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Change Your Life! |
Rupert Murdoch strikes back! |
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News
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August 15, 2000
NEW YORK (AP) - Rupert Murdoch's News Corp. is acquiring Chris-Craft Industries Inc. and its 10 TV stations for dlrs 5.35 billion in cash and stock in a deal that bulks up News Corp.'s already powerful lineup. The deal announced Monday also raises questions about the future of the fledgling UPN television network in which Chris-Craft was until recently a half owner. Eight of the 10 TV stations being acquired by Fox TV network owner News Corp. carry the UPN network. News Corp. emerged as the victor for the Chris-Craft empire after rival Viacom Inc., which owns the CBS network, said Friday it had ended talks about buying Chris-Craft's TV stations. That news sent shares of Chris-Craft down 11 percent to dlrs 62 in trading on the New York Stock Exchange. Under the deal announced Monday, News Corp. is paying dlrs 2.13 billion in cash and dlrs 3.22 billion in stock for Chris-Craft and its affiliates, BHC Communications and United Television. The deal values Chris-Craft at dlrs 85 a share. Viacom and Chris-Craft jointly founded the UPN network five years ago but Viacom bought out the Chris-Craft stake in the UPN network several months ago and is now its sole owner. News Corp., a global media company that owns newspapers, magazines and a Hollywood movie and TV programming studio, greatly expands its holdings of 23 TV stations as a result of the deal. It conceded in making the announcement that it may be required to sell some stations to comply with federal regulations on station ownership. News Corp.'s Fox television business already reaches 35 percent of U.S. TV audiences, the maximum allowed by the government. Those rules, however, may change under heavy lobbying pressure from News Corp. and other major broadcasters. The Federal Communications Commission has loosened other rules on broadcasting but has so far left in place the 35 percent ownership cap. If successful, the deal would give News Corp. a second station in four major markets - New York, Los Angeles, Salt Lake City and Phoenix - on top of the two it already owns in Dallas. It will also give News Corp. 13 stations in the nation's 10 biggest markets. The other stations being acquired by News Corp. are in San Francisco, Minneapolis-St. Paul, Orlando, Florida, Portland, Oregon, Baltimore and San Antonio. All of the Chris-Craft stations but those in Salt Lake City and San Antonio carry UPN programming. Recent changes in federal rules enable a single owner to have two stations in major media markets under certain conditions. Owning two stations in a single market gives an owner more clout with advertisers. Assuming regulatory approval, the companies expect the deal to be completed by the end of June 2001. --- On the Net: http://www.chriscraft.net http://www.newscorp.com
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