Re: Record Price for a TV Station

[Mark Shneyder <bostonradio@yahoo.com>]

--- PUBLICREF3 <norwood@mln.lib.ma.us> wrote:

> Additionally, I believe that were NBC to buy WHDH,
> I think the relaxed FCC rules wil allow them to keep WJAR.


The relaxed limits have nothing to do with neighboring
markets. I seriously doubt FCC would even make a case
that 'HDH and  WJAR are operating in the overlapping
market. The only obstacle that GE/NBC would need to worry about
in buying 'HDH would to make sure that
its o+o stations don't reach more 35% of nation's 
audience. The 35% cap was not relaxed by the new
FCC regulations announced in August. 

The FCC now requires that at least eight independently
owned television stations remain in a market
after the last combo/duopoly deal is done. Also,
the top 4 rated stations in the markets must be independently
owned(ie, Ch.7 and Ch.5 are not allowed to be under
the same owner). In cases where there are more
applicants for duopolies than the market allows, 
the FCC will decide which deals may close by lottery. 
Based on Tuesday's filings with the FCC, Ch.4
and 38 stand to be Boston's only duopoly(CBS/Viacom
is seeking duopolies in 6 markets -- Philadelphia,
Boston, Dallas, Detroit, Miami and Pittsburgh). However,
CBS was already bumping against the 35% cap even
before the September deal with Viacom was announced.
Now, Mel and Sumner are seeking a 2-year waiver from
the FCC. I think they'll probably get away with it
(there are rumors that they might put a CBS
radio station on the block in each one of those
markets in return). In my opinion, the new TV duopoly
model that FCC came up with is totally unworkable.

> This might be a time for Ed Ansin to cash out--not just by selling WHDH
> to NBC, but by selling WSVN Miami to Fox. I'd suspect WSVN is worth $
> 600 million.
 
If Ansin was to cash out in Boston, it would
probably be to News Corp before NBC. NBC/GE has already
invested into Paxson stations (32% ownership). 
And if in a few years, Ansin and NBC
can't agree on the next affil deal, Ch.68 would
surely carry the NBC logo...

Who knows?! The bottom line, everyone's talking to
everyone right now. There will be more deals when
all is said and done...

Mark 
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