Capital Cities/ABC
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Capital Cities/ABC Inc. was an American media company. It was founded in 1985 when Capital Cities Communications purchased the much larger American Broadcasting Company. It was eventually acquired by The Walt Disney Company and re-branded itself as Disney–ABC Television Group (now Disney General Entertainment Content) in 1996.
History
Origins
Capital Cities/ABC Inc. origins trace back in 1946, when Hyman Rosenblum (1911–1996), a local
The Capital Cities era
In 1956, WROW-TV moved from channel 41 to channel 10 and became WCDA. In 1957, Hudson Valley Broadcasting merged with Durham Broadcasting Enterprises, the owners of WTVD television in Durham, North Carolina.[3] The new company took the name Capital Cities Television Corporation in November 1957,[2] as both WROW/WCDA (now WTEN) and WTVD served the capital regions of their respective states. Capital Cities then began purchasing stations, starting with WPRO-AM-FM-TV in Providence, Rhode Island (another capital city) in 1959.[4] In December 1959, the company's name was changed to Capital Cities Broadcasting.[2]
During the 1960s, Capital Cities' holdings grew with the separate 1961 purchases of
In 1968, Capital Cities entered the publishing business by acquiring
The following year, the company made another big purchase—acquiring WFIL-
In 1974, Capital Cities bought
In 1977, the company was a lead plaintiff in a lawsuit by the owners of Buffalo-based TV stations against the Canadian Radio-television and Telecommunications Commission over that country's simultaneous substitution rules. The Supreme Court of Canada ruled against the broadcasters. From 1978 to 1985, just before it bought ABC, Capital Cities Communications produced a series of family specials distributed through its syndicated unit.[21]
Returning to broadcasting, WBIE-FM (now
Capital Cities/ABC
On March 19, 1985, Capital Cities announced that it would purchase ABC for $3.5 billion, which shocked the media industry, as ABC was some four times bigger than Capital Cities was at the time. Berkshire Hathaway chairman Warren Buffett helped to finance the deal in exchange for a 25 percent share in the combined company.[26][27] The deal was, at the time, the largest non-oil merger in world business history.[28] However, this record would be surpassed by year's end by the merger of General Electric and RCA (the latter company then being the parent company of rival network NBC).[29]
The newly merged company, known as Capital Cities/ABC[2] (or CapCities/ABC), was forced to sell off some stations due to FCC ownership limits. Between them, ABC and CapCities owned more television stations than FCC rules allowed at the time. Also, the two companies owned several radio stations in the same markets.[30] Of the former Capital Cities television stations, the new company opted to keep the outlets in Philadelphia, Houston, Durham, and Fresno. WFTS and ABC's WXYZ-TV in Detroit were divested as a pair to the E. W. Scripps Company's broadcasting division (then known as Scripps-Howard Broadcasting). WTNH and WKBW-TV were sold separately to minority-owned companies;[31] WKBW-TV would eventually be acquired by E.W. Scripps by 2014. WTNH would have been sold in any event due to a significant signal overlap with ABC flagship WABC-TV in New York City. At the time, the FCC normally did not allow companies to own two television stations with common coverage areas (known commonly as the "one-to-a-market" rule), and would not even consider granting a waiver for a city-grade overlap.
The merged company could have been forced to sell off WPVI as well due to a large Grade B signal overlap with WABC-TV. Citing CBS' ownership of television stations in New York City (WCBS-TV) and Philadelphia (at the time WCAU-TV) under grandfathered status, Capital Cities/ABC requested, and was granted a permanent waiver from the FCC allowing it to keep WPVI-TV. Had the waiver request been denied, WXYZ-TV would have been retained.
WPVI-TV and KTRK-TV had long been ABC affiliates (in fact, two of ABC's strongest affiliates), while WTVD and KFSN-TV, longtime CBS affiliates, respectively switched to ABC in August and September 1985.
