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Re: NBC/Paxson

Read the press release carefully : "strategic investment" basically means that
NBC is trying to leverage itself  up against some of its bigger affils(including Sunbeam's
7 in Boston) most of which have been mighty unhappy with the Peacock network for the past 2 years. If you read any of the recent Variety or Broadcasting/Cable articles about a decreasing # of local avails during  network progamming and continued slashing of network compensation payments, you'll understand that affil relations are their lowest point ever and
the situation is not a happy one. NBC's revenue-generating moves are hitting a good number of affil owners in a pocket and they're ready to jump when their deals are up. By buying into Paxson, GE secures the distribution arm for NBC show in key markets in case existing affil decide to walk...GE can't afford any disruption in NBC's programming distribution so it's ready to play hardball with
station owners....

- ---
Bill Decker
Media Consultant

On Thu, 16 Sep 1999 09:39:49   brouder wrote:
>According to the AP this morning (8:25AM), NBC will pay $415 million for
>a 32% share of Paxson Communications.
>AP speculates that NBC might then be in a position to provide programming
>to Paxson's 72 TV stations.

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