August 29, 1994

What hath Rupert Murdoch wrought? In May, when Fox Broadcasting snatched 12 television stations from CBS, NBC and ABC, industry analysts theorized tirelessly about how Mr. Murdoch's move would affect local television markets and the relationship between networks and their affiliated stations. Such questions are no longer theoretical in this sprawling desert region of 2.2 million viewers. Virtually everything about broadcast television here is about to be turned upside down.

The Garden Sale Viacom agreed to sell its Madison Square Garden sports and entertainment empire to a partnership of Cablevision Systems and ITT, but many analysts said the purchase price of $1.075 billion in cash would far exceed what the Garden properties -- including the New York Knicks, New York Rangers and MSG cable network -- are actually worth. [ Page A1. ]

Viacom Inc. announced yesterday that it had agreed to sell its Madison Square Garden sports and entertainment empire to a partnership of the Cablevision Systems Corporation and the ITT Corporation, but many analysts said the purchase price of $1.075 billion in cash would far exceed the Garden's actual worth. And so it may be months or even years before the long-term winners and losers can be identified in the battle for a package that includes the Madison Square Garden arena, the New York Knicks and New York Rangers, and the MSG Network. The Liberty Media Corporation, the other bidder, dropped out after declining to raise its $1 billion offer.

What convinced Deborah Forde was her scar, the one left by muggers who violently ripped a gold chain from her neck while she was jogging in Prospect Park last year. For Dante Jordan, it was the memory of having his bike stolen at knife-point. Suzann Bassil simply wanted a little independence. She likes to cycle and does not want to wait for her boyfriend to get off work to accompany her.

NEW YORK CITY VIACOM CONFIRMS DEAL FOR GARDEN Viacom Inc. confirmed that it had agreed to sell its Madison Square Garden sports and entertainment empire to a partnership of the Cablevision Systems Corporation and the ITT Corporation for $1.075 billion in cash, a price far exceeding what many analysts say the Garden is worth. The bidding for the package, which includes the Madison Square Garden arena, the New York Knicks and New York Rangers, and the MSG Network, was apparently too rich for the other suitor, Liberty Media Inc. A1.