Redstone Says Viacom Helped USA Network

Viacom Inc. Chairman Sumner Redstone testified that the company has helped rather than hurt its USA Network partnership with MCA Inc. In a trial over the partnership, Redstone said Viacom helped USA Network land hard-to-get satellite transmission time connected to European ventures and prodded the network to improve its advertising sales, which it did. “We’d have to be fools to do anything to harm USA,” Redstone said, alluding to MCA’s contention that Viacom favors its wholly owned cable channels at the expense of its 50% stake in USA Network. MCA sued Viacom in April, charging that Viacom’s ownership of MTV and Nickelodeon/Nick at Nite, and its recent launch of Nick at Nite TV Land, violates a partnership provision that says partners won’t own cable networks outside of USA. Viacom countersued, saying MCA’s lawsuit is a pretext for forcing Viacom to sell its half of USA to MCA. Separately, MCA parent Seagram Co. said fiscal first-quarter profit rose 92%, reflecting higher revenue from its juice brands and MCA. It reported profit from operations of $127 million, or 34 cents a share, up from net income of $66 million, or 18 cents, a year earlier.