Japanese Banks Lend $2 Billion to Viacom for Paramount Acquisition

Japanese banks have agreed to lend Viacom $2 billion to finance its acquisition of Paramount Communications Inc, a deal worth $6.8 billion. Nine major banks, including Bank of Tokyo, Mitsubishi, and Sanwa, will provide the loan, covering approximately one-third of the total purchase price. The loan was made possible after Viacom won a five-month bidding battle against QVC Inc for Paramount in February. As part of the deal, Viacom will also complete a merger with video retailer Blockbuster Entertainment Corp, announced to fend off the QVC buyout offer.

Key Takeaways:

• Nine major Japanese banks, including Bank of Tokyo, Mitsubishi, and Sanwa, have agreed to lend Viacom $2 billion to finance its acquisition of Paramount Communications Inc.
• The loan will cover approximately one-third of the total purchase price of $6.8 billion.
• Viacom won a five-month bidding battle against QVC Inc for Paramount in February.
• The loan is part of a larger deal that includes Viacom's planned merger with video retailer Blockbuster Entertainment Corp.
• The takeover battle was set off in September when Paramount and Viacom agreed on an $8.2 billion cash and stock merger.

Statistics:

• $2 billion: The amount of loans provided by Japanese banks to Viacom for the Paramount acquisition.
• $6.8 billion: The total purchase price of Paramount Communications Inc.
• $6.6 billion: The cash portion of the final deal, including $6.8 billion in cash and stock.
• $10 billion: The total value of the deal, including the cash and stock merger.
• 5 months: The duration of the bidding battle between Viacom and QVC Inc for Paramount.
• 2 billion: The value of the loan in U.S. dollars.

Sources:

• Associated Press, presented in Tokyo JAPAN -- Associated Press TOKYO.