Television digest with electronics reports (Jan-Dec 1954)

3 within 3 ft. of set, detected no dots at all. If the production of such screens is practical, it's certainly worth doing. Evaluating whole color tube situation, one executive said; "The j\imp from radio to black-&-white TV was a much greater revolution in our business than will be the jump from black-&-white to color." He sees no need for the intermediate steps taken by monochrome — no such evolution as the progression through 7, SVz, 10, 12, 12}^, 14, 15, 16, 17, 19, 20, 21, 24, 27 & 30-in. sizes. However, the more conservative industry sources expect it will be some 2 years before mass production of rectangular 21-in. — the "ideal". Though there have been some pilot model metal-coned color tubes, virtually everyone is talking glass now. Interesting sidelight is that RCA, pioneer of metal tubes for black-&-white , gave them up about 6 months ago, and except for replacement is now making only glass black-&-white (as well as color). STORER BUYS EMPIRE COIL CO. FOR $10,000,000: Biggest deal since the ABC-UPT merger — topping any of the 20 major station sales of 1953 — is Storer Broadcasting Co.'s projected purchase of Herbert Mayer's Empire Coil Co. for approximately $10,000,000. Annoimced purchase price is $8,500,000, same sum Westinghouse paid Philco for WPTZ in Philadelphia last year (Vol. 9 ;8, 22) ; but Storer assumes liabilities of about $1,000,000 and Mayer will get about $500,000 more in adjustments. Deal embraces acquisition of big electronic parts manufacturer, major vendor of transformers & coils to many of the large TV-radio manufacturers, plus its TV stations WXEL, Cleveland (Ch. 8) and KPTV, Portland. Ore. (Ch. 27). It was closed at 4:16 a.m. Jan. 8, when Storer counsel John Poole and Mayer counsel Morton Wilner completed the agreement papers, and $350,000 cash deposit was paid. Agreement calls for $6.000,000 cash on FCC approval of transfers, balance in cash or notes — most likely cash. Broker Howard Stark, who engineered deal, is paid by Storer. No new stock sales are contemplated to raise funds. Mr. Mayer gave ill health as one of reasons for finally agreeing to sell after having rejected numerous offers, particularly for Cleveland station. Package deal offered certain tax advantages. Letter to staffs of WXEL & KPTV told them Storer has assured him he anticipates making no changes in personnel and that operation of the stations will continue substantially as before. * ♦ * ♦ There was no breakdown in values placed on the 3 properties, all of which are known to be substantial money makers, together last year grossing very nearly the amount of the announced purchase price. Cleveland station has been particularly profitable; Mayer has rejected offers of up to $5,000,000 for it. Portland uhf station, which he also founded, was first commercial uhf outlet to go on the air, has NBC basic affiliation, has been good earner from start, is probably the most profitable uhf station of all the 122 that have since started. Already owner of 5 stations, the hitherto allowable limit, Storer will have to dispose of at least one of them. Presumably it will be KGBS-TV, San Antonio (Ch. 5), recently known as KEYL, which he purchased in 1951 for $1,050,000 (Vol. 7 ;30,41) and which son George B. Storer Jr. now manages. Or it might be WAGA-TV. Atlanta (Ch. 5). Because FCC is waiving 5-limit rule to permit ownership of 2 uhf in addition to 5 vhf (Vol. 9:51), it's expected there will be no obstacle to ownership of Portland outlet which is often cited as the "showcase" of what uhf can accomplish, both technically and financially, if it gets a good head start. FCC is deeply committed to success of uhf, which many think requires network and other big-interest backing over long haul. That was why it authorized, within 48 hours of application, the transfer to DuMont Network Jan. 1 of Empire Coil's uhf KCTY, Kansas City (Vol. 9:52). * ♦ ♦ ♦ Now 46 years old, Herbert Mayer quit his New York law practice in 1944 to set up Empire Coil Co. with an investment of only $5000 and an assembly line in a loft in New Rochelle, N.Y. , where it now has a modern building. He wanted to get into electronics somehow, so boned up on what was most needed — deciding on components. Before the TV station freeze, he decided he wanted to go into telecasting.