You will be redirected back to your article in seconds

Paxson, Diller shop & swap TV outlets

Mutual back-scratching in Atlanta

MIAMI — Bud Paxson and Barry Diller, both trying to muscle in on the broadcast market, are scratching each other’s backs in Atlanta.

Financial terms of the deal were not disclosed, but Paxson Communications Corp. will sell its interest in Atlanta station WNGM to USA Broadcasting, giving USA a foothold in the nation’s 10th-largest TV market.

Paxson currently operates WNGM via a time-brokerage agreement with Whitehead Media, from whom it also has an option to buy. Paxson will retain its wholly owned Atlanta outlet WPXA.

As part of the deal with USA, Paxson will acquire another station, KBSP in Portland, Oregon, from Blackstar LLC, in which Diller’s company owns a minority stake. In turn, USA plans to buy up the rest of Blackstar, putting Blackstar’s stations in Orlando, Fla., and Rapid City, S.D., under the USA banner.

Finally, sources said the multi-pronged deal between Paxson and USA involves Paxson getting an early release from long-term affiliation agreements with Diller’s Home Shopping Network for Paxson’s stations in New Orleans and Memphis, Tenn.

For USA, the acquisition of a station in Orlando is key because it extends the company’s reach throughout central and south Florida. USA is gearing up for the spring rollout of a new locally oriented CityVision programming format on its Miami outlet; USA already owns a station in Tampa.

USA also has set a goal of establishing a foothold in all top 10 markets. With Atlanta in the bag, Detroit is the only city in the top 10 where USA does not have any station holdings.

Paxson benefits from the deal by gaining a presence in Portland, the 24th-ranked TV market, for the family-oriented PaxNet web set to bow in late August.

“Portland is one of the nation’s fastest-growing markets and is a key outlet in PaxNet’s national TV distribution chain,” Paxson said.

Counting transactions awaiting completion, West Palm Beach, Fla.-based Paxson has 78 stations across 75 markets, including 42 of the top 50 markets.

More Biz

  • Arista Records, Mogul Vision Launch Joint

    Arista Records, Mogul Vision Launch Joint Venture

    Arista Records and Smokepurpp/ Lil Mosey manager Josh Marshall today announced the launch of Mogul Vision Music, a new joint venture label focused on “breaking extraordinary talent and building artist careers through innovative A&R, branding and marketing strategy,” according to the announcement. Based in New York with Marshall (pictured above left, with Massey) as its CEO, the [...]

  • Jussie Smollett

    Jussie Smollett Faces Prison, Career Ruin if He Lied About Attack

    Jussie Smollett is facing prison time and the implosion of his career if it turns out he lied about being the target of a hate crime, legal and public relations experts say. “The best thing that Jussie can do is pray and pray a lot,” said Ronn Torossian, founder of 5W Public Relations. “If he [...]

  • Gerrit Meier Variety Strictly Business Podcast

    Listen: Red Bull Practically Invented Branded Entertainment. What's Next?

    With memorable moves like sponsoring Felix Baumgartner’s jump from outer space in 2012 to achieve the world’s farthest ever-parachute drop, Red Bull has been a pioneering force in branded entertainment. While known best for its line of energy drinks, the beverage maker has eschewed traditional marketing for content that blurred the boundaries between advertising and [...]

  • Martin Bandier to Be Honored at

    Martin Bandier to Be Honored at Songwriters Hall of Fame Ceremony

    Martin Bandier, outgoing chairman and CEO of Sony/ATV Music Publishing, will be awarded the Visionary Leadership Award at the 50 th Annual Songwriters Hall of Fame Induction and Awards Dinner. The ceremony will take place on Thursday, June 13 at the Marriott Marquis Hotel in New York City. According to the announcement, the Visionary Leadership Award “acknowledges a member of the Songwriters Hall of Fame Board [...]

  • Hong Kong Disneyland Remains in the

    Hong Kong Disneyland Remains in the Red but Reduces Losses

    The Hong Kong Disneyland Resort theme park remained in the red for the fourth straight year, but there are signs of improvement. For the financial year to end-September 2018, HKDL reported $769 million (HK$6 billion) of revenue from 6.7 million visitors, an increase of 8%. Net losses fell from $32 million (HK$291 million) to $6.92 [...]

  • Lisa Borders Time's Up

    Time's Up President Lisa Borders Resigns

    Lisa Borders has resigned as president of Time’s Up, she and the organization announced on Monday. Borders is resigning due to family issues, she said in a statement. Time’s Up COO Rebecca Goldman will now serve as interim CEO. “As Time’s Up continues to grow, I am proud of the work I have done to [...]

  • Jussie Smollett Good Morning America

    Jussie Smollett Angrily Denies Complicity in Attack

    Attorneys for “Empire” actor Jussie Smollett issued a statement Saturday denying that he orchestrated his Jan. 29 assault, and saying he is “angered” and “devastated” by recent developments in the case. Chicago police want to interview Smollett, after learning new evidence from two Nigerian brothers who were released on Friday night. Local media outlets have [...]

More From Our Brands

Access exclusive content