Post-Newsweek To Unload TV Stations?

[DToTheJ]

With the news that the Washington Post is considering selling Newsweek, the weekly magazine that has been under its ownership for close to forty years, I wonder if the sale of their television stations is not too far behind. That is, the half-dozen television stations owned by Post-Newsweek Stations, Inc. All of them are VHF stations: Houston (KPRC), Detroit (WDIV), Miami (WPLG), Orlando (WKMG), San Antonio (KSAT) and Jacksonville, FL (WJXT); the latter of these stations is not affiliated with a major broadcast network.

Post-Newsweek had sold two other stations which had previously served as their flagship television stations: WTOP (now Gannett-owned WUSA) in Washington, and WFSB in Hartford. Their current flagship is WDIV in Detroit (this despite the fact that Houston is the larger DMA; not sure how that works). So they're no stranger to selling off some of their TV stations. The question is, any takers?

 

[1069_KIFR]

Young Broadcasting!

 

[JayR]

I wonder if the sale of their television stations is not too far behind. That is, the half-dozen television stations owned by Post-Newsweek Stations, Inc. All of them are VHF stations: ...Miami (WPLG),...

I'm skeptical about this "news"...

This is the same corporation that was ready to purchase WTVJ.

 

[azumanga]

One thing for certain: if Newsweek gets sold, you can bet that the name "Post-Newsweek Stations" will be changed, for obvious reasons.

 

[hintomedia]

Their current flagship is WDIV in Detroit (this despite the fact that Houston is the larger DMA; not sure how that works).

Detroit ranked higher until Houston overtook it a few years ago (around 2003-04?).

 

[mr.ric]

I wish NBC-Universal would buy KPRC. Comparing that station to NBC 5 in Dallas, you can really tell the difference in both the quality of news and regular programming (KPRC sucks, in my opinion).

 

[Tim-In-Houston]

Post-Newsweek had sold two other stations which had previously served as their flagship television stations: WTOP (now Gannett-owned WUSA) in Washington, and WFSB in Hartford. Their current flagship is WDIV in Detroit (this despite the fact that Houston is the larger DMA; not sure how that works). So they're no stranger to selling off some of their TV stations. The question is, any takers?

In her autobiography, the late Katherine Graham states that the reason The Washington Post Company sold off (or, in reality, swapped) WTOP/WUSA was because of the then impending case, before the Supreme Court in the late-70s, on television and newspaper cross-ownership. In the interim, TWPC and the then-owners of The Detroit News and WWJ-TV (now WDIV) decided to swap (another suitor considered was Houston's Hobby-owned KPRC, which of course they bought years later when the Hobby family sold off all their holdings)

The court eventually ruled that newspaper companies that had founded a tv station in the same market could keep it, but not before the WTOP/WWJ swap was completed. If it had gone the other way and the Grahams (who owned, and likely still own, nearly all Class-A voting stock in the company) had been forced to sell, they would have gotten significantly less for WTOP than the near-equal swap they made in anticipation.

 

[LKellerIII]

Post-Newsweek had sold two other stations which had previously served as their flagship television stations: WTOP (now Gannett-owned WUSA) in Washington, and WFSB in Hartford. Their current flagship is WDIV in Detroit (this despite the fact that Houston is the larger DMA; not sure how that works). So they're no stranger to selling off some of their TV stations. The question is, any takers?

In her autobiography, the late Katherine Graham states that the reason The Washington Post Company sold off (or, in reality, swapped) WTOP/WUSA was because of the then impending case, before the Supreme Court in the late-70s, on television and newspaper cross-ownership. In the interim, TWPC and the then-owners of The Detroit News and WWJ-TV (now WDIV) decided to swap (another suitor considered was Houston's Hobby-owned KPRC, which of course they bought years later when the Hobby family sold off all their holdings)

The court eventually ruled that newspaper companies that had founded a tv station in the same market could keep it, but not before the WTOP/WWJ swap was completed. If it had gone the other way and the Grahams (who owned, and likely still own, nearly all Class-A voting stock in the company) had been forced to sell, they would have gotten significantly less for WTOP than the near-equal swap they made in anticipation.

Good information! This would explain how San Francisco's Chronicle Corporation was able to hold onto KRON-TV (an NBC affiliate) while retaining ownership of the San Francisco Chronicle newspaper in the 70s, 80s, and 90s.

