) Principal PGT‚ I.P. Acknowledegment I express my administration and convey my sincere thanks to our I.P. teacher MISS Poorvi Awasthi‚ For his
Premium Mohandas Karamchand Gandhi Question Right-wing politics