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Paxson in Talks That Could Lead to Sale of Stake in Company
Paxson in Talks That Could Lead to Sale of Stake in Company
West Palm Beach, Florida, Aug. 5 (Bloomberg) -- Paxson Communications Corp., owner of the largest U.S. television station group, is in talks with several ''strategic partners'' that could lead to a sale of a stake in the company, Chairman Lowell Paxson said.
The broadcaster already started active negotiations in anticipation of a ruling today by federal regulators that will relax TV ownership rules by allowing a group to own two stations in large markets, Paxson said. The talks also involve selling individual stations, he said.
Today's ruling by the Federal Communications Commission would allow a station group to buy as much as 32 percent of Paxson's stock without pushing the buyer above a limit that prevents broadcasters from owning stations that reach more than 35 percent of U.S. homes, Paxson said. He said a transaction like that could involve selling a stake to one of the networks, which could lead to a programming alliance or sharing broadcast facilities and sales forces between the companies. ''We can have a major station owner or a network come in, take a 32 percent position in this company, and have a synergistic relationship by supplying programming to one another,'' Paxson said in an interview.
Paxson also said he's willing to sell his entire station group if someone offers the right price. ''We would have a great opportunity if someone wanted to come in and buy the entire group and pay a heck of a premium,'' Paxson said. ''There's going to be a mad scramble.''
Paxson shares today rose 1 to 12 3/4.
Still, Paxson said a sale of a stake in the company is ''a more exciting'' and ''more likely'' option.
Under the FCC's ruling, a single person or entity for the first time will be able to own two stations in a market with numerous stations. Owners of a top-four station in a market can buy any other station not in the top four only when eight independent stations will remain.
That creates an opportunity for Paxson to sell individual stations in various markets. ''We're going to have a duopoly dance, and I'm the prettiest girl at the dance,'' he said.
NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.
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