Broadcasting Telecasting (Oct-Dec 1954)

BROADCASTING TELECASTING October 25, 1954 Vol. 47, No. 17 MAJOR PROPERTIES INVOLVED IN TV WHEELING AND DEALING Big deals are in the making as networks and multiple station interests try to get the most out of the FCCs newly liberalized ownership rules. Out of them will come — possibly within weeks— new lineups of network ownership and affiliation. CBS, with almost $8 million virtually jingling in its jeans, moved last week to close up the gaps caused by its relinquishment of minority ownership in three broadcast properties and its withdrawal from the Boston ch. 5 race. At the same time, rumors flew involving DuMont, the Pittsburgh chs. 4 and 1 1 hearings, and activities of major multiple broadcast owners in moving into new markets on the effective date of the FCCs new multiple ownership rule (Friday). • The Chicago ch. 2 situation, which promised to be a bitter, vigorously-contested affair, was settled to CBS' and Zenith's satisfaction when Zenith agreed to withdraw its competing application, leaving the CBS-owned WBBM-TV Chicago uncontested occupant of the vhf frequency. Terms provided that CBS would pay $575,000 for Zenith's ch. 2 transmitter and associated equipment, plus up to half the rental of Zenith's experimental station's quarters atop 135 S. LaSalle St., Chicago. In return, Zenith obligated itself to buy 25 weeks of a one-quarter segment of Omnibus beginning Oct. 24, at a time cost of approximately $40,000 per program, with CBS agreeing to reimburse Zenith for up to half of the time charges only. • Moving exactly on the date when the FCCs revised multiple ownership rule became effective permitting a single company to own up to seven tv stations (but only five in the vhf band), CBS on Friday announced its purchase of ch. 19 WOKY-TV Milwaukee. Purchase price was not given, but it is understood to be in the neighborhood of $335,000. The purchase is subject to the usual FCC approval. • Word was current last week that CBS also was negotiating for the purchase of ch. 9 WSTV-TV Steubenville, Ohio, only 33 miles from the rich and, until a year ago, singlestation Pittsburgh market. • CBS' withdrawal from the Boston ch. 5 hearing — in which five contestants still remain in hearing — was made, according to a Thursday statement by the network — because of the delay and expense which seemed certain to be involved, and also because it wanted to "remain flexible" in order to move in buying other stations. Meanwhile, other rumors of sales and mergers filled the air. Report that DuMont's three tv stations (New York, Pittsburgh and Washington) were being offered, or that DuMont had offered them, for approximately $20 million was current at week's end, but denied by DuMont. Merger of Pittsburgh ch. 4 applicants was reported imminent, with official announcement scheduled to be released tomorrow (Tuesday), it was learned. Hearst-owned WCAE Pittsburgh, it was understood, will remain the pending applicant, while the other four applicants will obtain options to purchase minor interests in WCAE Inc. or another corporation to be formed to run the tv station. These are KQV Pittsburgh, WLOA Braddock, Pa., and Wespen Tv Inc. (Scott Fink & Assoc.), and Irwin Community Tv (headed by Edward J. Hirshberg, whose interests include WEDO McKeesport and WACB Kittanning, Pa., and WEIR Weirton, W. Va.). Status of the second Pittsburgh hearing case was believed touch and go at the end of last week. Reports of merger were heavily discounted in some quarters, but persisted right up to the end of the week. Involved in the HOUSTON-GALVESTON BATTLE has flared up between KGUL-TV Galveston and KTRK-TV Houston — with CBSTV affiliation one of the principal issues. Earlier this month, KTRK-TV, which is building on ch. 13, protested to the FCC against the Commission's approval of KGUL-TV's ch. 1 1 transmitter move and higher antenna height, approved Sept. 1. KTRK-TV claimed that the Galveston station was moving closer to Houston so it could hold on to its CBS affiliation and sell Houston as well as Galveston advertisers. It claimed KGUL-TV was violating the allocation table and claimed Sec. 309(c) standing under the economic injury clause. KGUL-TV, in an opposition filed last week, urged the FCC to dismiss the KTRK-TV petition as having no standing. It alleged that the claims of economic injury by KTRK-TV were a "sham" and that the other allegations were based on "misrepresentations" and were "frivolous." It maintained that it was serving Houston with a Grade A signal before it moved its transmitter and hiked its antenna height and claimed that this was in line with the FCCs table of allocation. Pittsburgh ch. 11 hearing are KDKA (Westinghouse), WWSW and WIAS, all Pittsburgh. Although the way was opened Friday for major, multiple station owners to seek two additional stations in the uhf band, none other than CBS made its plans known last week. NBC was understood to be readying an announcement of applications in two "major" markets this week. Further technical details were understood to be required in these two instances. For some time, it was learned, NBC has had eight applications prepared pending the Oct. 22 effective date and final determination as to which two were to be filed [Closed Circuit, Oct. 18]. NBC owns vhf stations in New York, Chicago, Cleveland, Los Angeles and Washington. ABC was reported to be still studying the situation and has not made up its mind where to apply. ABC owns vhf stations in New York, Chicago, Detroit, Los Angeles and San Francisco. General Teleradio was mum on its plans; it owns vhf stations in New York, Boston, Los Angeles, Memphis and Hartford, Conn. (55%). Storer Awaits Approval Storer, the only other multiple owner who holds the maximum vhf number (Detroit, Toledo, Atlanta, Birmingham and San Antonio), was looking for FCC action this week on its nine-month-old application for the $8.5 million purchase of Empire Coil Co., owner of vhf WXEL (TV) Cleveland and uhf KPTV (TV) Portland, Ore. [B»T, Jan. 11]. It was also expecting the Commission to approve the $3.5 million sale of its KGBS-AM-TV San Antonio to the Huntress-San Antonio Express interests [B*T, April 12] and its $300,000 purchase of WJW Cleveland from William O'Neil [B«T, Oct. 11]. Although not bumping against the vhf limit of five, it was no secret that other multiple station owners were seriously canvassing the situation, both for vhf as well as uhf properties. These include DuMont, with three vhfs (New York, Pittsburgh, Washington) plus Paramount Pictures' KTLA (TV) Los Angeles charged against its ownership (DuMont is also a ch. 5 applicant in Boston); Westinghouse, with three vhfs in Boston, Philadelphia and San Francisco, and applications pending for Pittsburgh and Portland, Ore.; Scripps-Howard, with three vhfs in Cleveland, Cincinnati and Memphis and an applicant for Knoxville; Crosley, with four vhfs in Cincinnati, Dayton, Columbus and Atlanta, Ga., and an application for Indianapolis, and Meredith Publishing Co., with four vhfs in Kansas City, Phoenix, Omaha and Syracuse, N. Y. In the arrangement between CBS and Zenith for the Chicago ch. 2 frequency, it was declared that the $575,000 for Zenith's transmitter, antenna and associated transmitter and equipment was what Zenith had invested in the gear. The arrangement for CBS to sublease from Zenith up to no more than 50% of the total rent which Zenith is obligated to pay for the 45th floor penthouse and roof of 135 S. LaSalle Broadcasting • Telecasting October 25, 1954 • Page 27