Viacom Bids for Rest of Spelling

Viacom Inc. offered Friday to buy the rest of Spelling Entertainment Group Inc., just months after saying it might sell its majority stake in the producer of “Beverly Hills 90210” and “Melrose Place.”

Viacom--the owner of Paramount Pictures, MTV and Nickelodeon--said it would pay $162 million, or $9 a share, for the 20% of Spelling it doesn’t already own. That’s a 33% premium over the stock’s closing price on Thursday. The offer sent Los Angeles-based Spelling up $2.25 to close at $9 on the New York Stock Exchange.

Viacom Chairman Sumner Redstone had said late last year that Viacom would consider selling its stake in the company run by famed producer Aaron Spelling because it duplicated Paramount’s TV production business.

But Viacom has decided instead to buy all of Spelling and combine some administrative functions with Paramount’s production arm to trim costs, while retaining Spelling’s wealth of past and current hits.

The offer must be approved by Spelling’s independent directors.

Spelling’s current hits include “7th Heaven” and “Charmed” on the WB network and the syndicated “Judge Judy.” “Melrose Place” is ending its seven-year run on Fox this season.

Spelling’s huge library includes some of the most popular shows in TV history, including “Dallas,” “The Love Boat,” “Charlie’s Angels,” “Bonanza” and “Little House on the Prairie.”

New York-based Viacom acquired its 80% stake in Spelling with its purchase of Blockbuster Entertainment in 1994. Viacom later put Spelling up for sale but scrapped the plan in 1996 after failing to receive an adequate offer.