Broadcasting Telecasting (Jul-Sep 1956)

BROApGftSTING TELECASTING August 27, 1956 Vol. 51, No. 9 $16 MILLION STATION SALES SIGNED OR BREWING IN WEEK • Whitney buys McConnell Indiana string for $10 million • Sale of WIND for record radio price is in negotiation © Evansville uhf may bring $820,000 from Cincinnati group STATION transfers — radio and tv — involving $16 million and pushing prices to new levels were completed or in the discussion stage at the weekend. Largest deal involved the McConnell radio-tv properties in Indianapolis (WISH-AM-TV) and Fort Wayne (WANE-WINT [TV]). Papers were signed late in the week calling for transfer of the properties to J. H. Whitney & Co., New York investment firm, for $10 million, one of the largest transactions in industry history [Closed Circuit, July 23, et seq]. An alltime record for a radio station sale appeared to be well along toward the signature stage Thursday as Westinghouse Broadcasting Co., figure in a number of major deals, was talking in terms of $5.3 million to Ralph Atlass and other owners of WIND Chicago. Others, too, were negotiating for WIND. Also in the negotiation stage was the sale of WEHT (TV) Evansville, Ind., uhf outlet, to a Cincinnati group for $820,000. Conversations were still under way Friday morning in Memphis. Among names mentioned as possible members of the proposed purchasing group were Henry Hilberg, Cincinnati capitalist, and Hulbert Taft Jr., president of WKRC-AM-TV Cincinnati. The $10 million McConnell-Whitney sale was announced jointly Friday by C. Bruce McConnell, president of Universal Broadcasting Co., owner-operator of the Indiana properties, and C. Wrede Petersmeyer, partner in J. H. Whitney & Co. FCC papers were formally filed late Friday by Haley, Doty & Wollenberg, Whitney counsel. Howard E. Stark, station broker, represented the buyer. The McConnell interests are represented by Segal, Smith & Hennessey. Mr. McConnell is majority Universal stockholder, with nearly 55% interest. Other sellers include Robert B. McConnell, vice presidentgeneral manager; Stokes Gresham Jr., chief engineer of the stations; Frank E. McKinney, active Democratic party worker; Earl H. Schmidt; Samuel R. and Dudley V. Sutphin; Luke Walton; Butler U., and P. R. Mallory & Co., Indianapolis electronic manufacturer. Transfer of ch. 15 WINT to Universal was approved by the FCC June 13. Selling the station at that time was Tri-State Television Inc., including R. Morris Pierce and John F. Patt (WJR Detroit), for $800,000. WINT is licensed to Waterloo, north of Fort Wayne. Mr. Petersmeyer is president of the 100%Whitney-owned Indiana Broadcasting Co., which will own and operate the Indiana properties. Robert B. McConnell continues as general manager of WISH-AM-TV. Directors of Indiana Broadcasting, besides Mr. Petersmeyer, are the two McConnells; Walter N. Thayer and Robert F. Bryan, Whitney partners; Howard Brundage, Whitney associate, and Messers. Gresham and McKinney. John Hay Whitney, brother-in-law of William S. Paley, CBS board chairman, is senior partner in the investment firm. C. Bruce McConnell said he expected "the fine traditions of broadcasting service established by Universal to be continued under the new ownership." Mr. Petersmeyer said, "Universal has an outstanding record of service to the people of Fort Wayne and Indiana. \\ e value highly the reputation enjoyed by Universal and plan to do everything possible to perpetuate the goodwill enjoyed by these Indiana stations. We are delighted to become a part of the rapidly growing Indiana market. The Whitney firm is vitally interested in the future of the television industry and believes these new properties together with those in Tulsa (KOTV [TV]) and Galveston-Houston (KGUL-TV) will complement one another and enable us to provide even better service to the people in all three areas." The Whitney firm assumed ownership of KGUL-TV Wednesday through its Lone Star Television Corp., which acquired 90% of the SALE contract for Universal Broadcasting Co.'s WISH-AM-TV Indianapolis and WANE-WINT (TV) Fort Wayne to J. H. Whitney & Co. is signed by principals: (L to r), seated, C. Wrede Petersmeyer, Whitney partner and president of KOTV (TV) Tulsa; C. Bruce McConnell, Universal president; standing, Robert McConnell, general manager of WISH-AM-TV, and Walter N. Thayer, Whitney partner. stock of the station. Paul E. Taft, president of Gulf Television Co., former owner, continues as president-general manager and owns 10% of Lone Star stock. The sale price was approximately $4.5 million. FCC approval was granted Aug. 13. Lone Star was expected to exercise Friday its option to buy the outstanding 10% stock of Gulf Television from Wesley west of Houston. KOTV is 90% owned by the Whitney organization, with Mr. Petersmeyer as president-general manager. The ch. 1 1 KGUL-TV is a basic CBS affiliate and recently completed a 1,200-foot tower between Houston and Galveston. Studios are maintained in both cities. WISH-AM-TV, WANE and WINT are CBS affiliates. The McConnells also control WHBU Anderson, Ind., not involved in the transaction. In purchasing WINT, Universal dropped a ch. 69 permit for WANE-TV Fort Wayne. WISH operates on 1310 kc with 5 kw D-l kw N. WISH-TV has 316 kw visual power on ch. 8. WANE is a 250 w outlet on 1450 kc. Ch. 15 WINT has 347 kw visual power, directional. Ail-Time Record The proposed $5.3 million price for WIND exceeds the previous record for a radio transfer— $4 million paid for WNEW New York by a group headed by Jack Wrather, Richard D. Buckley and John L. Loeb. Mr. Buckley and others had bought WNEW from the William S. Cherry interests in 1954 for $2.1 million. WIND is headed by Ralph L. Atlass, who owns 1,000 of 9,000 shares in WIND Inc., plus one-third of a voting trust of 2,670 shares that also includes Harriett Jane Atlass and H. Leslie Atlass Jr., treasurer. Other stock is held by Blanche W. Hagenah, 582 shares; Chicago Daily News, 2,500 shares; John T. Carey, vice president-secretary, 500 shares; Dorothy W. Rich, 582 shares; Helen A. Wrigley, 584 shares; William Wrigley, 582 shares, according to FCC records. WIND, originally in Gary, Ind., under the old FCC zone formula, was sold to the Atlass group in 1938 by Public Service Co. It was believed a sale of WIND to Westinghouse might involve payment in stock of the parent Westinghouse Electric Corp. This was the case in the Westinghouse purchase of KPIX (TV) San Francisco from Wesley Dumm in 1954 for $6 million. Westinghouse bought WDTV (TV) Pittsburgh from DuMont in early 1954, paying a record $9.75 million. Call letters were changed to KDKA-TV. WPTZ (TV) Philadelphia was bought by Westinghouse in 1953 from Philco Corp. for $8.5 million. WPTZ and KYW, WBC's Philadelphia radio outlet, were transferred last year to NBC in exchange for WTAM and WNBK (TV) Cleveland. In that exchange, Westinghouse received an additional $3 million. The KYW call letters were transferred to Cleveland and WNBK was redesignated KYW-TV, NBC Philadelphia became WRCV-AM-TV. WEHT is licensed to Henderson, Ky., across the Ohio River from Evansville. It is a CBSTV affiliate operating on ch. 50 with 11 kw visual power. Principal stockholder is Malco Theatres, also owner of WEOA Evansville. Herbert R. Levy is president and Cecil M. Sansbury general. manager of WEHT. Broadcasting • Telecasting August 27, 1955 • Page 27