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February 19, 1994|From Times Staff and Wire Reports

Viacom, Blockbuster May Revise Merger Terms: Viacom Inc. and Blockbuster Entertainment Corp. may revise the terms of their merger agreement in the wake of declining stock values of both companies. Wall Street analysts said the value of the Viacom-Blockbuster merger has declined to $5 billion from $8.4 billion when the merger was announced last month, forcing both companies back to the negotiating table. Blockbuster's stock has tumbled nearly 40%. Blockbuster shareholders are expected to pressure Viacom to sweeten its offer, and may possibly recruit TV broadcaster Chris-Craft Industries to buy Blockbuster shares in exchange for some of the merged companies' assets. Blockbuster is part of a three-way merger with Viacom, which just won the five-month-long takeover battle for Paramount Communications.

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