EXHIBIT 99.1
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VIACOM SIGNS AGREEMENT TO SELL
ITS RADIO STATIONS GROUP
Ten Stations in Five Major Markets to be Sold for a Total of
$1.075 Billion in Cash
New York, NY, February 18 -- Viacom Inc. (Amex: VIA and VIAB) announced
today that it has entered into a definitive agreement to sell the Viacom Radio
Group to Evergreen Media Corporation of Los Angeles for a total of $1.075
billion in cash. Simultaneously, Evergreen announced its agreement to merge with
Chancellor Broadcasting Company, with the surviving entity to be named
Chancellor Media Corporation. In connection with the signing of the agreement,
Evergreen and Chancellor will pay a deposit of $107.5 million in cash to Viacom.
The Viacom Radio Group owns and operates 10 stations in five major markets
including FM duopolies (multiple stations in single markets) in New York, Los
Angeles and Washington, D.C. Proceeds from the transaction will be used to repay
debt.
The Viacom Radio Group transaction is subject to normal closing conditions
and receipt of FCC approvals and is expected to be completed this summer.
Interest will accrue on the total price beginning June 16 if the transaction has
not closed by that date. The Viacom Radio transaction is not subject to the
closing of the Evergreen/Chancellor merger.
Sumner M. Redstone, Chairman and Chief Executive Officer of Viacom, said,
"We are extremely pleased with this transaction, which will yield great benefits
both to Viacom and to Evergreen and Chancellor. The sale of our Radio Group is
one more major step in our ongoing efforts to strengthen our balance sheet while
we continue to focus on growing our core business units. Evergreen and
Chancellor are acquiring some of the best-run radio properties in the industry
and in the hands of the newly merged group, these stations will get even
stronger."
Viacom Inc. is one of the world's largest entertainment and publishing
companies and a leading force in nearly every segment of the international media
marketplace. The operations of Viacom include Blockbuster video and music, MTV
Networks, Paramount Parks, Paramount Pictures, Paramount Television, Showtime
Networks, Simon & Schuster, radio and television stations, and movie screens in
11 countries. Viacom also has a majority interest in Spelling Entertainment
Group, as well as a half-interest in Comedy Central, and USA Networks, including
the Sci-Fi Channel. National Amusements, Inc., a closely held corporation which
operates approximately 1,100 screens in the U.S., the U.K. and South America, is
the parent company of Viacom. More information about Viacom is available at the
Company's Web site located at http://www.viacom.com.
Evergreen and Chancellor are two of the nation's leading "pure play" radio
broadcasting companies.
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Contacts:
Carl Folta
212-258-6352
Susan Duffy
212-258-6347