STATIONS—News Corp. Deal For L.A. Stations May Force Shifts

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A shake-up in local television news operations could be in the offing if News Corp.’s $5.3 billion purchase of 10 Chris-Craft Industries Inc. television receives final approval from the Federal Communications Commission, as expected.

Andrew Butcher, a spokesman with News Corp. in New York, declined to comment on plans for the Chris-Craft stations, but according to industry analysts, News Corp. executives are exploring ways to combine operations in markets where both companies own stations once the anticipated approvals come through this summer.

Brent Magid, president of the media research firm Frank N. Magid Associates, said he expects the general managers of the Fox-owned-and-operated stations to assume control of the duopolies.

That means David Boylan, general manager and vice president of KTTV Channel 11 in Los Angeles, would also oversee the operations of KCOP Channel 13.

“Both stations have news operations, which could present Fox with a tremendous cost savings by combining them into a single news operation,” said Magid. “The danger is a strict focus on economics rather than focusing on the programming opportunities.”

Magid said he expects Fox would program each of its Los Angeles channels in terms of demographics to cover a wider area of the market. For example, one station could focus on men 18-to-34, while the other channel could focus its programming to the entire 18-to-49 demographic, he said.

Magid, echoing many other media industry analysts, expects the FCC to approve the Chris-Craft deal without making Murdoch sell either Los Angeles station.

“There is competition in Los Angeles, with eight English-speaking stations,” he said. “As long as the ability exists for multiple voices to be delivered in the marketplace, the government will overturn its 35 percent limit and approve this deal.”

The FCC prohibits broadcast companies from controlling more than 35 percent of the TV households is a given market, or owning two “major network” stations in a single market, so-called duopolies.

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