On the radio side, new owners were found for CapCities' WPAT stations (Park Communications was the buyer), WKBW (Price Communications, the new owner, changed its call letters to WWKB, which was necessitated due to an FCC regulation in effect then that forbade TV and radio stations in the same city, but with different owners from sharing the same call letters) and KLAC and KZLA-FM (to Malrite Communications), and ABC's WRIF-FM in Detroit (to a minority-owned concern), among others.[32]
The merger was completed on January 3, 1986. Capital Cities/ABC retained ABC's radio and television combinations in New York City (WABC, WABC-TV and WPLJ), Los Angeles (KABC, KABC-TV and KLOS), Chicago (WLS, WLS-FM and WLS-TV), and San Francisco (KGO and KGO-TV), along with WMAL and WRQX-FM in Washington, D.C.; CapCities' aforementioned television outlets and the Detroit, Providence, Marietta and Fort Worth radio stations; Fairchild Publications; the Fort Worth Star-Telegram and the Kansas City Star; and other broadcasting and publishing properties.[12] Orbis Communications immediately purchased the syndication rights to the Capital Cities production library.[33] The library was then leased to pay cable channel HBO for two years for its Family Specials library of 26 titles.[34]
In May 1991, Capital Cities/ABC's Farm Progress Cos. closed its purchase of
In 1994, CC/ABC agreed to a $200 million seven-year television production joint venture with the original DreamWorks live-action studio.[45] Also that year, CC/ABC formed a partnership with Brillstein/Grey Entertainment to launch Brillstein/Grey Communications.[46]
Structure at Disney acquisition
- ABC Television Network Group
- ABC News
- ABC Sports
- ABC Entertainment
- ABC Daytime
- ABC Children's Programming
- CC/ABC Broadcasting Group
- ABC Radio Network
- eight TV stations
- 21 radio stations
- ABC Cable and International Broadcast Group
- ESPN Inc. (80%)
- Eurosport (33.3%, England)
- TV Sport (10%, France; Eurosport affiliate)
- The Japan Sports Channel (20%)
- A&E Television Networks(37.5%)
- Lifetime Television (50%)
- Tele-Muchen (50%, Germany)
- RTL2 20%
- Hamster Productions (33%, France)
- ESPN Inc. (80%)
- DIC Entertainment (Limited Partnerships with Andy Heyward)
- DIC Entertainment, L.P. (100%)
- DIC Productions, L.P. (95%)
- Scandinavian Broadcasting System(23%, Luxembourg)
- CC/ABC Publishing Group
- Fairchild Publications
- Chilton Publications
- multiple newspapers from a dozen dailies and more weeklies
- dozens more publications in the fields of business and law trade journals
- Farm Progress
- Los Angeles Magazine
- Institutional Investor
- CC/ABC Multimedia Group[50]
- Creative Wonders (Joint-venture with Electronic Arts)
Former Capital Cities-owned stations
Stations are listed alphabetically by state and city of license.
Notes:
- (**) – indicates a station built and signed on by a predecessor company of Capital Cities.
Television stations
City of license / Market | Station |
|
Current ownership status | |
---|---|---|---|---|
Fresno, CA-Visalia, CA | KFSN-TV | 30 (30) | 1971–1986 | ABC owned-and-operated (O&O) |
New Haven–Hartford, CT | WTNH-TV | 8 (10) | 1971–1986 | ABC affiliate owned by Nexstar Media Group |
Tampa–St. Petersburg, FL | WFTS-TV | 28 (29) | 1984–1986 | ABC affiliate owned by the E. W. Scripps Company |
Flint–Saginaw–Bay City, MI | WJRT-TV | 12 (12) | 1964 | ABC affiliate owned by Allen Media Broadcasting
|
Albany–Schenectady–Troy, NY | WROW-TV/WCDA/WTEN** | 10 (26) | 1953–1971 | ABC affiliate owned by Nexstar Media Group |
Buffalo, NY | WKBW-TV | 7 (38) | 1961–1986 | ABC affiliate owned by the E. W. Scripps Company |
Durham–Raleigh–Fayetteville, NC | WTVD** | 11 (11) | 1957–1986 | ABC owned-and-operated (O&O) |
Philadelphia, PA | WPVI-TV | 6 (6) | 1971–1986 | ABC owned-and-operated (O&O) |
Providence, RI–New Bedford, MA | WPRO-TV | 12 (13) | 1959–1967 | CBS affiliate, WPRI-TV, owned by Nexstar Media Group |
Houston, TX | KTRK-TV | 13 (13) | 1967–1986 | ABC owned-and-operated (O&O) |
Huntington–Charleston, WV | WSAZ-TV | 3 (23) | 1964–1971 | NBC affiliate owned by Gray Television |
- This list does not include WTVG in Toledo, Ohio. That station, which switched its affiliation from NBC to ABC, was purchased by Capital Cities/ABC in 1995, and was completed just before Disney's acquisition of the combined group was finalized. In addition, WJRT-TV was reacquired in the same deal.
