USA Suit Says WWF to Accept CBS-Viacom Bid

World Wrestling Federation Entertainment notified USA Networks Inc. a week ago Monday that it intended to accept an offer from Viacom and CBS for the rights to distribute wrestling matches through at least 2006, according to a lawsuit filed Wednesday by USA against WWF, CBS and Viacom.

In the lawsuit, filed in Delaware Chancery Court and obtained Thursday by The Times, USA Networks stated that, without injunctive relief from the court, it will lose rights to its highest-rated programming, supplied by WWF.

Under a contract with the WWF that expires in September, USA can keep the four popular wrestling series by matching any rival bid. The company announced Wednesday that it had matched the cable component of CBS-Viacom’s bid and had filed a lawsuit asking the court to affirm its rights to the programming, which has kept USA as the nation’s top-ranked channel.

The company says it is not obligated to match other incentives provided under the CBS-Viacom bid. CBS-Viacom wants to use wrestling to expand the popularity of its TNN cable channel and plans to air games of WWF’s new football league, XFL, on UPN, which also would expand from one wrestling series to two. The company’s offer also would give the WWF access to publishing, radio, movie and theme park assets.

USA, which is controlled by Barry Diller, lacks the resources in broadcasting, publishing and theme parks to match the CBS-Viacom offer.

Without the four wrestling series supplied by WWF, USA would fall from the lead and probably would earn lower rates from advertisers. Its stock fell nearly 9% on Nasdaq, to $19.06 a share.