Broadcasting Telecasting (Oct-Dec 1957)

at deadline BIGGEST STATION BUY IN HISTORY • business briefly • CBS pays $20 million for WCAU-AM-FM-TV, real estate • Acquisition brings network to limit in radio-television Sale of 50 kw clear channel WCAU, its fm adjunct, WCAU-FM, and ch. 10 WCAUTV by Philadelphia Bulletin to CBS for $20 million cash — largest price for single property in annals of broadcasting — was announced Friday. Total price breaks down to $3 million for radio stations, $12.6 million for tv outlet and $4.4 million for land, buildings and other real property comprising WCAU , Radio & Tv Center on City Line Ave., Philadelphia. Move, subject to usual FCC approval, returns WCAU to Paley family control after 1 1 years. Station was sold by Levy-Paley interests to Philadelphia Record in 1946, and bought by Philadelphia Bulletin from Record in 1947. Transaction looms head and shoulders over highest single purchase up to now — Westinghouse's $9.75 million for KDKATV Pittsburgh which it bought from Allen B. DuMont Labs in 1955. It is even greater than recent group purchases: J. H. Whitney Co.'s $10 million price in 1956 for Universal Broadcasting Co. stations (WISHAM-TV Indianapolis and WANE-AM-TV Fort Wayne), and Time Inc.'s $15.75 million purchase in 1957 of Consolidated (Bitner) properties (WFBM-AM-TV Indianapolis, WOOD-AM-TV Grand Rapids and WTCNAM-TV Minneapolis). Purchase brings CBS up to its maximum station ownership in both radio and tv. CBS already owns WCBS-AM-FM-TV New York, KNX-AM-FM and KNXT (TV) Los Angeles, WBBM-AM-FM-TV Chicago, KCBS-AM-FM San Francisco, KMOX-AM-TV St. Louis, WEEI-AM-FM Boston, WXIX (TV) Milwaukee, WHCT (TV) Hartford, Conn. Last two are uhf. CBS paid $3.6 million for what is now KNXT in 1950 when it bought ch. 2 station from Thomas S. Lee interests. It paid $6 million for what is now WBBM-TV Chicago in 1953 when it bought ch. 2 outlet from Balaban & Katz theatre chain. In October of this year CBS paid $4 million for ch. 4 KWK-TV St. Louis, after winning grant for ch. 1 1 in contest with three other applicants. Network turned over ch. 1 1 grant to unsuccessful contestants. In 1954, CBS bought ch. 19 WXIX (TV) Milwaukee for $350,000 from Bartell interests, and facilities of ch. 25 WCAN-TV for $650,000 from Lou Poller. In 1956, network paid $650,000 for ch. 18 WHCT (TV) Hartford, bought from General Times Tv Corp. Announcement of WCAU-AM-FM-TV sale said no change in management or per Broadcasting sonnel planned by new owner. Donald W. Thornburgh took over helm of WCAU stations in 1949, coming east from vice presidency of CBS West Coast operations to be president and general manager of WCAU Inc. WCAU began operating in 1922 and is 50 kw on 1210 kc. WCAU-FM, begun in 1941, operates with 10 kw on 98.1 mc. WCAU-TV on ch. 10 began operating in 1948. All are CBS affiliates. WCAU was CBS's first radio affiliate, in 1927, and WCAU-TV network's first tv affiliate, in 1948. Not included in sale is Bulletin's 75% ownership of voting stock of ch. 22 WDAUTV Scranton, Pa. Bulletin paid $650,000 for this interest in 1956. Bulletin's Muzak franchise is also not involved. WCAU Radio & Tv Centre— on City Line and Monument Aves., six miles from downtown Philadelphia on Main Line expressway— was built in 1952. Centre, occupying eight acres, was $3.5 million project. WCAU-AM-FM was sold to Philadelphia Record (J. David Stern) in 1946 (gross figure of $6 million, with $2.15 million as stripped price) by group including Dr. Leon and Isaac D. Levy, William S. Paley, CBS board chairman, and his father, Samuel Paley, who had bought it in 1925. In 1947 Bulletin bought Mr. Stern's Camden (N. J.) Courier-Post and Philadelphia Record, with stripped down price for WCAU-AM-FM of $2.9 million. Bulletin sold its WPEN to Sun-Ray Drug Co. for $800,000. Philadelphia Bulletin is owned by McLean family and has daily circulation of over 750,000. Robert McLean is presidentpublisher of evening newspaper. RAB TO PROVE RADIO Radio's impact is slated to be demonstrated immediately after Jan. 1 by Radio Advertising Bureau in a new series of "awareness tests," RAB Vice President Sherril Taylor said Friday. Tests — ranging from one to 13 weeks and utilizing multiple-station markets — will involve advertising of specific product unavailable in market. Radio will be only means public will hear about item. Recall statistics will underscore RAB contention that radio stimulates "high degree of memorability" and will provide bureau with additional facts concerning audience structure and merits of different degrees of saturation. Late-breaking items about broadcast business; for earlier news, see Advertisers & Agencies, page 32. SOAP SPOTTING • Lever Bros., N. Y., planning four six-week flights of radio spot announcements, starting Jan. 13 in number of markets promoting Silver Dust Blue (soap). Sullivan, Stauffer, Colwell & Bayles, N. Y., is agency. CHANGES TO 'RAINBOW' • Ralph Edwards' newest show, End of the Rainbow, Jan. 1 1 replaces What's It For? in Saturday 10-10:30 p.m. EST spot on NBC-TV, sponsored by Pharmaceuticals Inc., Newark, N. J., through Parkson Agency, N. Y. NEWS FOR NESTLE • Nestle Co., White Plains, N. Y., planning to sponsor quarterhour news show on NBC-TV (Thurs., 6:457 p.m. EST), starting in mid-January. Show will promote all Nestle products. Agency: Dancer-Fitzgerald-Sample, N. Y. BREWERY PICKS C&H • Stagmaier Brewing Co., Wilkes-Barre, Pa., has appointed Calkins & Holden, N. Y., as agency with Robert D. Morgan as account supervisor. Sun Oil Appoints Esty William Esty Co., New York, Friday gained about $3 million in billings as Sun Oil Co. appointed agency to handle its motor products advertising in U.S. Sun Oil had been talking to several agencies [At Deadline, Dec. 16]. Approximately one-third of account is in regional radiotv. Included in move is Sunoco gasoline and oil. Erwin, Wasey, Ruthrauff & Ryan, which handled account, retains Sun Oil's industrial products, and Tandy Adv., Toronto, continues on Canadian advertising. With new account, Esty's total billings will come up to about $75 million and agency will pick up about one-quarter of approximate $4 million broadcast billing it was off this year compared to last. Broadcast billing now is figured at approximately $37 million. WLBR-TV to Join ABC-TV WLBR-TV Lebanon, Pa., becomes primary affiliate of ABC-TV Jan. 5, it was announced ' Friday. WLBR-TV, heretofore independent, is 82nd on-air primary affiliate for network, ABC-TV said. Other Triangle stations having ABC-TV affiliations include WFIL-TV Philadelphia, WNHC-TV New Haven, Conn., WNBF-TV Binghamton, N. Y., and WFBG-TV Altoona, Pa. December 23. 1957 Page 9