SC 13D 1 dzl13d-a4.txt AMENDMENT NO. 4 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________ SCHEDULE 13D (Amendment No. 4) Under the Securities Exchange Act of 1934 DISCOVERY ZONE, INC. (Name of Issuer) Common Stock, Par Value $.01 Per Share (Title of Class of Securities) 25468B 10 7 (CUSIP Number) Philippe P. Dauman, Esq. Viacom Inc. 200 Elm Street Dedham, Massachusetts 02026 Telephone: (617) 461-1600 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) Copy to: Stephen R. Volk, Esq. Shearman & Sterling 599 Lexington Avenue New York, NY 10022 Telephone: (212) 848-4000 September 29, 1994 (Date of Event which Requires Filing of this Statement) ======================================== If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box / /. Check the following box if a fee is being paid with this statement / /. Page 1 of ___ Pages CUSIP No. 25468B 10 7 (1) Name of Reporting Person S.S. or I.R.S. Identification No. of Above Person BLOCKBUSTER DISCOVERY INVESTMENT, INC. ---------------------------------------------------------------------------------------- I.R.S. Identification No. 65-0403677 ---------------------------------------------------------------------------------------- (2) Check the Appropriate Box if a Member of Group (See Instructions) / / (a) ------------------------------------------------------------------------------------ / / (b) ------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------- (3) SEC Use Only ---------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- (4) Sources of Funds (See Instructions) ---------------------------------------------------- ---------------------------------------------------------------------------------------- (5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e). ---------------------------------------------------------------------------------------- (6) Citizenship or Place of Organization Delaware ---------------------------------------------------- ---------------------------------------------------------------------------------------- ------------ Number of (7) Sole Voting Power -------------------------------------------------------------- Shares ------------------------------------------------------------------------------------ Beneficially (8) Shared Voting Power 24,220,354 -------------------------------------------------------- Owned by -------------------------------------------------------------------------------- Each (9) Sole Dispositive Power ---------------------------------------------------------- Reporting -------------------------------------------------------------------------------- Person (10) Shared Dispositive Power 24,220,354 ----------------------------------------------------- With ------------ -------------------------------------------------------------------------------- (11) Aggregate Amount Beneficially Owned by Each Reporting Person ---------------------------- 24,220,354 ------------------------------------------------------------------------------------- (12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) --- ---------------------------------------------------------------------------------------- (13) Percent of Class Represented by Amount in Row (11) -------------------------------------- 49.9% ---------------------------------------------------------------------------------------- (14) Type of Reporting Person (See Instructions) CO --------------------------------------------- ----------------------------------------------------------------------------------------
Page 2 of ___ Pages CUSIP No. 25468B 10 7 (1) Name of Reporting Person S.S. or I.R.S. Identification No. of Above Person BLOCKBUSTER AMUSEMENT HOLDING CORPORATION ---------------------------------------------------------------------------------------- I.R.S. Identification No. 65-0403679 ---------------------------------------------------------------------------------------- (2) Check the Appropriate Box if a Member of Group (See Instructions) (a) ------------------------------------------------------------------------------------ (b) ------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------ (3) SEC Use Only -------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------ (4) Sources of Funds (See Instructions) ---------------------------------------------------- ---------------------------------------------------------------------------------------- (5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e). ---------------------------------------------------------------------------------------- (6) Citizenship or Place of Organization Delaware ---------------------------------------------------- ---------------------------------------------------------------------------------------- ------------ Number of (7) Sole