MTV Agrees to Acquisition by Viacom

MTV Networks will become a wholly owned subsidiary of Viacom International, according to a merger agreement announced by the two companies Thursday. Under the terms of the agreement, Viacom, which already owns about two-thirds of MTV’s common shares, will pay MTV stockholders $33.50 in cash for the remaining 10.2 million shares.

Meanwhile, MTV Chairman Drew Lewis said Robert W. Pittman has been appointed president and chief executive of MTV, succeeding David H. Horowitz, who had held the position for 17 months.

A former radio programmer, Pittman was a founding member of the executive team at Warner Amex Satellite Entertainment, which launched the pioneering 24-hour music video network on cable TV in August, 1981. Since 1983, Pittman has been executive vice president and chief operating officer of MTV.

Horowitz also has been involved with MTV since its birth. After supervising Warner Amex from his position in the office of the president of Warner Communications, he left Warner in 1983 to be chief executive of MTV when it was spun off as an independent firm.

In a telephone interview Thursday, Horowitz declined to discuss the circumstances of his leaving MTV. He described his seven-year involvement with the company as “a terrific business experience for me.” Referring to the rise in MTV’s stock from $15 a share to $33.50 a share under his leadership, Horowitz said: “The value of this company increased from $225 million to $500 million, so we have a lot of very happy shareholders and that makes me feel terrific.”