Viacom International Inc. has agreed to trade two radio stations in Houston to Westinghouse Electric Corp. for two stations in Washington, D.C., and an undisclosed amount of cash, the companies said Thursday.
The deal illustrates how broadcasting companies are adjusting their portfolios in view of new Federal Communications Commission rules that permit them to own more than one AM and one FM radio station in a given market.
By assembling larger groups of stations in specific markets, a company presumably will be able to arrange more attractive advertising packages for companies seeking audiences in that area.
Viacom’s radio division will acquire the classic-rock station WCXR-FM and news station WCPT-AM in D.C., where it owns country stations WMZQ-AM and WMZQ-FM.
Westinghouse’s Group W Radio division gets KIKK-AM and KIKK-FM in Houston, where it already owns country music stations, KILT-AM and KILT-FM.
Viacom Radio owns 14 stations, while Group W Radio owns 16.