In 2001, the corporation (majority of stock owned by heirs of the founding De Young family) was able to sell KRON-TV to Young Broadcasting (no relation) for a record breaking $750m, and the newspaper to the Hearst Corporation for a huge profit. Both the newspaper and KRON-TV are now major money pits.

 

[Mediafrog+]

I wish NBC-Universal would buy KPRC. Comparing that station to NBC 5 in Dallas, you can really tell the difference in both the quality of news and regular programming (KPRC sucks, in my opinion).[

Problem: Comcast is buying NBC Universal, and Comcast is the major cable operator in Houston. Current rules would prohibit that crossownership.

Currently NBC-Universal owns Houston's Telemundo station, KTMD, which will likely be sold, unless a waiver is granted.

 

[Markxxx]

Their current flagship is WDIV in Detroit (this despite the fact that Houston is the larger DMA; not sure how that works).

Flagship Stations and such aren't always the largest. They are usually the largest but not always. Best example is WGN-TV is Tribune's Flagship station but Tribune has stations in NYC and LA that are in bigger markets.

In this economy it'd be interesting to see if anyone wants the stations. The best way to look at it would be if any other station in the market wanted a UHF for digital

 

[mescutia]

I wish NBC-Universal would buy KPRC. Comparing that station to NBC 5 in Dallas, you can really tell the difference in both the quality of news and regular programming (KPRC sucks, in my opinion).[

Problem: Comcast is buying NBC Universal, and Comcast is the major cable operator in Houston. Current rules would prohibit that crossownership.

Also, becoming an O&O doesn't necessarily mean a station's quality improves. I'm sure we can all think of stations that are doing better than they would be if they were owned by their respective networks.

And, really, I thought we were past the "This station is bad! [ABC/CBS/NBC] should buy it!" attitude that frequently popped up here in the past.

 

[Rollo-Smokes]

In her autobiography, the late Katherine Graham states that the reason The Washington Post Company sold off (or, in reality, swapped) WTOP/WUSA was because of the then impending case, before the Supreme Court in the late-70s, on television and newspaper cross-ownership...The court eventually ruled that newspaper companies that had founded a tv station in the same market could keep it, but not before the WTOP/WWJ swap was completed. If it had gone the other way and the Grahams (who owned, and likely still own, nearly all Class-A voting stock in the company) had been forced to sell, they would have gotten significantly less for WTOP than the near-equal swap they made in anticipation.

There's a simple phrase used to describe it: GRANDFATHER CLAUSE.

It is important to note that about ten years earlier (it must have been between 1968 and 1970), the FCC started to crackdown on companies owning both a newspaper and a broadcast facility in the same market or area. It wasn't until 1975 that the commission finally made the ban a law. The goal of the FCC was to keep the airwaves accessible without ownership being concentrated. Small markets were the main target, places where the only local paper owned one of the two or three TV stations and one or two (1 AM, 1 FM) of the ten radio stations.

In Washington, there were two such examples of newspaper-broadcast cross ownership. In addition to the Washington Post situation, the rival Washington Star owned WMAL radio, WMAL-FM and WMAL-TV. Joe Allbritton was perhaps under the same pressure Katherine Graham was to sell something, so he chose to keep his television station. WMAL AM-FM went to ABC in 1977, and the newspaper went to Time Inc. the following year.

I'd assume that both the Post and Star requested waivers of the rule, but either it was denied or they never asked for one. Not every company in a similar situation was forced to sell off one or the other. The newspaper-broadcast cross-ownership situations that were eventually protected by grandfather clause included:

* WGN, WGN-TV and the Chicago Tribune
WQXR, WQXR-FM, and the New York Times
WPIX-FM, WPIX [TV] and the New York Daily News
WBAL, WBAL-TV, WIYY and the Baltimore News-American
WMAR-TV, WMAR-FM and the Baltimore Sun
KRON-TV, KRON-FM and the San Francisco Chronicle
WCPO-TV and the Cincinnati Post
WEWS and the Cleveland Press
WMC, WMC-FM, WMC-TV and the Memphis Commercial Appeal
* WFAA-TV and the Dallas Morning News
* WHIO, WHIO-FM, WHIO-TV and the Dayton Daily News
* WSB, WSB-FM, WSB-TV and the Atlanta Journal-Constitution
* WBNS, WBNS-FM, WBNS-TV and the Columbus (O.) Dispatch
* WTMJ, WTMJ-TV and the Milwaukee Journal
KSD, KSD-FM, KSD-TV and the St. Louis Post-Dispatch
KTVI and the St. Louis Globe-Democrat
* WFLA, WFLA-FM, WFLA-TV and the Tampa Tribune
KPRC, KPRC-TV and the Houston Post
* KSL, KSL-FM, KSL-TV and the Deseret News
WHEC-TV and the Rochester (NY) Times-Union...

