More Mergers Likely in Television World.When a high school chaperone chaperone /chap·er·one/ (shap´er-on) someone or something that accompanies and oversees another. molecular chaperone relaxes the rules, there's a lot of pairing up. The same thing is happening in the TV broadcast world. After the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. loosened curbs on ownership in major markets in August 1999, six big TV station group owners started getting cozy. Predictable? Yes. And with the chaperone still looking the other way, other broadcasters may turn bold. Keep an eye on Walt Disney Co.'s ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. , Barry Diller's USA Networks Inc. and the Tribune Co. Each owns stations in the coveted cov·et v. cov·et·ed, cov·et·ing, cov·ets v.tr. 1. To feel blameworthy desire for (that which is another's). See Synonyms at envy. 2. To wish for longingly. See Synonyms at desire. New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Los Angeles markets and could want more. If nothing else, these companies might feel the need to catch up. Viacom Inc. paid $50 billion to waltz off with CBS (Cell Broadcast Service) See cell broadcast. Corp. in April. Two weeks ago, News Corp. agreed to pay $5.35 billion for Chris-Craft Industries Inc. and two affiliated companies. General Electric Co.'s NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. found a cheaper date in Paxson Communications Corp., paying just $415 million last September for a 32 percent stake. Paxson, which owns 66 lesser-known TV stations, has begun running some NBC programming along with its "family-friendly" network fare. Consolidation looks good to shareholders, but TV viewers may be irked by changes. Some local newscasts have been disappearing. In Jacksonville, Fla., viewers see the same local newscast on the ABC and NBC affiliates because Gannett Co. now owns both stations and can economize e·con·o·mize v. e·con·o·mized, e·con·o·miz·ing, e·con·o·miz·es v.intr. 1. To practice economy, as by avoiding waste or reducing expenditures. 2. . Viacom may shutdown the United Paramount Network if it loses the affiliation of eight Chris-Craft stations in the News Corp. sale. That would displease dis·please v. dis·pleased, dis·pleas·ing, dis·pleas·es v.tr. To cause annoyance or vexation to. v.intr. To cause annoyance or displeasure. fans of "Moesha," "The Parkers" and "Smackdown!" Prior to last August, broadcasters were limited to owning one TV station in a given market. The FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. decided to allow common ownership of two TV stations, if eight other stations continued to operate in the market under separate ownership. But the sweetest break for the big broadcasters came with the FCC's decision not to count a second station in a local market toward the broadcaster's national audience cap, which is set at 35 percent. The FCC decision sparked the merger between Viacom and CBS, which owned TV stations in six of the same markets. News Corp. said its bid for Chris-Craft was prompted by overlap in four cities, including New York and Los Angeles, the top two markets. In a conference call with analysts and reporters, News Corp. executives said they expect to reap savings from combined engineering and administrative functions, and gain leverage with program suppliers and advertisers. "You're just going to have to deal with us," said Mitchell Stern, chairman and chief executive of News Corp.'s Fox Television Stations The Fox Television Stations (FTS) are a group of television stations located throughout the United States which are owned-and-operated by the Fox Broadcasting Company. FTS also produces the Fox program COPS. Inc. unit. Fox is particularly strong in Los Angeles, where it already owns a TV station and two regional sports networks for cable TV Richard Bilotti, an analyst with Morgan Stanley Dean Witter & Co., dubbed the combination "the first quadopoly in history." With the Chris-Craft deal, News Corp. Chairman Rupert Murdoch might eliminate UPN UPN User Principal Name (Microsoft Windows 2000) UPN United Paramount Network UPN Unión del Pueblo Navarro (Navarrese People Union) UPN Umgekehrte Polnische Notation as a competitor to his own Fox network, simply by ending Chris-Craft's affiliation with the money-losing UPN. Eight of Chris-Craft's 10 stations are UPN affiliates in key markets. Until March, Chris-Craft owned 50 percent of the network, but it sold its stake to Viacom after losing a hitter court fight between the partners. Viacom recently made efforts to buy Chris-Craft, because an outright purchase could have resolved the uncertainty about UPN's future: the affiliation agreements with Chris-Craft expire in January. But "duopply" provided an equal, if not better, incentive for a Viacom bid, because its newly acquired CBS stations overlap with Chris-Craft in six markets, including New York, Los Angeles and San Francisco. Indeed, the strategic fit is so good that some Wall Street investors hope Viacom will make a higher bid. Unlike many recent media deals, News Corp. and Chris-Craft did not negotiate a "break-up" fee. News Corp. President Peter Chernin said in a conference call last week that UPN's fate is of little concern to him, but he remarked that Viacom Chairman Sumner Redstone and President Mel Karmazin have lobbied hard in Washington for FCC approval to keep both UPN and CBS. "I would assume they'll keep it going if they're true to their word," Chernin said. No doubt News Corp. enjoys seeing Viacom over a barrel. In Washington, Viacom made much of the fact that UPN hired minorities for many of its shows and has gained popularity with black viewers. Shutting down UPN might be politically awkward. Who knows? Maybe News Corp. will accept a princely sum from Viacom to extend the Chris-Craft stations' affiliation with UPN. One thing is certain: The moguls play for bigger stakes than the game shows they're airing for you and me. |
|
||||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion