SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 8-K
                    ---------------------------------------


                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934
                     --------------------------------------


        Date of Report (date of earliest event reported): July 25, 1995



                                   VIACOM INC.
                     --------------------------------------
             (Exact name of registrant as specified in its charter)



        Delaware          1-9553                   04-2949533
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(State or other         (Commission               (IRS Employer
jurisdiction of          File Number)             Identification No.)
incorporation)


        1515 Broadway, New York, New York         10036
- ------------------------------------------------------------------------------
(Address of principal executive offices)        (Zip Code)


Registrant's telephone number, including area code:  (212) 258-6000
                                                    -----------------





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Item 5. Other Events.
        ------------

     On July 25, 1995, Viacom Inc., a Delaware corporation ("Viacom"), announced
an  agreement  to spin  off its  cable  systems  serving  close  to 1.2  million
customers to Viacom's  shareholders in an exchange offer (the "Exchange  Offer")
that  will  reduce  Viacom's  debt  obligations  by  $1.7  billion.   Under  the
transaction,  such cable  systems are valued at more than $2.25  billion,  which
amount will vary due to closing  adjustments for capital  expenditures,  working
capital and other items.

     The  Exchange  Offer will permit  shareholders  of Viacom Inc.  Class A and
Class B Common  Stock  ("Viacom  Stock") to  exchange  such shares for shares of
cumulative,  redeemable,  exchangeable  preferred  stock  of a  subsidiary  (the
"Subsidiary") of Viacom through which Viacom owns and conducts its cable systems
business.  Consummation  of the  Exchange  Offer is  expected  to  result in the
redemption of  approximately 3% of Viacom Stock. The ratio at which Viacom Stock
will be exchanged for cumulative,  redeemable,  exchangeable preferred shares of
the  Subsidiary  ("Preferred  Stock") will be  determined by dutch auction among
holders of Viacom Stock who choose to tender their shares in the Exchange Offer.
The range  within  which bids to  exchange  will be made will be  determined  by
Viacom.  The exchange  ratio of Preferred  Stock to Viacom Stock in the Exchange
Offer will  permit  holders of Viacom  Stock to receive a premium  (capped at 12
1/2%) to the market  price of Class B shares of Viacom  common stock at the time
of such exchange.  Upon  completion of the Exchange  Offer,  the Preferred Stock
will be issued at an aggregate par value equal to the value of the cable systems
(after closing adjustments and debt),  estimated to be in excess of $550 million
at the time of the Exchange Offer.

     Also   on   July   25,   1995,    Viacom,   the   Subdidiary   ompany   and
Tele-Communications,  Inc. ("TCI") entered into a definitive agreement providing
for the sale of the Subsidiary to TCI, pursuant to which TCI will make a capital
contribution of $350 million to the Subsidiary in exchange for all of the common
stock  of the  Subsidiary.  The sale  will  take  place  immediately  after  the
completion of the Exchange Offer. Five years after such sale and Exchange Offer,
the Preferred Stock will become  exchangeable for TCI Class A Common Stock ("TCI
Stock"), at the option of the holders of the Preferred Stock.

     National  Amusements,   Inc.,  the  parent  company  of  Viacom,  will  not
participate in the Exchange Offer.



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     Consummation of the Exchange Offer and the related  transactions is subject
to certain  regulatory  approvals and other  conditions,  including  among other
things,  (i)  approvals  of local  franchise  authorities,  (ii)  expiration  or
termination  of  the  waiting  period  under  the  Hart-Scott-Rodino   Antitrust
Improvements  Act of 1976, and (iii) the satisfaction of Viacom with the federal
income tax treatment of the Exchange Offer and the transactions related thereto.

     A copy of the press release issued by Viacom, dated July 25, 1995, relating
to the  above-described  transaction  is attached  hereto as Exhibit 99.1 and is
incorporated herein by reference.

     Viacom and TCI have agreed to settle the antitrust  action commenced by the
Company on September 23, 1993 against TCI and certain of TCI's affiliates in the
District Court for the Southern District of New York (Viacom  International Inc.
v.  Tele-Communications,  Inc., et. al., Case No 93 Civ. 6658 (LAP)), subject to
certain  conditions,  including,  among other things, the effectiveness of a new
affiliation  agreement  covering  TCI's  long-term  carriage of Showtime and The
Movie Channel and the consummation of the cable transaction described above.

Item 7. Financial Statements and Exhibits.
        ---------------------------------

     (c) The following exhibit is filed as part of this report on Form 8-K:

          99.1   Press Release issued by Viacom Inc. dated July 25, 1995.



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                                   SIGNATURE


     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                                VIACOM INC.



