Wizened media mogul Sumner Redstone will not sell all the movie theatres his daughter Shari controls in order to ease his family’s $1.6 billion debt problems, but he’s going to move some in order avoid selling more of his controlling stakes in Viacom and CBS, according to FT:
If lenders agree, the plan would clear the way to sell a part of the US group and 19 theatres in the UK. National Amusements, which also houses Mr Redstone’s controlling stakes in Viacom and CBS, owns theatres in Latin America and Russia. The company is expected to hold on to theatres in the New England area, where National Amusements is based and which account for about half of the US-group’s value.
It was not immediately clear how much the proposed partial sale would fetch. The entire chain is valued at $500m to $700m by analysts and at about $1bn by Mr Redstone.
On Monday, Sumner announced his holding company, National Amusements, would sell its entire stake in video game maker Midway and take a $800 million tax loss.