Radio stations
AM Station | FM Station |
---|
City of license / Market | Station | Years owned | Current ownership |
---|---|---|---|
Los Angeles, CA | KPOL/KZLA 1540 | 1966–1984 | KMPC, owned by P&Y Broadcasting Licensee, LLC |
KLAC 570 | 1984–1986 | Owned by iHeartMedia | |
KPOL-FM/KZLA-FM 93.9 | 1966–1986 | KXOS, owned by 93.9 Holdings | |
Atlanta–Marietta, GA | WKHX 590 | 1985–1986 | WDWD, owned by Salem Media Group |
WKHX-FM 101.5 | 1981–1986 | Owned by Cumulus Media | |
Detroit, MI | WJR 760 | 1964–1986 | Owned by Cumulus Media |
WJR-FM/WHYT 96.3 | 1964–1986 | WDVD, owned by Cumulus Media | |
Paterson, NJ–New York City, NY | WPAT 930 | 1961–1985 | Owned by Multicultural Broadcasting |
WPAT-FM 93.1 | 1961–1985 | Owned by Spanish Broadcasting System | |
Albany–Schenectady–Troy, NY | WROW 590 | 1947–1983 | Owned by Pamal Broadcasting |
WROW-FM 95.5** | 1966–1983 | WYJB, owned by Pamal Broadcasting | |
Buffalo, NY | WKBW 1520 | 1961–1986 | WWKB, owned by Audacy, Inc. |
Providence–Warwick, RI | WPRO 630 | 1959–1986 | Owned by Cumulus Media |
WPRO-FM 92.3 | 1959–1986 | Owned by Cumulus Media | |
Fort Worth–Dallas, TX | WBAP 820 | 1974–1986 | Owned by Cumulus Media |
KSCS 96.3 | 1974–1986 | Owned by Cumulus Media | |
Huntington, WV–Ashland, KY | WSAZ 930 | 1964–1970 | WRVC, owned by Fifth Avenue Broadcasting Company |
- All stations currently under ownership of Cumulus Media were previously owned by Citadel Broadcasting before Cumulus acquired the company on September 16, 2011. Most of these same stations were owned by the Walt Disney Company until Citadel's purchase of ABC Radio Networks and these stations on June 12, 2007 (except for WPRO-AM-FM, which were sold by Capital Cities/ABC in 1993 and acquired by Citadel in 1997).
Financial results
Year | Revenues | Net income | ||||
---|---|---|---|---|---|---|
TV/Radio | Press | Total | TV/Radio | Press | Total | |
1983[51] | 302,785 | 459,510 | 762,295 | 124,696 | 104,034 | 228,730 |
1984[51] | 348,106 | 591,616 | 939,722 | 144,182 | 133,179 | 277,361 |
1985[51] | 378,297 | 642,583 | 1,020,880 | 150,970 | 138,512 | 289,482 |
1986[51] | 3,153,619[CA 1] | 970,755 | 4,124,374 | 474,535 | 158,999 | 602,678 |
1987[51] | 3,433,749 | 1,006,597 | 4,440,346 | 632,910 | 146,717 | 745,990 |
1988[51] | 3,749,557 | 1,023,896 | 4,773,453 | 722,171 | 129,720 | 816,029 |
1989[51] | 3,899,898 | 1,057,405 | 4,957,394 | 836,149 | 130,444 | 922,512 |
1990[51] | 4,283,633 | 1,101,969 | 5,385,602 | 830,457 | 132,371 | 923,215 |
1991[51] | 4,329,743 | 1,052,246 | 5,381,989 | 669,708 | 122,905 | 761,233 |
1992[51][52] | 4,265,561 | 1,078,566 | 5,344,127 | 619,317 | 136,389 | 755,706 |
1993[51] | 4,663,215 | 1,010,438 | 5,673,653 | 778,077 | 125,647 | 903,724 |
1994[53] | 5,277 | 1,102.1 | 6,379.7 | 1,127 | 155 | 1,239 |
1995[54] | 5,727.5 | 1,151.1 | 6,878.5 | 1,164.8 | 139 | 1,238.8 |
Since 1996, Capital Cities/ABC's financial results are included in those of Disney Media Networks. |
References
- ^ "SEC on acquisition of Capital Cities/ABC Inc. by The Walt Disney Company".
