Viacom Delays Spinoff of Blockbuster Shares

Viacom Inc. will not proceed with a planned spinoff to shareholders of its Blockbuster Inc. holdings until the video rental chain’s share price exceeds $20, which would require about a 27% increase from the current level. The word came in a company registration statement filed with the Securities and Exchange Commission. The plan to distribute Viacom’s Blockbuster stock to its shareholders also is contingent on a ruling from the Internal Revenue Service, saying the exchange offer will be tax-free to Viacom and its shareholders, considering Viacom’s planned acquisition of CBS Corp. Dallas-based Blockbuster went public in August, selling an 18% stake for $15 a share. The shares closed Tuesday at $16, up 25 cents on the NYSE. Viacom Chairman Sumner Redstone has said he wants to separate Blockbuster from the company because it isn’t getting the valuation it deserves on Wall Street.