NEWS CORP. ANNOUNCES PLAN TO BUY NEW WORLD.Byline: Jennifer Bowles Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Rupert Murdoch's News Corp. would become the nation's biggest owner of television stations through a $2.48 billion deal announced Wednesday to buy New World Communications For the company controlled by Sun Myung Moon and his Unification Church which owns The Washington Times and United Press International, see . New World Communications Group. The 10 Fox TV affiliates owned by New World will bring News Corp.'s holdings to 22 Fox stations, including nine in the top 10 markets, reaching 40 percent of the nation's 95.9 million TV homes. That's a huge base from which to launch and promote new shows. ``It will be a tremendous boost,'' said John Matoian, Fox's head of programming at News Corp. A greater number of owned-and-operated stations means ``you have a better chance of getting that Fox brand to more viewers,'' he said. The deal is just the latest in a series of consolidations in the broadcasting industry. Time Warner Inc. said Wednesday the Federal Trade Commission staff agreed to approve its $7.5 billion purchase of Turner Broadcasting System Turner Broadcasting System, Inc. (often abbreviated TBS Networks or TBS, inc.) is the company managing the collection of cable networks and properties started by Robert Edward "Ted" Turner from the mid-1970s to the late-1990s. Inc. that would create the world's largest media and entertainment company. Last month, CBS (Cell Broadcast Service) See cell broadcast. owner Westinghouse Electric Corp. announced that it was spending $3.9 billion to purchase Infinity Broadcasting's 83 radio stations. Another mega-deal came recently with the Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966) Disney, Walter Elias Disney Co.'s purchase of Capital Cities/ABC. News Corp.'s deal doubles the market share of Fox stations to 40 percent of the nation's homes, surpassing the current leader CBS, which reaches an estimated 32 percent of the market, said analyst John Reidy of Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. Inc. Gaining stations in such markets as Atlanta; Austin, Texas; Cleveland; Dallas; Detroit; Kansas City, Mo.; Milwaukee; Phoenix; St. Louis; and Tampa, Fla., give Fox ``a very significant launching pad for its entertainment programming,'' Reidy said. Fox also will be able to broaden its sports programming because many of those cities have major teams. Fox will also gain the company's New World Entertainment, Moving Target and Cannell Entertainment operations, through which it produces and distributes TV programs such as ABC's ``Second Noah,'' the syndicated ``Renegade'' and USA's ``Silk Stalkings.'' New World Chief Executive William C. Bevins called the offer ``an extremely attractive opportunity for our shareholders.'' New World shareholders would get 1.45 shares of News Corp. preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. valued at about $27 for each New World share. The deal is subject to approval by stockholders of New World and by 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. . It is expected to close early in 1997. The deal leaves investor Ronald O. Perelman, who controls New World, with no active holdings, but an equity interest that is much smaller and nonvoting, said New World spokesman Michael Diamond. Also, Brandon Tartikoff announced his resignation as chairman of New World Entertainment, effective July 31. Tartikoff, an alumnus ALUMNUS, civil law. A child which one has nursed; a foster child. Dig. 40, 2, 14. of Paramount Pictures and 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. , praised the consolidation. He said it would produce ``an even more vital and powerful force in television,'' but his ``goals are to get closer to the product, and therefore I concluded that those goals will best be fulfilled elsewhere.'' New World had reportedly been on the verge On the Verge (or The Geography of Yearning) is a play written by Eric Overmyer. It makes extensive use of esoteric language and pop culture references from the late nineteenth century to 1955. this week of announcing its purchase of King World Productions, a powerful production syndicator which distributes the hit shows ``Jeopardy '', ``Wheel of Fortune'' and ``The Oprah Winfrey Show.'' Diamond said it ``was hard to say,'' how close the deal, valued at about $1.5 billion, came to being finalized. ``We didn't make a deal and we have no deal,'' he said. News Corp. had reportedly looked to purchase New World earlier this year, but the talks collapsed because the companies could not agree on a price. CAPTION(S): Photo Photo: (color) Rupert Murdoch Deal expands Fox TV |
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