Voting Power --------------------------------------------------------------- Shares -------------------------------------------------------------------------------- Beneficially (8) Shared Voting Power 24,220,354 -------------------------------------------------------- Owned by -------------------------------------------------------------------------------- Each (9) Sole Dispositive Power ---------------------------------------------------------- Reporting -------------------------------------------------------------------------------- Person (10) Shared Dispositive Power 24,220,354 ----------------------------------------------------- With ------------ -------------------------------------------------------------------------------- (11) Aggregate Amount Beneficially Owned by Each Reporting Person ---------------------------- 24,220,354 ------------------------------------------------------------------------------------ (12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) ---- ---------------------------------------------------------------------------------------- (13) Percent of Class Represented by Amount in Row (11) -------------------------------------- 49.9% ---------------------------------------------------------------------------------------- (14) Type of Reporting Person (See Instructions) CO --------------------------------------------- ----------------------------------------------------------------------------------------
Page 3 of ___ Pages CUSIP No. 25468B 10 7 (1) Name of Reporting Person S.S. or I.R.S. Identification No. of Above Person VIACOM INC. ---------------------------------------------------------------------------------------- I.R.S. Identification No. 04-2949533 ---------------------------------------------------------------------------------------- (2) Check the Appropriate Box if a Member of Group (See Instructions) (a) ------------------------------------------------------------------------------------ (b) ------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------ (3) SEC Use Only -------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- (4) Sources of Funds (See Instructions) ---------------------------------------------------- ---------------------------------------------------------------------------------------- (5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e). ---- ---------------------------------------------------------------------------------------- (6) Citizenship or Place of Organization Delaware ---------------------------------------------------- ----------------------------------------------------------------------------------------- ------------ Number of (7) Sole Voting Power --------------------------------------------------------------- Shares -------------------------------------------------------------------------------- Beneficially (8) Shared Voting Power 24,220,354 -------------------------------------------------------- Owned by -------------------------------------------------------------------------------- Each (9) Sole Dispositive Power ---------------------------------------------------------- Reporting -------------------------------------------------------------------------------- Person (10) Shared Dispositive Power 24,220,354 ----------------------------------------------------- With ------------ -------------------------------------------------------------------------------- (11) Aggregate Amount Beneficially Owned by Each Reporting Person 24,220,354 ---------------------------------------------------------------------------------- (12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) --- ---------------------------------------------------------------------------------------- (13) Percent of Class Represented by Amount in Row (11) -------------------------------------- 49.9% ---------------------------------------------------------------------------------------- (14) Type of Reporting Person (See Instructions) CO --------------------------------------------- ----------------------------------------------------------------------------------------
