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Change in Network Ownership Should Go Unnoticed By Viewers, Company Says

Posted on: Friday, 26 August 2005, 21:00 CDT

Aug. 26--Wilmington's two most-watched network-affiliated television stations will be owned by one company by year's end, but company officials say the change should go unnoticed by their viewers.

Media law experts, however, say there could be noticeable changes later on because of government regulations of the broadcasting industry.

Montgomery, Ala.-based Raycom Media, which owns NBC-affiliated WECT, announced on Thursday its takeover of the Greenville, S.C.-based Liberty Corporation, which owns ABC-affiliated WWAY.

Raycom will pay $47.35 per share for Liberty's stock, for an estimated $987 million, according to a statement issued Thursday. Employees at Liberty's headquarters are expected to be laid off, but employees of WWAY in Wilmington are expected to stay on -- at least for now. Raycom currently owns 37 television stations nationwide, most of which -- like WECT -- are affiliated with major networks. Paul McTear, president and CEO of Raycom, issued a statement in which he called the buy a "terrific opportunity."

"Our merger with Liberty Corporation allows us to take an exciting and logical next step into an exceptionally attractive group of markets," said Mr. McTear, who noted that Raycom is an employee-owned company.

Marty Edelman, a Raycom vice president, said in a telephone interview that he could not say for certain what changes are in store.

"This transaction probably will not close until the end of this year, or the first quarter," Mr. Edelman said. "We don't know what we are going to do."

He expressed confidence that the company would be able to meet Federal Communications Commission requirements regarding owners of broadcast outlets. The agency frowns on one company owning two information media outlets in the same market, because that cuts down on the diversity of opinion to which viewers may be exposed.

Hayne Hipp, chairman and CEO of Liberty, said he is pleased that Raycom shares what he called similar values and a culture with his company. In a letter to employees, Mr. Hipp said Raycom representatives will begin visiting Liberty stations -- including WWAY.

FCC requirements concerning television station ownership requirements are complex, said Lincoln Bandlow, associate professor of media and communication law at the University of Southern California's Annenberg Center for Communication.

"There are all kinds of limitations on how many stations and newspapers you can own in one area because they want to have diversity of ownership so that different messages can get out there," Mr. Bandlow said. "If you have too many in a particular area, you can get a waiver from those requirements."

Mr. Edelman said he expects his company to seek such a waiver. One potential could be divesting -- or selling-off -- of WWAY after it becomes part of the Raycom stable. Raycom could also choose to continue having news and editorial product on one station, but not on the other. Raycom currently has one such situation -- referred to as a duopoly--in an Ohio market. Only one station does news and local content in that case, Mr. Edelman said.

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LC,

Source: Morning Star

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