Viacom To Sell Local Cable Systems

Media conglomerate Viacom Inc. will sell its local cable television systems to cable TV leader TeleCommunications Inc. in a complex deal designed to take a big hunk out of Viacom’s heavy debt.

The $2.25 billion transaction announced Tuesday allows Viacom to spin off the cable business to its shareholders as a separate company, which would then be bought by TCI.

New York-based Viacom, owner of Showtime, Nickelodeon and MTV cable networks, ran up about $10 billion debt last year buying the movie maker and theme park owner Paramount Communications and Blockbuster Entertainment, the No. 1 video store chain.

It has since been shedding businesses that are tangential to its main business of programming.

If shareholders and regulators approve Tuesday’s deal, Viacom will eliminate $1.7 billion in borrowing.