Page 4 of ___ Pages CUSIP No. 25468B 10 7 (1) Name of Reporting Person S.S. or I.R.S. Identification No. of Above Person SUMNER M. REDSTONE ---------------------------------------------------------------------------------------- S.S. No. ---------------------------------------------------------------------------------------- (2) Check the Appropriate Box if a Member of Group (See Instructions) (a) ------------------------------------------------------------------------------------ (b) ------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------ (3) SEC Use Only ---------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- (4) Sources of Funds (See Instructions) ---------------------------------------------------- ---------------------------------------------------------------------------------------- (5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e). ---- ---------------------------------------------------------------------------------------- (6) Citizenship or Place of Organization United States ---------------------------------------------------- ---------------------------------------------------------------------------------------- ------------ Number of (7) Sole Voting Power -------------------------------------------------------------- Shares -------------------------------------------------------------------------------- Beneficially (8) Shared Voting Power 24,220,354 ------------------------------------------------------- Owned by -------------------------------------------------------------------------------- Each (9) Sole Dispositive Power ----------------------------------------------------- Reporting -------------------------------------------------------------------------------- Person (10) Shared Dispositive Power 24,220,354 ----------------------------------------------------- With -------- --------------------------------------------------------------------------- (11) Aggregate Amount Beneficially Owned by Each Reporting Person ---------------------------- 24,220,354 ---------------------------------------------------------------------------------------- (12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) ---- ---------------------------------------------------------------------------------------- (13) Percent of Class Represented by Amount in Row (11) -------------------------------------- 49.9% ---------------------------------------------------------------------------------------- (14) Type of Reporting Person (See Instructions) IN --------------------------------------------- ----------------------------------------------------------------------------------------
Page 5 of ___ Pages This Amendment No. 4 amends the Statement on Schedule 13D filed with the Securities and Exchange Commission on June 3, 1993 by Blockbuster Entertainment Corporation ("BEC"), Blockbuster Amusement Holding Corporation ("BAHC"), Blockbuster Fun & Fitness Holding Corporation ("BFF") and Blockbuster Discovery Investment, Inc. ("BDI"), as amended (the "Statement"). This Amendment No. 4 is filed with respect to the shares of common stock, par value $.01 per share (the "Common Stock"), of Discovery Zone, Inc. (the "Issuer"), a Delaware corporation, with its principal offices located at 205 North Michigan Avenue, Chicago, Illinois 60601. Capitalized terms used but not defined herein have the meanings assigned to such terms in the Statement. Item 2. Identity and Background. ----------------------- Item 2 is hereby amended and supplemented as follows: The Closing of the Transactions occurred on September 2, 1994. As a result thereof, BFF ceased to be a reporting person. As a result of the Merger described in Item 3 of this Amendment No. 4, Viacom Inc., a Delaware corporation ("Viacom"), and Mr. Sumner M. Redstone became reporting persons on the Statement. Viacom has its principal office at 200 Elm Street, Dedham, Massachusetts 02026. Viacom is a diversified entertainment, publishing and communications company which holds the common stock of Viacom International Inc., a Delaware corporation engaged in the entertainment and communications businesses, and Paramount Communications Inc., a Delaware corporation engaged in the entertainment and publishing businesses. As of July 31, 1994, approximately 85.2% of the Class A Common Stock, par value $.01 per share, of Viacom ("Viacom Class A Common Stock") and 51.7% of the Class B Common Stock, par value $.01 per share, of Viacom ("Viacom Class B Common Stock") was owned by National Amusements, Inc., a Maryland corporation ("NAI"). NAI has its principal office at 200 Elm Street, Dedham, Massachusetts 02026. NAI's principal businesses are owning and operating movie theaters in the United States and United Kingdom and holding common stock of Viacom. 