Broadcasting (Oct - Dec 1950)

SALE General Tire Bid Sets Record DON LEE RECORD-SETTING $12,320,000 purchase of the Don Lee radio and ' television properties by General Tire & Rubber Co. and its parlay sale of Don Lee's KTSL (TV) Los ! Angeles to CBS [Broadcasting, Oct. 23] are slated to be placed before FCC within a fortnight for approval. i| General Tire, owner of Yankee Network, outbid Hoffman Radio & Television Corp. and associates to acquire all stock controlling Don Lee Broadcasting System and KTSL from the Thomas S. Lee Estate, simultaneously announcing the television station would go to CBS. Terms of the KTSL-CBS transaction were not disclosed. But it was expected that CBS would acquire station equipment at $300,000 to $600,000, depending on cur[ rent appraisals, and would lease space in Don Lee's new $3 million studio building on a long-term basis — 10 to 15 years — and also lease the Mt. Wilson TV site with option to buy. j It was estimated that the $5 milI lion-plus which the Lee estate alI i ready held in cash and quick assets, i plus returns from certain other ji properties to be liquidated, would i bring General Tire's actual outlay I ' down to approximately $6 million, ! and that about half of this would j be borne by CBS through its purI chase of KTSL equipment and, primarily, its long-term leasehold I arrangements. The bid was made through the First National Bank of Akron as trustee of the retirement plan for employes of General Tire and certain other subsidiaries, and it was thought the trustee would retain ownership of the studio building and other real estate while transferring all other radio properties to General Tire and TV facilities j to CBS. ! Jones To Head KTSL j CBS announced that Merle I Jones, general manager of KNXj CBS Hollywood and the Columbia I Pacific Network, would become general manager of KTSL when CBS takes over. Thomas G. O'Neil, vice president of General Tire and vice , chairman of Mutual, said the Don ! Lee Network and stations will be under the executive management of Willet H. Brown, now Don Lee : president. I Lewis Allen Weiss, Don Lee : board chairman, who had been expected to remain with the network j if the Hoffman group had acquired it, meanwhile expressed his desire to bow out of the organization and asked attorneys for the Lee estate last week to activate the resignation which he submitted July 19. The Los Angeles Times, 51% owner of KTTV (TV) Los Angeles, said it will acquire full ownership when CBS disposes of its 49% interest in KTTV under FCC's duopoly rules. Authorities said General Tire will also dispose of one of its stations— KDB Santa Barbara — in comformity with FCC's AM multiple ownership "policy." Unlike TV, the AM duopoly rule does not specify a maximum number of stations which may be owned by a single entity, but FCC's policy has been to keep the limit at seven. General Tire already owns WNAC Boston, WONS Hartford, WICC Bridgeport, and WEAN Providence in the Yankee group, and is acquiring KHJ-AM-FM Los Angeles, KFRC San Francisco, KGB ACTIVITY of radio network advertisers during the summer of 1950 continued to show an increase as compared to 1949, according to figures compiled for August and released to Broadcasting by Publishers Information Bureau. The networks received $12,561,675 total billing during August 1950, while in the same month last year the gross network time sales were $12,164,974. The total network sales of $121,861,900 from January to August 1950 still lagged behind the $125,027,864 eight-month cumulative of last year. Procter & Gamble, perennial leader of radio advertisers, once San Diego, and KDB in the Don Lee transaction. Purchase of the Lee interests also gives General Tire another 19% of the stock of Mutual network— in which it already owns about 19% — as well as Pacific Northwest Broadcasting Co., through which the Don Lee Network has 25 affiliates in addition to 16 affiliated stations in California. Whether General Tire will have to sell its Mutual holdings down to a total of 30%, to meet MBS provisions, will be determined by the Mutual board of directors. more spent over $1 million during the month of August, while General Mills with expenditures of $853,178 placed second. Third place was taken by Miles Labs who spent $696,545 in gross billing and Sterling Drug ranked fourth, with $562,278. Philip Morris Co. became fifth heaviest advertisers in August, by purchasing $426,324 worth of radio time. Among the product groups, the Food & Food Products bought $3,052,005 in network time, to rank first. General Mills led that group by spending $853,178 for radio advertising. The