Vivendi buys USA Networks for $10bn

PARIS, France (Reuters) -- Vivendi Universal said on Monday it had acquired the entertainment assets of USA Networks for about $10.3 billion (€11.4 billion) in cash and stock in a deal that will boost earnings from 2002.

In a statement Vivendi said the deal would create a new U.S. movie and television major, and would be paid for with $7 billion in already owned USA stock, with $1.65 billion in Vivendi Universal treasury stock to USA networks shareholder Liberty Media, and by $1.62 billion in cash.

The deal will bring €600 million in additional earnings before interest, tax, depreciation and amortization (EBITDA) in 2002, and will boost net income by $200 million, and free cash flow by more than $350 million in 2002.

Reuters contributed to this report.