Chase Manhattan Bank is expected to finance HSN Inc.'s purchase of the television assets of Universal Studios Inc.
The companies announced Monday that HSN would pay Universal $1.2 billion in cash for a majority stake in the television components of its business. However, as part of the payment package, Universal would retain a 45% stake in the company.
Those familiar with the deal, expected to close in early 1998, said that financing terms had not been ironed out, but that a revolving credit facility would probably be finalized in four to six weeks.
HSN Inc. is the parent company of Home Shopping Network, Silver King Broadcasting, and SF Broadcasting. It also owns a controlling interest in Ticketmaster Group Inc.
Based in St. Petersburg, Fla., HSN has a historical relationship with Chase. Universal Studios Inc., based in Montreal, is a subsidiary of Seagram Co.
The assets HSN is gaining from Universal include all domestic operations, 50% of the international operations of USA Network, Sci-Fi Network, and Universal's U.S. television production and distribution operations. Those would be combined with HSN Inc.'s existing assets.
Universal would retain ownership of its television library, its comedy production business, and its international television production and distribution operations.
HSN Inc. would rename itself USA Networks Inc. and would be an equal partner with Universal in a new joint venture.