manufacturers of Drugs & Remedies bought $1,896,578 worth of time, to place second * * * The overall transaction is the largest in radio history, over-shadowing the $8 million gross figure in Edward J. Noble's 1943 purchase of the Blue Network (ABC) and also exceeding the net price of approximately $6,600,000 involved in the ABC transaction. Mr. O'Neil pointed out that the Lee estate included "substantially over $5 million in cash and quick assets," which would put the net price at around $7 million (before further liquidations, including sale of KDB). On behalf of General Tire, the Washington law firm of Pierson & Ball last week was preparing applications for FCC approval, and expressed hope they would be ready (Continued on page 30) For August— PIB and within their category. Miles Labs was top investor. Toiletries & Toilet Goods producers ran third with purchases of $1,752,586, while Smoking Materials and Soaps, Polishes & Cleansers were fourth and fifth, respectively. * * * TOP TEN RADIO NETWORK ADVERTISERS FOR AUGUST 1950 1. Procter & Gamble $1,240,600 2. General Mills 853,178 3. Miles Labs 696,545 4. Sterling Drug 562,278 5. Philip Morris Co 426,324 6. General Foods 422,464 7. American Home Products ... 419,636 8. Liggett & Myers 388,625 9. Gillette Safety Razor Co. .. 337,817 10. Campbell Soup Co 283,129 TOP NETWORK ADVERTISERS FOR EACH PRODUCT Agriculture & Farming Ralston-Purina Co Apparel, Footwear & Acces Adam Hat Stores Automotive, Auto. Equip. & Supplies Chrysler Corp Aviation, Aviation Equip & Supplies Beer, Wine & Liquor Schenley Industries inc. .. BIdg. Mat., Equip. & Fixtures . .Johns-Monville Corp Confectionery & Soft Drinks ....Wm. H. Wrigley Jr. Co. .. Consumer Services American Tel. & Tel. Drugs & Remedies Miles Labs Entertainment & Amusements Food & Food Products General Mills Gasoline, Lubricants & Other Fuels Standard Oil of Indiana . . Horticulture Household Equip. & Supplies .... Gulf Oil Corp Household Furnishings Armstrong Cork Co $35,245 33,280 88,020 79,425 104,873 194,979 65,484 696,545 853,178 116,271 92,887 35,282 , GROUP IN AUGUST 1950 Industrial Materials U. S. Steel Insurance Prudential Jewelry, Optical Goods & Cameras OfRce Equip., Writing Supplies, Stationery & Acces. Eversharp Political Roosevelt for Gov. Comm. Publishing & Media First Church of Christ Scientist (Monitor) .... Radios, TV Sets, Phonographs, Musical Instruments & Acces Retail Stores & Direct Mail Dr. Hiss Smoking Materials Philip Morris Co Soaps, Polishes & Cleaners Procter & Gamble Sporting Goods & Toys Wilson Co Toiletries & Toilet G«ods Gillette Safety Razor Co. Transportation, Travel & Resorts .Assn. of Amer. Railroads Miscellaneoes Amer. Fed. of Labor .... 108,210 122,245 66,588 704 11,480 1,080 426,324 797,762 29,614 337,817 66,228 110,192 PRODUCT GROUP Agriculture & Farming & Access. $ Apparel, Footwear Automotive, Automotive Access. & Supplies Aviation, Aviaiion Equip. & Supplies Beer, Wine & Liquor BIdg. Materials, Equip & Fixtures Confectionery & Soft Drinks Drugs & Remedies Entertainment & Amusements Food & Food Products Gasoline, Lubricants & Other Fuels Horticulture Household Equip. & Supplies Household Furnishings GROSS AM NETWORK TIME SALES FOR AUG. AND JAN. -AUG. 1950— COMPARED TO 1949 BY PRODUCT GROUPS Jan.-Aug. Aug. 1949 1949 PRODUCT GROUP Jan.-Aug. Aug. 1950 1950 Jan.-Aug. Aug. 1950 1950 74,670 $ 685,266 76,571 816,906 297,040 3,591,555 $ 77,735 $ 753,939 70,858 860,282 335,050 4,918,751 115,209 1,729,549 104,873 893,783 318,982 4,629,071 1,896,578 16,673,928 475,045 3,426,152 105,696 302,252 2,213,029 39,320 327,244 106,884 664,875 108,167 873,685 382,971 4,486,429 1,610,752 13,641,100 3,052,005 29,636,959 2,689,605 29,271,412 376,017 3,978,699 91,968 273,676 4,905,825 37,054 733,112 Materials Insurance Jewelry, Optical Goods & Cameras OfRce Equip., Stationery & Writing Supplies Political Publishing & Media Radios. TV Sets, Phonographs, Musical Instruments & Access. Smoking Materials Soaps, Cleansers & Polishes Sporting Goocis & Toys Toiletries & Toilet Goods Transportation, Travel & Resorts Miscellaneous Total 124,323 232,036 66,588 704 11,480 66,228 357,538 1,382,682 1,918,397 960,708 964,018 24,408 594,423 613,803 1,562,090 15,517,816 1,433,312 13,557,928 29,614 29,614 1,725,538 16,673,928 585,783 3,467,778 Jan.-Aug. Aug. 1949 1949 123,845 1,430,031 279,202 ^,608,739 141,142 1,429,298 862,380 44,407 577,066 731,545 1,738,462 15,434,010 1,254,985 13,121,792 62,774 62,774 1,935,220 19,681,506 89,010 783,428 220,619 1,860,327 $12,561,675 $121,861,900 $12,164,974 $125,027,864 Nf nVORff GROSS UP BROADCASTING • Telecasting October 30, 1950 • Page 21