Purchase of CBS completed Westinghouse is now biggest broadcaster with $5.4 billion deal

November 25, 1995|By BLOOMBERG BUSINESS NEWS

NEW YORK -- Westinghouse Electric Corp. said yesterday it has completed the $5.4 billion purchase of CBS Inc. to become the nation's biggest broadcaster.

The former industrial company has 211 affiliated television stations that reach 33 percent of U.S. households. It broadcasts its television shows to the U.S.'s six largest markets, including New York, Chicago and Los Angeles.

Westinghouse agreed Aug. 1 to buy CBS, the nation's No. 3 station in prime time behind General Electric Co.'s NBC unit and Capital Cities/ABC.

Under the agreement, each outstanding share of CBS common stock was converted into the right to receive $82.065 in cash. CBS shares were unchanged at $81.875. Westinghouse shares were unchanged at $16.125. The acquisition gained Federal Communications Commission approval Wednesday.

The Pittsburgh-based company's biggest business is now broadcasting with more than $4 billion in revenue. Westinghouse had relied on the manufacture of power-generation equipment, nuclear energy systems and defense electronics for its profits.

Westinghouse will keep the CBS name and logo for its broadcast operations. CBS will merge with Westinghouse's Group broadcasting unit.

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