- ^ a b c d e ABC, INC. Selected Entity Name: CAPITAL CITIES COMMUNICATIONS, INC. Entity Information. NYS Department of State: Division of Corporations.
- ^ "This week's receipts: $26 million." Broadcasting - Telecasting, April 8, 1957, pp. 31-32. [1] [2]
- ^ "Providence stations sold" (PDF). Broadcasting. December 22, 1958. p. 9.
- ^ "FCC okays $30 million in station sales" (PDF). Broadcasting. August 7, 1961. p. 90.
- ^ "Another group gets bigger" (PDF). Broadcasting. March 2, 1964. p. 64.
- ^ "Capital Cities Corp. agrees to purchase station KPOL." The New York Times, March 5, 1966, pg. 51.
- ^ "Big sales get FCC approval." Broadcasting, August 3, 1964, pp. 52-53. [3] [4]
- ^ "Capital Cities buys KTRK-TV in Houston" (PDF). Broadcasting. November 21, 1966. p. 9.
- ^ "Poole buying WPRO-TV for $16.5 million" (PDF). Broadcasting. February 27, 1967. p. 9.
- ^ "Capital Cities buy-sale OK'd" (PDF). Broadcasting. June 19, 1967. p. 58.
- ^ ISBN 0313296367. Retrieved April 13, 2015.
- ^ "Capcities buys 9 Triangle outlets" (PDF). Broadcasting. February 16, 1970. p. 9.
- ^ "Last-minute clearance for Capcities." Broadcasting, March 1, 1971, pp. 19-20. [5] [6]
- ^ "Another spin-off by Capcities: WSAZ-TV goes next, to Lee Enterprises for $18 million" (PDF). Broadcasting. April 13, 1970. p. 46.
- ^ "Another spin-off by Capcities: WTEN(TV) goes to Poole Broadcasting for $19 million" (PDF). Broadcasting. April 27, 1970. p. 36.
- ^ "Part of Capcities package comes in" (PDF). Broadcasting. July 13, 1970. p. 36.
- ^ "Fates & Fortunes" (PDF). Broadcasting. 1972-01-31. Retrieved 2021-10-12.
- ^ "Capcities sells its AM in Huntington, W. Va" (PDF). Broadcasting. May 25, 1970. p. 50.
- ^ "Fort Worth media deal hits $100 million mark" (PDF). Broadcasting. January 8, 1973. p. 10.
- ^ "Teens are focus of latest CapCities documentary series" (PDF). Broadcasting Magazine. September 4, 1978. p. 37. Retrieved October 18, 2023.
- ^ [7][permanent dead link] Changing Hands."] Broadcasting, June 8, 1981, pg. 91.
- ^ "Changing Hands."[permanent dead link] Broadcasting, December 5, 1983, pg. 72.
- ^ "Changing Hands."[permanent dead link] Broadcasting, April 23, 1984, pg. 150.
- ^ "Changing Hands."[permanent dead link] Broadcasting, August 20, 1984, pp. 65-66[permanent dead link].
- ^ Kleinfield, N.R. "ABC is being sold for $3.5 billion; 1st network sale." The New York Times, March 19, 1985.
- ^ "Capcities + ABC." Broadcasting, March 25, 1985, pp. 31-32.