91.7% of the issued and outstanding shares of capital stock of NAI are owned by Mr. Sumner Redstone, directly or as trustee of various trusts. Sumner M. Redstone is an individual whose business address is c/o National Amusements, Inc., 200 Elm Street, Dedham, Massachusetts 02026. Mr. Redstone's principal occupation is Chairman of the Board, President and Chief Executive Officer of NAI, 200 Elm Street, Dedham, Massachusetts 02026; and Chairman of the Board of Viacom, 200 Elm Street, Dedham, Massachusetts 02026. Mr. Redstone is a citizen of the United States. The directors and executive officers of Viacom are set forth on Schedule I attached hereto. Schedule I sets forth the following information with respect to each such person: Page 6 of ___ Pages (i) name; (ii) business address (or residence address where indicated); and (iii) present principal occupation or employment and the name, principal business and address of any corporation or other organization in which such employment is conducted. All of the directors and executive officers of Viacom are citizens of the United States. During the last five years, neither Viacom nor any person named in Schedule I attached hereto (including Mr. Redstone) has been (a) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (b) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. Item 3. Source and Amount of Funds or Other Consideration. ------------------------------------------------- Item 3 of the Statement is hereby amended and supplemented as follows: The shares of Common Stock the subject of the Statement were previously beneficially owned by BEC, and are beneficially owned by Viacom and Mr. Redstone as a result of BEC's merger with and into Viacom (the "Merger") pursuant to the Agreement and Plan of Merger, dated as of January 7, 1994, between Viacom and BEC, as amended as of June 15, 1994 (the "Merger Agreement"). Pursuant thereto, each share of Common Stock (other than shares held by Viacom, BEC and, if appraisal rights are available under the Delaware General Corporation Law, those holders who have demanded and perfected appraisal rights) has been cancelled and converted into the right to receive (i) 0.08 of a share of Viacom Class A Common Stock, (ii) 0.60615 of a share of Viacom Class B Common Stock and (iii) up to an additional 0.13829 of a share of Viacom Class B Common Stock, with such number of shares depending on market prices of Viacom Class B Common Stock during the year following the effective time of the Merger, evidenced by one variable common right of Viacom. A copy of the press release issued by Viacom on September 29, 1994, relating to the consummation of the Merger, is attached hereto as Exhibit 99.1 and is incorporated herein by reference. Item 5. Interest in Securities of the Issuer. ------------------------------------ Item 5 is hereby amended and supplemented as follows: The Supplemental Stock Option was cancelled on September 29, 1994 simultaneously with the consummation of the Merger. Page 7 of ___ Pages Item 7. Material to Be Filed as Exhibits. -------------------------------- 99.1 Press release issued by Viacom Inc. on September 29, 1994. 99.2 Limited Power of Attorney. Page 8 of ___ Pages Signature --------- After reasonable inquiry and to the best of our knowledge and belief, we certify that the information set forth in this Statement is true, complete and correct. October 4, 1994 BLOCKBUSTER DISCOVERY INVESTMENT, INC. By /s/ Thomas W. Hawkins ---------------------------- Name: Thomas W. Hawkins Title: Sr. Vice President, General Counsel and Secretary Page 9 of ___ Pages Signature --------- After reasonable inquiry and to the best of our knowledge and belief, we certify that the information set forth in this Statement is true, complete and correct. October 4, 1994 BLOCKBUSTER AMUSEMENT HOLDING CORPORATION By /s/ Thomas W. Hawkins ---------------------------- Name: Thomas W. Hawkins Title: Sr. Vice President, General Counsel and Secretary Page 10 of ___ Pages Signature --------- After reasonable inquiry and to the best of our knowledge and belief, we certify that the information set forth in this Statement is true, complete and correct. October 4, 1994 VIACOM INC. By /s/ Philippe P. Dauman ---------------------------- Name: Philippe P. Dauman Title: Executive Vice President, General Counsel, Chief Administrative Officer and Secretary Page 11 of ___ Pages Signature After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this Statement is true, complete and correct. October 4, 1994 * ------------------------------------ Sumner M. Redstone, Individually *By /s/ Philippe P. Dauman ----------------------------------------- Philippe P. Dauman Attorney-in-Fact under the Limited Power of Attorney filed as Exhibit 99.2 to the Statement, Amendment No. 4. Page 12 of ___ Pages
