EXHIBIT 99 (a)
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VIACOM INC. AGREES TO SELL MADISON SQUARE GARDEN
TO ITT/CABLEVISION PARTNERSHIP
New York, New York, August 28, 1994 -- Viacom Inc. (AMEX:
VIA and VIAB) announced today that it has signed a
definitive agreement to sell the operations of its Madison
Square Garden unit to a partnership of ITT Corporation
(NYSE: ITT) and Cablevision Systems Corporation (AMEX:
CVC) for $1.075 billion. Madison Square Garden
principally includes the New York facility, the Garden's
resident professional sports teams -- the Knicks and the
Rangers -- and the MSG regional cable sports network.
Proceeds from the transaction will be used to repay debt.
Viacom originally announced its exploration of the sale of
the operations of Madison Square Garden on May 3, 1994.
The transaction is expected to be completed in the fall of
1994.
Sumner M. Redstone, Chairman of the Board of Viacom Inc.,
said, "The sale of Madison Square Garden is a significant
step in realizing our financial objectives and furthers
our strategic focus as a content-driven enterprise. We
are delighted to be selling Madison Square Garden to ITT
and Cablevision Systems. They understand the value of the
Garden, with its unique combination of assets, and are
committed to realizing its potential for growth."
Frank J. Biondi, Jr., President and Chief Executive
Officer of Viacom Inc., said, "Madison Square Garden is a
premium property and we are pleased we were able to
convert its inherent value into a tangible benefit for our
shareholders while taking a giant step forward in
strengthening our balance sheet."
The investment banking firm of Allen & Company
Incorporated served as advisor to Viacom Inc. on the sale
of Madison Square Garden.
-more-
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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 Paramount Pictures; Paramount
Television; MTV Networks; Showtime Networks Inc.; Simon &
Schuster; Viacom Interactive Media; five regional theme
parks; movie screens in 11 countries; cable systems
serving 1.1 million customers; 12 television stations; and
14 radio stations. Blockbuster Entertainment Corporation
is expected to merge into Viacom Inc. following a vote of
the shareholders of both companies on September 29, 1994.
National Amusements, Inc., a closely held corporation
which owns and operates nearly 850 movie screens in the
U.S. and the U.K., is the parent company of Viacom Inc.
ITT is a diversified, multinational company with 1993
sales of $22.8 billion. The company has operations in 61
countries around the world and 110,000 employees,
including over 3,000 in New York City.
Cablevision Systems Corporation owns and operates cable
television systems in 19 states serving 2.5 million
subscribers of which more than 1.4 million are located in
the New York City tri-state area and through its Rainbow
programming subsidiary owns interests in companies which
produce and distribute American Movie Classics, Bravo,
Romance Classics, eight regional SportsChannels in New
York, Philadelphia, New England, Florida, Ohio, Chicago,
San Francisco, Cincinnati, and Prism -- a sports and movie
service in the Philadelphia area, The Prime Network,
NewSport, News 12, MuchMusic and The Independent Film
Channel, as well as Rainbow Advertising Sales Company, CNI
and Rainbow Network Communications.
# # #
Contact: Viacom Inc.
Carl Folta Nancy Bushkin
212/258-6352 212/258-6362
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