Viacom gets Comedy Central for $1.22B

NEW YORK, April 22 (UPI) -- Media giant Viacom Inc. said Tuesday that it is buying fellow media titan AOL Time Warner's remaining stake in Comedy Central for over $1.22 billion.

Viacom currently owns such well-known media brands as CBS, MTV, Nickelodeon, VH1, BET, Paramount Pictures, publisher Simon and Schuster, and video rental behemoth Blockbuster.

Following the completion of the transaction, expected in the second quarter of 2003, Comedy Central will be wholly owned by Viacom and join MTV Networks' lineup of cable channels.

Comedy Central's president, Larry Divney, will remain in that position, and the network will keep its respective headquarters in New York and Los Angeles.

According to Comedy Central, the network reaches 82 million U.S. households, with what the network describes as "an eclectic mix of original programming, stand-up comedy, sketch comedy and movies."

Comedy Central's hits include "South Park," "The Daily Show with Jon Stewart," and "The Man Show."

The transaction also includes Web site comedycentral.com, which features original programs, schedule information, games, downloads and an online store.

Sumner M. Redstone, chairman and chief executive officer of Viacom, explained that expanding the company's interest in cable networks, described as "one of the fastest-growing and most promising areas of the media industry," was an ongoing priority for Viacom.

"Bringing one of the top cable networks brands fully into our family is a significant and important transaction both financially and creatively that will bring significant benefits to Viacom and its shareholders," Redstone said. "Our long and productive partnership with AOL Time Warner ... created a unique network with a loyal audience. We are pleased that we can continue to build on that legacy of success."

Mel Karmazin, president and chief operating officer of Viacom, said, "Comedy Central is a perfect fit with our existing cable networks and strengthens and reinforces our already prominent role with younger demographics that are increasingly attractive to advertisers."

Divney added, "I am confident that this move is, without question, in the best interests of the long-term health, growth and vibrancy of Comedy Central. We couldn't be happier about joining Viacom and becoming part of MTV Networks, the best collection of cable networks ever assembled."