Schedule I Executive Officers Name and Address of Corporation or Business or Principal Occupation Other Organization in Name Residence Address or Employment Which Employed ---- ----------------- ------------- -------------- Sumner M. Redstone* Viacom Inc. Chairman of the Board National Amusements, 200 Elm Street of Viacom; Chairman of Inc. Dedham, MA 02026 the Board and Viacom Inc. President, Chief 200 Elm Street Executive Officer of Dedham, MA 02026 NAI Frank J. Biondi, Jr.* Viacom International President, Chief Viacom International Inc. Executive Officer of Inc. 1515 Broadway Viacom 1515 Broadway New York, NY 10036 New York, NY 10036 Raymond A. Boyce Viacom International Sr. VP, Corporate Viacom International Inc. Relations of Viacom Inc. 1515 Broadway 1515 Broadway New York, NY 10036 New York, NY 10036 Vaughn A. Clarke Viacom International Sr. VP, Treasurer of Viacom International Inc. Viacom Inc. 1515 Broadway 1515 Broadway New York, NY 10036 New York, NY 10036 Philippe P. Dauman* Viacom International Executive VP, General Viacom International Inc. Counsel, Chief Inc. 1515 Broadway Administrative Officer 1515 Broadway New York, NY 10036 and Secretary of Viacom New York, NY 10036 Thomas E. Dooley Viacom International Executive VP, Finance, Viacom International Inc. Corporate Development Inc. 1515 Broadway and Communications of 1515 Broadway New York, NY 10036 Viacom New York, NY 10036 Michael D. Fricklas Viacom International Sr. VP, Deputy General Viacom International Inc. Counsel of Viacom Inc. 1515 Broadway 1515 Broadway New York, NY 10036 New York, NY 10036 Rudolph L. Hertlein Viacom International Sr. VP of Viacom Viacom International Inc. Inc. 1515 Broadway 1515 Broadway New York, NY 10036 New York, NY 10036 Edward D. Horowitz Viacom International Sr. VP, Technology of Viacom International Inc. Viacom; Chairman, Chief Inc. 1515 Broadway Executive Officer of 1515 Broadway New York, NY 10036 New Media and New York, NY 10036 Interactive Television
____________________ * Director Page 1
Name and Address of Corporation or Business or Principal Occupation Other Organization in Name Residence Address or Employment Which Employed ---- ----------------- ------------- -------------- Kevin C. Lavan Viacom International Sr. VP, Controller and Viacom International Inc. Chief Accounting Inc. 1515 Broadway Officer of Viacom 1515 Broadway New York, NY 10036 New York, NY 10036 Henry Leingang Viacom International Sr. VP, Chief Viacom International Inc. Information Officer of Inc. 1515 Broadway Viacom 1515 Broadway New York, NY 10036 New York, NY 10036 William A. Roskin Viacom International Sr. VP, Human Resources Viacom International Inc. and Administration of Inc. 1515 Broadway Viacom 1515 Broadway New York, NY 10036 New York, NY 10036 George S. Smith, Jr. Viacom International Sr. VP, Chief Financial Viacom International Inc. Officer of Viacom Inc. 1515 Broadway 1515 Broadway New York, NY 10036 New York, NY 10036 Mark M. Weinstein Viacom International Sr. VP, Government Viacom International Inc. Affairs of Viacom Inc. 1515 Broadway 1515 Broadway New York, NY 10036 New York, NY 10036 Directors Steven R. Berrard* Blockbuster President and Chief Blockbuster Entertainment Executive Officer of Entertainment Group the Blockbuster Group One Blockbuster Plaza Entertainment Group One Blockbuster Plaza Fort Lauderdale, FL Fort Lauderdale, FL 33301 33301 William C. Ferguson NYNEX Corporation Chairman of the Board NYNEX Corporation 335 Madison Avenue and Chief Executive 335 Madison Avenue New York, NY 10017 Officer of NYNEX New York, NY 10017 H. Wayne Huizenga Blockbuster Vice Chairman of the Blockbuster Entertainment Board of Viacom; Entertainment Group Chairman of the Board Group One Blockbuster Plaza of Huizenga Holdings, One Blockbuster Plaza Fort Lauderdale, FL Inc.; Chairman of the Fort Lauderdale, FL 33301 Board of Spelling 33301 Entertainment Group Inc. George D. Johnson, Jr.* Blockbuster President -- Domestic Blockbuster Entertainment Consumer Division of Entertainment Group the Blockbuster Group One Blockbuster Plaza Entertainment Group One Blockbuster Plaza Fort Lauderdale, FL Fort Lauderdale, FL 33301 33301 Ken Miller CS First Boston Vice Chairman of CS CS First Boston Park Avenue Plaza First Boston Park Avenue Plaza 55 East 52nd Street 55 East 52nd Street New York, NY 10055 New York, NY 10055 Brent D. Redstone 31270 Eagle Crest Lane Self-Employed Evergreen, CO 80439 [Residence]
- -------- * It is anticipated that the Board of Directors of Viacom will promptly elect Messrs. Berrard and Johnson to the Board, as disclosed in the Joint Proxy Statement/Prospectus of Viacom and BEC in connection with the Merger. Page 2
Name and Address of Corporation or Business or Principal Occupation Other Organization in Name Residence Address or Employment Which Employed ---- ----------------- ------------- -------------- Frederic V. Salerno NYNEX Corporation Vice Chairman--Finance NYNEX Corporation 335 Madison Avenue and Business 335 Madison Avenue New York, NY 10017 Development of NYNEX New York, NY 10017 William Schwartz Yeshiva University VP for Academic Affairs Yeshiva University 2495 Amsterdam Avenue (chief academic 2495 Amsterdam Avenue New York, NY 10033 officer) of Yeshiva New York, NY 10033 University
Page 3 Exhibit Index Exhibit No. Description Page No. - ---------- ----------- -------- 99.1 Press release issued by Viacom Inc. on September 29, 1994. 99.2 Limited Power of Attorney