USA Will Buy Some Seagram Film Assets

From Bloomberg News

USA Networks Inc., the media company headed by Barry Diller, agreed to buy some of Seagram Co.'s U.S. film assets in a deal valued by sources at $150 million.

Diller has also pursued the purchase of cable channels that could make use of a film library, although sources said USA’s recent $800-million offer for Bravo was rejected by Bravo’s parent, Cablevision Systems Corp.

Wednesday’s agreement calls for USA Networks to buy some of the domestic assets of PolyGram Filmed Entertainment, which Seagram has been trying to sell since it acquired PolyGram in a $10.4-billion deal. The USA transaction does not include PolyGram’s domestic television business or its one-third interest in the Sundance Channel.

In a related transaction, New York-based USA Networks will buy October Films from Seagram and from October’s founders.