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BLOCKBUSTER TO ACQUIRE SPELLING ENTERTAINMENT SHARES

 FORT LAUDERDALE, Fla., March 8 /PRNewswire/ -- Blockbuster Entertainment Corp. (NYSE: BV) today announced that the company will acquire approximately 24.5 million shares of common stock of Spelling Entertainment Group Inc. (NYSE: SP) which are beneficially owned by American Financial Corp. The shares to be acquired by Blockbuster represent approximately 48.2 percent of Spelling Entertainment's outstanding common stock.
 In exchange for the Spelling Entertainment shares to be acquired, Blockbuster will issue approximately 7.6 million shares of its common stock to American Financial. In addition, the company will issue to American Financial warrants to acquire an aggregate of two million shares of Blockbuster common stock at an exercise price of $25 per share. The warrants will expire at the earlier of the third anniversary of the closing of these transactions or at such time as American Financial owns less than 50 percent of the Blockbuster shares issued at the closing. The closing is subject to certain customary conditions.
 H. Wayne Huizenga, chairman and chief executive officer of Blockbuster, commented that "we are excited about this opportunity for Blockbuster to become a major force in the distribution and production of filmed entertainment. The Spelling Group is a leading company in the entertainment business with an enormous library of programming available for both domestic and international distribution. To be associated with Aaron Spelling, one of the television industry's most creative and profitable producers of network programming, is an outstanding opportunity for Blockbuster."
 The operations of the Spelling Entertainment Group encompass a broad range of businesses in the filmed entertainment industry, supported by an extensive library of television series, feature films, television movies, mini-series and specials. The library includes more than 55 off-network series such as "Little House on the Prairie," "The Love Boat," "Dynasty," "Dallas" and "Twin Peaks," and an array of feature films incuding "Basic Instinct," "Total Recall," "Terminator 2," "Platoon" and the "Rambo" trilogy. Spelling Entertainment is also the producer of the hit network series "Beverly Hills, 90210" and "Melrose Place," as well as a number of made-for- television movies and mini-sof which are home video and music retailing. The company's video division includes 3,127 video stores operating in the system as of Dec. 31, 1992, of which 1,125 stores were franchise-owned and 2,002 were company-owned. The Blockbuster video system operates in 48 states and in nine international markets. The Blockbuster music division includes 238 Sound Warehouse and Music Plus stores operating in 40 metropolitan areas in the United States and 15 stores throughout Continental Europe, Australia and the United States owned by a joint venture with the Virgin Retail Group. The company also owns a 35-percent equity interest in Republic Pictures Corp., a leading independent producer and distributor of filmed entertainment.
 -0- 3/8/93 R
 /CONTACT: Wally Knief of Blockbuster Entertainment Corp., 305-832-3250/
 (BV SP)


CO: Blockbuster Entertainment Corp.; Spelling Entertainment Group
 Inc.; American Financial Corp. ST: Florida, California IN: ENT SU: TNM


SW -- NYON2R -- 3911 03/08/93 10:29 EST
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Publication:PR Newswire
Date:Mar 8, 1993
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