PolyGram Video Sold To USA Networks

The Seagram Company has finalized a deal to sell the bulk of the domestic assets of PolyGram Filmed Entertainment, including the video division and specialty-film distributor Gramercy Pictures, to USA Networks, a leading cable network. The move was a surprise as insiders expected PolyGram Video to be absorbed by Universal Studios Home Video. Seagram, which owns Universal Studios, acquired PolyGram Holdings and its Filmed Entertainment division in December for $10.4 billion.The combined entity will operate as USA Films, with PolyGram Video renamed USA Home Entertainment. The deal is estimated to be worth as much as $300 million. Bill Sondheim, President of PolyGram Video said, ""PolyGram Video is thrilled to be a part of this dynamic, emerging new entertainment company. We look forward to making additional announcements in the near future with more detailed information about this home video company and its operating structure.""Barry Diller, who heads USA Networks reportedly sees the deal as a way for his company to broaden its business interests to include theatrical-production units that will add to the programming available for its cable businesses.