Gore TV Deal Is Stalled At The 11th Hour; Major Investor Pulls Out

New York Observer ^ | 4/2/04 | Joe Hagan

[rattrap]

The Observer has learned that the deal for former Vice President Al Gore and his business partner Joel Hyatt to acquire digital-cable channel Newsworld International (NWI) has hit a major obstacle and may have fallen through in the 11th hour of negotiations.

Sources familiar with the situation said that one of Mr. Gore's crucial investors got cold feet in the last stage of the deal and that Mr. Gore's group and the channel's owner, Vivendi Universal Entertainment, could not agree on a price.

Mr. Gore's group was said to be paying around $70 million for Newsworld.

Reached for comment, and asked if the deal had died, Mr. Hyatt initially said, "No," but then added, "No comment. It's always been no comment. We never talked about this deal, never. When we're at liberty to talk, I very much look forward do doing so."

A spokeswoman for Vivendi Universal said, "Things are still in flux, but it hasn't been officially declared over."

Sources close to Mr. Gore told The Observer that the capital raised by Mr. Gore and Mr. Hyatt had come from dozens of investors, with a mix of individual, venture capital and investment banking money. It is not clear which investor pulled out of the deal.

If the deal should fall apart completely, NWI would become part of the Universal Entertainment properties currently being sold to NBC, sources said. It's not clear if NBC would be interested in a digital cable property, especially considering that it already owns news channels MSNBC and CNBC.

It could still be possible, in theory, for NBC to sell Newsworld to Mr. Gore 's group once its own deal is cleared. Spokespersons for NBC could not be reached for comment.

NWI has carriage in about 20 million homes, and packages "foreign newscasts originally broadcast in countries such as Germany, Japan, Canada and the European community," according to its Web site. Mr. Gore's group has had plans of transforming the channel into a 24-hour news, documentary and public-affairs channel geared toward kids in their 20's.

The deal for Mr. Gore and Mr. Hyatt to buy Newsworld International has been nearly a year in the making. It was initially stalled in the fall of 2003 by Vivendi Universal's sale of its cable assets to NBC. Later, Barry Diller, former Newsworld owner and chief executive of InterActive Corp., held up the deal while he resolved his own ownership issues. A source close to Mr. Diller told the Observer that Mr. Diller had cleared the way for Mr. Gore to acquire the company about three weeks ago.

[woofie]

Recount the money!

[torchthemummy]

"Maybe it has something to do with the investor watch frankenfart fall on his fat face on "liberal radio"?"

Right on the money! You don't buy success - you earn it. There are always major up front costs and often the need to lose money for a while. But Rule #1: give the people what they want. Sure many libs would love to have a talk radio counterpunch but the demographics they are trying to get (18-35) are at this very moment playing video games, getting drunk or watching the boob tube. Conservative talk radio succeeded after a long incubation period because it filled a perspective-void. Liberal radio does not because they already have plenty of players in the game. TV, movies, education, heck, apparently the CIA. You can't create demand without a very long marketing strategy that, as I said before, will always run in the red for a long time. Franken, Gore etc. do not have the patience or the deep pockets (they are doing alright but not that good.)

[Paul Atreides]

Algore: always a bridesmaid...

[DefCon]

Cause, its like I always say,
"The world is just eat up with dum asses."

[ozzymandus]

Hasn't Hyatt been up on criminal charges involving real-estate fraud at least once?

[God luvs America]

The investors probably listened to Ignorant Air America the past two days!

[doug from upland]

The guy pulled out just in time. At least Al doesn't have to worry that he might be pregnant.

[ladyinred]

Oh my, you mean a democrat like Gore is messing around with rich people investing in a business venture? Say it isn't so! /sarcasm

[Semper Paratus]

Another sign that the liberal paradigm is dead and it's not coming back.

[Recovering_Democrat]

BWA HA HA HA HA HA HA HA HA HA HA HA HA!!

[Bubba_Leroy]

He probably listened to a couple of hours of Err America and thought, "Who the hell would ever want to watch this on TV?"

[rwfromkansas]

How are his ratings (not good I assume since they only have like 10 stations).

[mabelkitty]

Joel Hyatt, son-in-law to long-time Communist Senator from Ohio, Howard Metzenbaum.

Joel Hyatt, failed candidate for Senator of Ohio who tried to inherit his rich father-in-law's seat.

Joel Hyatt, who got spanked bad by Mike DeWine and had to have John Glenn do television campaign ads for him.

Joel Hyatt, trial lawyer and founder of Hyatt Legal Services.

Joel Hyatt, "You Have My Word On It" moved from Ohio after he lost.

[whereasandsoforth]

I guess the buddhist nuns have closed their tent. Poor Al. His life is a like a bad case of acne. It keeps erupting into ungly sores.

[apackof2]

LOL!

Great gif of Bette Davis

[Socratic]

"Algore: always a bridesmaid..."

So, that's why he's always in those ugly dresses.

[Howlin]

There use to be a female impersonate, Charles Pierce, who "did" he better than she did herself.

He was the one I got the "Pity" remark from. He was fabulous!

[nypokerface]

Maybe FreeRepublic should buy the station and get the real news out. Of course that $60,00 donation figure would have to be raised a bit.

[Redcloak]

I hope that they can sort things out.

I want my wood TV.

[Socratic]

"I want my wood TV."

It appears termites destroyed it before it ever got a chance to leave the rain forest.