Is Paramount the next to be sold, and would that be good???

[Bob O]

Viacom ready to sell theme parks, Simon & Schuster

Tue Dec 13, 2005 9:49 AM ET

 

By Richard Dean

 

DUBAI (Reuters) - Viacom Inc. is ready to sell theme parks owned by its Paramount Pictures division, as well as book publisher Simon & Schuster, chairman Sumner Redstone said on Tuesday.

 

The U.S. media conglomerate splits into two companies on December 31, separating its faster growing cable networks and film business from the relatively sluggish CBS television broadcasting and radio operations.

 

Simon & Schuster, which will be part of the more mature side of the business has often been cited along with the theme parks as assets Viacom might choose to sell.

 

"We have certain assets which give us a lot of cash flow but don't have the growth potential that we are looking for, like the theme parks and Simon & Schuster," Redstone told Reuters in an interview during a visit to Dubai.

 

"If someone offered us enough money, we would probably sell," he said, declining to give details.

 

Viacom had said earlier it was not actively looking for a buyer for the publishing house. Viacom Co-President Leslie Moonves, who will head the Simon & Schuster side of the business, said in November he liked being in publishing.

 

That was before Paramount Pictures agreed to buy DreamWorks SKG in a $1.6 billion cash-and-debt deal on Sunday giving a big boost to the Viacom studio which has faired poorly in recent years.

 

"Paramount was in a turnaround. Now I believe it will grow double-digit next year. This acquisition (will contribute) immediately both in terms of earnings and cash flow," Redstone said.

 

He said Viacom operations such as children's TV channel Nickelodeon would benefit from Paramount's exclusive rights to populate its TV shows with future characters from DreamWorks Animation, maker of the computer animated hit "Shrek."

 

"ATTRACTING TALENT"

 

The Paramount-Dreamworks deal ended the ambitions of Steven Spielberg, who with other moguls was trying to build an independent movie and television empire.

 

Spielberg, director of movies such as "Schindler's List" and "Saving Private Ryan," will stay on at DreamWorks as producer-director.

 

"Having Spielberg at Paramount will give Paramount more credibility apart from the pictures, and that will help attract talent and so on," Redstone said.

 

He said Viacom would keep expanding its Internet business, and was looking to generate revenues from 3G mobile phones and other portable devices such as MP3 players.

 

"We intend to keep expanding on the Internet. We will be doing all of that. Yes, video on demand. Yes, you will see 24 hour news service from CBS on the Internet," Redstone said, without giving details.

 

Television network CBS said last month it was in talks with Internet media company Google Inc. on video search and on-demand video services.

 

CBS officials have also said they were looking to buy Crown Media Holdings Inc.'s Hallmark Channel and programming library, a network that caters to the older viewers who would fit CBS's demographic.

 

But Redstone declined to comment on Hallmark or other potential targets in the TV business. "The problem is, there is really not much for sale," he said.