Viva to be Swallowed by Viacom

U.S. media giant Viacom looks set to takeover the German Viva Media AG. Sources in London say the takeover of the Cologne-based music television operator, which is worth €300 million ($363 million), would boost Viacom's market position in Europe. If the move goes ahead as planned, the company, which also controls the competitor music station MTV, would then dominate the music television market in Germany. This is likely to prompt music labels and German television stations to appeal to the cartel authorities. Recently, the Saban Capital Group registered an interest in buying Viva. Viva Media AG operates the music channel Viva, which was launched as competitor to MTV in 1993. Since its start, Viva has made it into 32 million households. Time Warner and Vivendi Universal Music hold 31 and 15.3 percent of the company shares respectively.