- ^ Lowry, Brian (December 28, 1999). "Leonard Goldenson, ABC Network Pioneer, Dies at 94". Los Angeles Times. Archived from the original on February 2, 2016. Retrieved May 5, 2018.
In 1985, after 32 years running ABC, he [Leonard Goldenson] agreed to sell the network to Capital Cities for $3.5 billion, at that time the biggest non-oil merger in history.
- ^ "General Electric Co., in the largest non-oil merger in..." United Press International. December 11, 1985. Retrieved May 5, 2018.
- ^ "FCC approval of CapCities/ABC deal likely." Broadcasting, March 25, 1985, pg. 33.
- ^ "ABC/CCC sells four TV's for $485 million; Detroit, Tampa to Scripps Howard." Broadcasting, July 29, 1985, pg. 30.
- ^ "Breaking up and breaking records." Broadcasting, August 12, 1985, pg. 29.
- ^ "Syndication Marketplace" (PDF). Broadcasting. 1986-01-13. Retrieved 2021-10-12.
- ^ "Cablecastings" (PDF). Broadcasting. August 4, 1986. p. 14. Retrieved October 18, 2023.
- ^ Strother, Susan G. (May 8, 1991). "Hbj Sells Off 12 Magazines In Farm Group". Orlando Sentinel. Retrieved May 11, 2015.
- ISSN 1524-7848.
- ^ Goldstein, Seth (1992-11-21). "CapCities/ABC Makes Video Foray" (PDF). Billboard. Retrieved 2021-10-20.
- ^ Lippman, John. Cap Cities/ABC Forms Joint Venture With Brillstein-Grey. February 3, 1994. Los Angeles Times.
- ^ BILL Carter, Bill. ABC in Unusual Venture With Talent Firm. February 3, 1994. The New York Times.
- ^ Lowry, Brian (July 26, 1993). "DIC Ent. formed for kids TV fare". Variety. Retrieved 2009-08-15.
- ^ Lowry, Brian (July 27, 1993). "ABC ups Iger, regroups divisions". Variety. Retrieved May 19, 2015.
- ^ Goldstein, Seth (1993-12-11). "ABC Lines Up Busy Schedule for 1st Quarter" (PDF). Billboard. Retrieved 2021-10-20.
- ^ Goldstein, Seth (1993-12-11). "ABC First Quarter" (PDF). Billboard. Retrieved 2021-10-20.
- ^ "Paramount Gains Cap Cities/ABC Video Publishing" (PDF). Billboard. 1994-06-11. Retrieved 2021-10-20.
- ^ McClellan, Steve. (December 5, 1994)."ABC makes high-profile production leap." Broadcasting & Cable. 1994.
- ^ Lowry, Brian (1994-02-03). "ABC inks prod'n duo". Variety. Retrieved 2021-08-17.
- ^ Geraldine Fabrikant (5 January 1996). "THE MEDIA BUSINESS;Disney and ABC Shareholders Solidly Approve Merger Deal". The New York Times. Retrieved July 8, 2013.
- ^ "Madison Wisconsin State Journal Archives, Sep 10, 1997, p. 49". NewspaperArchive.com. 1997-09-10. Retrieved 2019-11-11.
- ^ "WEEK IN REVIEW: JUNE 23-29". Crain's Detroit Business. 1997-06-30. Retrieved 2019-11-11.
- ^ "DISNEY, CAPITAL CITIES/ABC AGREE TO MERGE; $19 Billion Transaction Will Enhance Shareholder Values By Creating World's Leading Entertainment And Communications Company. - Free Online Library". Press Release. The Walt Disney Company. Retrieved 7 March 2013.
- ^ Securities and Exchange Commission.
- ^ Hagstrom 1994–1997, p. 131.
- ^ Annual report [Section 13 and 15(d), not S-K Item 405 Acc-no: 0000950130-95-000586 Size: 327 KB
- ^ Current report, items 1, 5, and 7 Acc-no: 0000950157-96-000044 Size: 16 KB
Bibliography
- Hagstrom, Robert G. (1994–1997). The Warren Buffett Way: Investment Strategies of the World's Greatest Investor. ISBN 0-471-17750-4.