A $1 Billion Deal, But Little Cheering
Viacom delivered on Chairman Sumner Redstone's brash prediction that it would sell Madison Square Garden for $1 billion. On Aug. 28, it announced that Cablevision Systems and ITT would jointly plunk down $1.08 billion for the famed New York arena, with its sports teams and cable network. On Aug. 31, it sold a TV station to Fox for $200 million. But Viacom's good news was muted by continuing concern over its proposed merger with Blockbuster Entertainment, which some shareholders fear will dilute their holdings. Viacom's Class B stock didn't budge from about 33.