SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------------------------
SCHEDULE 13D
(Amendment No. 5)
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.
1515 Broadway
New York, NY 10036
Telephone: (212) 258-6139
(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
November 16, 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 |_|.
1
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
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(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 26,651,644
-------------------------------------------
Owned by --------------------------------------------------------------
Each (9) Sole Dispositive Power----------------------------------------
Reporting --------------------------------------------------------------
Person (10) Shared Dispositive Power 26,651,644
--------------------------------------
With
(11) Aggregate Amount Beneficially Owned by Each Reporting Person 26,651,664
-------------
--------------------------------------------------------------------------
(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
-------------------------------
--------------------------------------------------------------------------
2
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 26,651,644
Owned by -----------------------------------------
----------------------------------------------------------------
Each (9) Sole Dispositive Power--------------------------------------
Reporting ----------------------------------------------------------------
Person (10) Shared Dispositive Power 26,651,644
With -----------------------------------
----------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person----------
26,651,644
----------------------------------------------------------------------
(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
---------------------------
----------------------------------------------------------------------
3
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 26,651,644
Owned by -----------------------------------------
-----------------------------------------------------------------
Each (9) Sole Dispositive Power--------------------------------------
-----------------------------------------------------------------
Reporting
Person (10) Shared Dispositive Power 26,651,644
With ------------------------------------
-----------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person----------
26,651,644
----------------------------------------------------------------------
(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
---------------------------
----------------------------------------------------------------------
4
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 26,651,644
Owned by ---------------------------------------
---------------------------------------------------------------
Each (9) Sole Dispositive Power------------------------------------
Reporting ---------------------------------------------------------------
Person (10) Shared Dispositive Power 26,651,644
With ----------------------------------
---------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person----------
26,651,644
----------------------------------------------------------------------
(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
---------------------------
5
This Amendment No. 5 amends the Statement on Schedule 13D filed with the
Securities and Exchange Commission on June 3, 1993, as amended by Sumner M.
Redstone, Viacom Inc. ("Viacom") , Blockbuster Amusement Holding Corporation,
and Blockbuster Discovery Investment, Inc. (the "Statement"). This Amendment No.
5 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 to reflect changes in the
directors and executive officers of Viacom Inc. as set forth on Schedule I
attached hereto. Schedule I sets forth the following information with respect to
each such person:
(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 4. Purpose of the Transaction.
---------------------------
Item 4 is hereby amended and supplemented as follows:
6
On November 16, 1994, the Issuer increased the size of its Board of
Directors (the "Issuer Board") by two directors by electing Steven R. Berrard
and George D. Johnson, Jr., each of whom are directors of Viacom. There are
currently 9 directors of the Issuer; 3 directors of the Issuer are directors of
Viacom.
Item 7. Material to Be Filed as Exhibits.
---------------------------------
99.1 Press release issued by Discovery Zone, Inc. on November 22, 1994.
7
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, Inc.
1515 Broadway of Viacom; Chairman 200 Elm Street
New York, NY 10036 of the Board and Dedham, MA 02026
President, Chief
Executive Officer of
National Amusements, Inc.
Frank J. Biondi, Jr.* Viacom International Inc. President, Chief Viacom International Inc.
1515 Broadway Executive Officer 1515 Broadway
New York, NY 10036 of Viacom New York, NY 10036
Vaughn A. Clarke Viacom International Inc. Sr. VP, Treasurer of Viacom International Inc.
1515 Broadway Viacom 1515 Broadway
New York, NY 10036 New York, NY 10036
Philippe P. Dauman* Viacom International Inc. Executive VP, General Viacom International Inc.
1515 Broadway Counsel, Chief 1515 Broadway
New York, NY 10036 Administrative Officer New York, NY 10036
and Secretary of Viacom
Thomas E. Dooley Viacom International Inc. Executive VP, Finance, Viacom International Inc.
1515 Broadway Corporate Development and 1515 Broadway
New York, NY 10036 Communications of Viacom New York, NY 10036
Carl D. Folta Viacom International Inc. Sr. VP, Corporate Viacom International Inc.
1515 Broadway Relations of Viacom 1515 Broadway
New York, NY 10036 New York, NY 10036
Michael D. Fricklas Viacom International Inc. Sr. VP, Deputy General Viacom International Inc.
1515 Broadway Counsel of Viacom 1515 Broadway
New York, NY 10036 New York, NY 10036
Rudolph L. Hertlein Viacom International Inc. Sr. VP of Viacom Viacom International Inc.
1515 Broadway 1515 Broadway
New York, NY 10036 New York, NY 10036
Edward D. Horowitz Viacom International Inc. Sr. VP, Technology of Viacom International Inc.
1515 Broadway Viacom; Chairman, Chief 1515 Broadway
New York, NY 10036 Executive Officer New York, NY 10036
of New Media and
Interactive Television
Kevin C. Lavan Viacom International Inc. Sr. VP, Controller and Viacom International Inc.
