Backed by tycoon Warren Buffett, Capital Cities acquires the much larger ABC network for $3.5 billion, the largest purchase in media history to date. Thomas Murphy becomes chairman and CEO of the new company. General Electric soon trumps that deal with its $6.4 billion merger–with RCA, the parent company of NBC.
Time Inc. ponies up $14.1 billion for Warner Communications, forming the country’s largest media empire. Japan invades Hollywood, as Sony snags Columbia Pictures for $4.8 billion.
Entertainment giant MCA, owner of Geffen Records and Universal Studios, is purchased by Matsushita Electric Industrial Co. for $7.4 billion. Ted Turner, meanwhile, purchases a chunk of Hollywood with Castle Rock Entertainment and, soon after, New Line Cinema. He also buys 200 classic films from Warner Brothers.
Viacom announces an $8.4 billion merger with Blockbuster Entertainment, then outmaneuvers QVC in a $9.6 billion bid for Paramount Communications, whose holdings include a movie studio, Simon & Schuster and the N.Y. Knicks.
Steven Spielberg, record producer David Geffen and ex-Disney movie boss Jeffrey Katzenberg line up financing for their new studio, DreamWorks SKG. Seagram’s Edgar Bronfman Jr. finally achieves his dream of running an entertainment company by purchasing most of MCA from Matsushita for $5.7 billion. Time Warner and Viacom launch two networks, WB and UPN. Finally, in the biggest media deal yet, Walt Disney Co. buys Cap Cities/ABC for $19 billion, and Westinghouse announces plans to acquire CBS.