Date:  July 25, 1995                    By:  /s/ Michael D. Fricklas
                                            ----------------------------------
                                        Name:  Michael D. Fricklas
                                        Title: Senior Vice President, 
                                               Deputy General Counsel





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                                 EXHIBIT INDEX
                                 -------------



        Exhibit No.                     Description
        ----------                      -----------

        99.1            Press Release issued by Viacom Inc. dated July 25, 1995



                                  EXHIBIT 99.1
                                  ------------



                VIACOM TO SPIN OFF CABLE SYSTEMS TO SHAREHOLDERS

             Tele-Communications, Inc. Agrees To Acquire All Common
                           Shares of New Cable Company

                Viacom To Reduce Debt by $1.7 billion and Redeem
                        Approximately 3% of Common Stock



     New York,  NY,  July 25,  1995 -- Viacom  Inc.  (AMEX:  VIA and VIAB) today
announced  an  agreement  to spin off its cable  systems to  shareholders  in an
exchange  offer that enables the company to unlock the value of non-core  assets
and reduce its debt by $1.7 billion. The transaction values the cable systems --
which serve close to 1.2 million  subscribers in the San Francisco Bay area; the
Puget Sound region; Salem, Oregon;  Nashville,  Tennessee and Dayton, Ohio -- at
more than $2.25 billion.

     The spin-off will be  accomplished  by a  dutch-auction  exchange  offer to
Viacom  shareholders.  The exchange offer will give shareholders the opportunity
to continue to hold a stake in the cable business by exchanging shares of Viacom
Inc.  Class A and Class B Common  Stock for  shares  of  cumulative,  redeemable
exchangeable  preferred stock of the new cable company. The spin-off will result
in the redemption of approximately 3% of Viacom's Common Stock.

     Viacom  also  announced  that it has  signed a  definitive  agreement  with
Tele-Communications,  Inc. (TCI) under which TCI, through a capital contribution
of $350 million in cash, will purchase all of the common shares of the new cable
company immediately following the spinoff.

     Sumner M.  Redstone,  Chairman  of the Board of Viacom  Inc.,  said,  "This
transaction reduces our debt significantly and allows us to realize the value of
our  cable  operations  --  putting  us  well on our  way to  delivering  on the
financial  goals  we set  for  ourselves.  Equally  important,  the  transaction
furthers our primary  strategic  focus -- enhancing  our position as the world's
premier  content-driven  media company while  continuing to deliver  outstanding
operating performance."

     Frank J. Biondi, Jr., President and Chief Executive Officer of Viacom Inc.,
said,  "This is a dramatic  step forward in reducing our debt and insuring  that
Viacom and its shareholders receive the maximum value for assets which no longer


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fit our  long-term  growth plans.  It is also  gratifying to know that our cable
operations,  a major contributor to Viacom's success over the years, will now be
optimally  positioned for the increasingly  competitive cable environment with a
management committed to realizing their full potential."

     The $2.25 billion of value will vary due to certain closing adjustments for
capital  expenditures,  working  capital and other items.  The preferred  stock,
which will be  exchangeable  at the holders' option for TCI Class A Common Stock
after five years,  will be issued at  aggregate  par value equal to the value of
the cable  systems  (after  closing  adjustments  and debt),  estimated to be in
excess of $550 million at the time of the spin-off.  The exchange  ratio for the
dutch  auction will be determined  by  shareholders  within the range offered by
Viacom and will permit Viacom  shareholders  to receive a premium  (capped at 12
1/2%) to the market price of Viacom Class B shares at the time.

     The  exchange  offer and  related  transactions  are  subject to  customary
conditions,  including  regulatory  approvals and  consummation  of the exchange
offer.  The  transactions  are  expected to close in the first  quarter of 1996.
National Amusements, Inc., the parent company of Viacom, will not participate in
the exchange offer.

     Viacom Inc.  is one of the world's  largest  entertainment  and  publishing
companies and a leading force in nearly every segment of the international media
marketplace.  The operations of Viacom include  Blockbuster  Video,  Blockbuster
Music, MTV Networks,  Paramount Parks, Paramount Pictures, Paramount Television,
Showtime  Networks,  Simon & Schuster and Viacom  Interactive  Media, as well as
radio and television  stations,  and movie screens in 11 countries.  Viacom also
has a substantial interest in Discovery Zone and a majority interest in Spelling
Entertainment Group. National Amusements, Inc., a closely held corporation which
owns and operates  more than 900 movie  screens in the U.S. and the U.K., is the
parent company of Viacom.

     NOTE:  A  registration  statement  relating  to the  stock of the new cable
company  to be  exchanged  will  be  filed  with  the  Securities  and  Exchange
Commission (SEC).  Stock of the new cable company may not be exchanged,  nor may
offers to exchange be  accepted,  prior to the time the  registration  statement
becomes effective. This announcement does not constitute an offer to exchange or
the  solicitation  of an offer to exchange  nor shall  there be any  exchange of
stock of the new cable  company in any state in which such offer,  solicitation,
or exchange would be unlawful prior to registration or  qualification  under the
securities  laws of any such  state.  Stock  of the new  cable  company  will be
offered only by means of a prospectus filed with the SEC.

                                     # # #


Contact:   Carl Folta
           Viacom Inc.
           212/258-6352