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$1.13-billion purchase of six more TVs brings broadcaster into one-third of U.S. homes
Tribune Co.'s $1.13 billion cash purchase of Renaissance Communications will extend Tribune's reach into arguably more households than any other TV group owner.
Under the deal, which is subject to FCC and federal antitrust review, Tribune will acquire four Fox and two WB Network affiliates. Tribune's holdings will grow to 16 TVs that cover 33.374% of the nation's TV households. Including WBDC(TV) Washington, which Tribune has an option to acquire, that coverage would be 35.4%.
Whether Tribune is the top group depends on who's counting. The FCC lowers a group's reach by discounting the reach of UHFs by half. By the FCC's count-and by BROADCASTING & CABLE'S exclusive ranking of the top 25 TV groups-Tribune actually reaches 24.963% of U.S. households. Westinghouse/CBS wins in that category with 30.95% (see list, page 12).
By any measure, the advantage of wide household reach should pay off handsomely for Tribune's programing unit, Tribune Entertainment (see page 9). The deal, the biggest in company history, is "a great opportunity for us," says Jim Dowdle, Tribune's executive vice president/media operations. "It greatly enhances our distribution system and...we have much room to grow."
Likewise, there's plenty of room for programing on Tribune/Renaissance stations. All 17 are WB or Fox affiliates, except WGNX(TV) Atlanta, which is CBS, and WGNO(TV) New Orleans, which is ABC. Tribune has a 12.5% equity interest in the WB that could grow to 25%.
"Programing needs for WB and Fox stations are...