...just to name a few. The ones marked with asterisks are still (at least partially) in existence today.

 

[mr.ric]

Also, becoming an O&O doesn't necessarily mean a station's quality improves. I'm sure we can all think of stations that are doing better than they would be if they were owned by their respective networks.

And, really, I thought we were past the "This station is bad! [ABC/CBS/NBC] should buy it!" attitude that frequently popped up here in the past.

You must not live here in Houston, do you?

 

[intx]

You've clearly got a grudge against KPRC. What's so awful about them? To say KXAS has better programming is laughable. Martha Stewart, Deal or No Deal and Bonnie Hunt (KXAS) -- all dead after this season due to non-existent ratings -- are better than Dr. Oz, Rachael Ray and ET (KPRC)? Um, sure. KPRC also does way more news than KXAS. KXAS does, however, have higher news ratings. I will give you that. Look at the state of the NBC O&Os -- WNBC, in particular -- and see if you can honestly say they'd be a better owner.

Now back to our regularly scheduled programming: Ad revenue for Post-Newsweek Stations was up 20 percent in the first quarter, according to B&C, so I seriously doubt they'll be looking to sell any time soon. Newsweek and the Washington Post are the immediate concerns. Both are losing money.

 

[upstate29651]

I wish NBC-Universal would buy KPRC. Comparing that station to NBC 5 in Dallas, you can really tell the difference in both the quality of news and regular programming (KPRC sucks, in my opinion).

The Weather Channel.

Try again.

G

 

[Capemill]

I don't forsee Post-Newsweek selling their stations anytime soon, but if they were to, I would bet it would be to Hearst, Belo or Meredith.

If they sell to Hearst, they would have to sell WKMG. If they sell to Belo, they would have to sell KHOU and KENS. However if they sell to Meredith, they would have to sell none of their stations.

 

[Tim-In-Houston]

As long as their revenue is up, they will likely keep the stations...and with credit markets still rather tight the opportunities to buy and sell are few (obviously there are exceptions...the KIII-Corpus Christi sale for example) unless an owner is teetering on the edge of or already in bankruptcy (Young, Barrington, etc).

The problem with KPRC is for too long they were the tabloid and infotainment station in the market (I lived in Houston from '97 to '05 and for years referred to them as either "Useless 2 Houston" or "Infotainment 2 Houston") while KTRK, KHOU and to a lesser extent KRIV focused on real news instead. They blew their credibility and its hard gaining that back.

As an example: KPRC was the first (in the market and perhaps in the nation) to report the Ford Explorer/Firestone Tires (and here) story - at least two years before KHOU. But it was KHOU's report that lead to the recall.

 

[cowboybud]

You've clearly got a grudge against KPRC. What's so awful about them?

They've improved somewhat from the 90s-00s era of tabloid news and questionable programming decisions (airing Conan at 2:45am, pre-empting a NASCAR race for the Miss Texas pageant, etc). They still have yet to overcome that reputation, though. Personally, I don't watch Ch. 2 news at all (nor NBC except for football, hockey and occasionally The Office).

 

[lugnuts6]

someone said that WUSA9's newscasts have somewhat dumped their Gannet Co. copyright and replaced it with "Copyright 2010 The Detroit News Newspapers inc. "

can someone confirm this

 

[mr.ric]

You've clearly got a grudge against KPRC. What's so awful about them?

They've improved somewhat from the 90s-00s era of tabloid news and questionable programming decisions (airing Conan at 2:45am, pre-empting a NASCAR race for the Miss Texas pageant, etc).

KPRC's questionable programming throughout the years:

-airing Conan at 1:05am, then moving it to 12:35am, then finally moving it to its correct time, 11:35pm
-NOT airing Carson Daly until '05 or '06 when they finally started airing it, but at 2:05am, instead of 12:35am (its still on at 2, but since that show went downhill, i stopped watching)
-NOT airing Poker After Dark
-NOT airing the classic Saturday Night Live episodes that used to air around 1 or 2am on NBC.
-NOT airing those "Strikeforce" fights that air at 2am Saturday Nights.