1515 Broadway Chief Accounting Officer 1515 Broadway
New York, NY 10036 of Viacom New York, NY 10036
- - --------------------------
* Also a Director
8
Name and Address
of Corporation or
Business or Principal Occupation Other Organization in
Name Residence Address or Employment Which Employed
- - ---- ----------------- -------------------- ------------------------
Henry Leingang Viacom International Inc. Sr. VP, Chief Information Viacom International
1515 Broadway Officer of Viacom Inc.
New York, NY 10036 1515 Broadway
New York, NY 10036
William A. Roskin Viacom International Inc. Sr. VP, Human Resources Viacom International
1515 Broadway and Administration of Inc.
New York, NY 10036 Viacom 1515 Broadway
New York, NY 10036
George S. Smith, Jr. Viacom International Inc. Sr. VP, Chief Financial Viacom International
1515 Broadway Officer of Viacom Inc.
New York, NY 10036 1515 Broadway
New York, NY 10036
Mark M. Weinstein Viacom International Inc. Sr. VP, Government Viacom International
1515 Broadway Affairs of Viacom Inc.
New York, NY 10036 1515 Broadway
New York, NY 10036
DIRECTORS
---------
Steven R. Berrard Blockbuster Entertainment President and Chief Blockbuster
Group Executive Officer Entertainment
One Blockbuster Plaza of the Blockbuster Group
Fort Lauderdale, FL Entertainment Group One Blockbuster Plaza
33301 Fort Lauderdale, FL
33301
William C. Ferguson NYNEX Corporation Chairman of the Board and NYNEX Corporation
335 Madison Avenue Chief Executive Officer of 335 Madison Avenue
New York, NY 10017 NYNEX New York, NY 10017
H. Wayne Huizenga Blockbuster Entertainment Vice Chairman of Viacom Blockbuster
Group Inc.; Chairman of the Entertainment
One Blockbuster Plaza Board and Chief Group
Fort Lauderdale, FL Executive Officer of One Blockbuster Plaza
33301 Blockbuster Entertainment Fort Lauderdale, FL
Group; Chairman of the 33301
Board of Huizenga
Holdings, Inc.; Chairman
of the Board of Spelling
Entertainment Group Inc.
George D. Johnson, Jr. Blockbuster Entertainment President -- Domestic Blockbuster
Group Consumer Division Entertainment
One Blockbuster Plaza of the Blockbuster Group
Fort Lauderdale, FL Entertainment Group One Blockbuster Plaza
33301 Fort Lauderdale, FL
33301
Ken Miller C.S. First Boston Vice Chairman of C.S. C.S. 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]
Shari Redstone National Amusements, Inc. Executive Vice President National Amusements,
200 Elm Street of National Amusements, Inc.
Dedham, MA 02026 Inc. 200 Elm Street
Dedham, MA 02026
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 officer) 2495 Amsterdam Avenue
New York, NY 10033 of Yeshiva University New York, NY 10033
9
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.
December 12, 1994 BLOCKBUSTER DISCOVERY
INVESTMENT, INC.
By /s/ Thomas W. Hawkins
---------------------------------
Name: Thomas W. Hawkins
Title:Executive Vice President,
General Counsel and Secretary
10
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.
December 12, 1994 BLOCKBUSTER AMUSEMENT
HOLDING CORPORATION
By /s/ Thomas W. Hawkins
--------------------------------
Name: Thomas W. Hawkins
Title:Executive Vice President,
General Counsel and Secretary
11
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.
December 12, 1994 VIACOM INC.
By /s/ Philippe P. Dauman
--------------------------------
Name: Philippe P. Dauman
Title: Executive Vice President,
General Counsel, Chief
Administrative Officer and
Secretary
12
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.
December 12, 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.
13
Exhibit Index
Exhibit No. Description Page No.
- - ----------- ----------- --------
99.1 Press release issued by
Discovery Zone, Inc. on November 22, 1994.
14
FOR IMMEDIATE RELEASE CONTACT: Debby Robinson
(312) 616-3943
DISCOVERY ZONE NAMES TWO NEW MEMBERS
TO BOARD OF DIRECTORS
CHICAGO, IL (November 22, 1994) -- Discovery Zone, Inc. (Nasdaq: ZONE) has
added two new members to its Board of Directors. Steven R. Berrard, President
and Chief Executive Officer of Viacom Inc.'s Blockbuster Entertainment Group,
and George D. Johnson, Jr., President and Chief Operating Officer, Retail
Operations of Blockbuster Entertainment Group, were elected to the Board on
November 16, 1994.
Headquartered in Chicago, Ill., Discovery Zone, Inc. is the nation's
largest owner and operator of indoor entertainment and fitness facilities
(FunCenters) for children 12 and under. On September 2, 1994, Blockbuster
Entertainment Corporation increased its equity interest in Discovery Zone from
approximately 20 percent to approximately 50 percent. Blockbuster was then
acquired by Viacom Inc. More than 800 Discovery Zone FunCenters are currently
open and operating throughout the United States, Mexico, Canada, the United
Kingdom and Spain, with a FunCenter scheduled to open in France in early 1995.
15
