re : Northeast Radio Watch : 6/11

[Mark Shneyder <mshbc@bu.edu>]

>From: fybush@world.std.com (Scott D Fybush)

>Boston's WBMX (98.5) to its existing Northeast presence in Boston
>(WBZ, WZLX, WODS, WBCN, WBZ-TV) and New York City (WCBS AM-FM, WINS,
>WNEW, WXRK, WFAN).  The rest of ARS' Boston-market properties (WEGQ,
>WAAF, WNFT) are in a trust awaiting sale; despite persistent rumors of
>a Jacor Boston buy, there's no oficial announcement of a buyer so far.

So far, CBS only placed WNFT into a trust. The other 4
properties (WRKO,WAAF,WEGQ and WEEI) stay in and keep making profit for
the CBS Radio Group until they are sold. Part of the DoJ settlement
included placement of at least *one* station into a trust in each market
where there are antitrust concerns. WNFT satisfied that condition in
Boston. It's kind of a moot move anyway since WNFT was initially placed
into the same trust back in February when CBS first proposed its antitrust
plan to DoJ.


Some nuggets from the FCC files....:


"13. CBS's acquisition of ARSC's stations in Boston, Baltimore, and San
Francisco-San Jose-Sacramento -- where it already has existing radio station
groups -- would exceed the local rules' numerical limitations. In the
applications associated with the merger, CBS stated its intent to come into
compliance with the local radio ownership rules prior to consummating the merger
insulated trusts for a limited six month period. In this regard, CBS stated that
it would actively pursue the sale of stations that must be divested to
minority-controlled entities, including those which would constitute new
entrants to broadcasting. The Minority Media and Telecommunications Council
("MMTC") would assist CBS in the search for minority-controlled buyers. CBS
pledges to ensure that these potential buyers are afforded a full and
fair opportunity to pursue and complete sale transactions for stations that must
be divested, including a reasonable amount of time to raise capital.

   14. All of the necessary applications for the sale of stations in Boston,
Baltimore and San Francisco-San Jose have not been filed. Accordingly, in order 
to facilitate its ability to consummate the merger, CBS proposes to come into
compliance with the local radio ownership rules by assigning to insulated trusts
stations in Boston, Baltimore and San Francisco-San Jose. To preserve the
insulation of the trusts, yet permit CBS to carry through on its commitment to
seek minority and new entrant buyers, CBS has filed an amendment to the transfer
of control applications stating that the trusts will direct the trustee to
pursue this course where the stations in trust are to be sold. Moreover, CBS
states that if stations held in trust are subsequently reassigned to the merged 
entity, CBS will honor the commitment to seek out minorities and new entrants to
the extent that these stations are subsequently sold by CBS. 

... 16. Based on our review of CBS's showing, we have determined that CBS's
proposed radio ownership in Boston complies with the local radio ownership
rules' numerical limits in all but one of the local radio markets in the chain. 
In this local radio market, the merged entity would control nine stations --
four AM and five FM -- all of which have mutually overlapping principal
community contours. These nine stations are: WBZ(AM), WRKO(AM), WEEI(AM),
 WNFT (AM), WODS(FM), WBCN(FM), WZLX(FM), WBMX(FM) and WEGQ(FM). Thus, the
proposed radio combination exceeds the overall ownership limitation of eight
stations applicable to this market of 45 or more radio stations. CBS has
proposed to divest itself of one station, either an AM or an FM, which would
bring it into compliance with the local radio ownership rules, but has not yet
filed an application to do so. Moreover, the radio combination in this market
includes three of the four Boston stations covered by the DOJ Settlement
Agreement -- WRKO(AM), WEEI(AM), and WEGQ(FM). Divestiture of any one of
the stations required by the DOJ Settlement Agreement would also bring the
merged entity into compliance with the Commission's local radio ownership
rules. CBS has filed an application to assign WNFT(AM) to the Boston License
Trust. CBS asserts that assignment of this station to the trust will bring the
merged entity into compliance with the Commission's rules, so that the merger
can be consummated. During the six month trust period, CBS will seek to sell the
stations it is required to divest by the DOJ.

23......Additionally, CBS and ARSC have specifically demonstrated the 
independence of the trustee, Bill Clark, an individual with no familial or
business relationships with ARSC or CBS. However, the trust applications
reveal that Mr. Clark is a member of the Broadcasting Management Committee
of the board of directors  of Latin Communications Group, Inc., which controls
stations in the San Jose area. Mr. Clark has pledged to resign his position
with LCG prior to consummation of the applications covering the stations in
the San Francisco/San Jose License Trust and the KOME Trust.

72. IT IS FURTHER ORDERED That, the application to assign the license of
WNFT (AM) from American Radio Systems License Corporation to The Boston License
Trust, Bill Clark, Trustee, File No. BAL-971224GW IS HEREBY GRANTED for a
temporary six month period. Any request to extend the temporary six month period
must be filed no later than 45 days prior to the expiration of the six month
period...."

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