PAX TV buyout news story...CBS MARKETWATCH.COM
Paxson jumps 12% on speculation
NBC, Disney among perceived suitors
By David B. Wilkerson <mailto:dwilkerson@marketwatch.com>, CBS.MarketWatch.com Last Update: 2:23 PM ET March 14, 2002
WEST PALM BEACH, Fla. (CBS.MW) -- Shares of Paxson Communications soared more than 12 percent Thursday, amid speculation that the television network operator and station owner could become the object of a takeover bid.
Among the perceived suitors, according to Briefing.com, are General Electric's NBC unit, which already owns 32 percent of Paxson; and Walt Disney Co. parent of ABC.
Paxson shares, after climbing as high as $12, traded at $11.50 in afternoon dealings, up 8.5 percent on the session.
Representatives at NBC and Paxson (did not immediately return calls seeking comment. Disney spokesman Ken Green said the company never comments on speculation.
Paxson, owner of 65 UHF television stations across the U.S. among other assets, had long been considered a potential target, but interest in the company has surely increased since Feb. 19.
That day, the U.S. Court of Appeals for the District of Columbia ordered the Federal Communications Commission to rewrite or abolish restrictions that prevent one person or company from owning stations reaching more than 35 percent of U.S. TV households.
Of note, NBC and Paxson have not been on friendly terms for some time. After arguing with NBC over various programming issues, Paxson became particularly incensed last October when NBC announced a deal to purchase Spanish-language TV broadcaster Telemundo. Paxson said such a transaction violates a series of obligations the NBC has to Paxson.
Nineteen of Paxson's stations are especially valuable, as they are licensed to operate in the channel 60-69 UHF band. This spectrum is slated to be auctioned off -- after many delays -- by the FCC in June.
The spectrum could be used for additional television programming, or to transmit various kinds of data. Once a two-way transmission standard is established, the spectrum also could be used to distribute high-speed Internet service.
Disney shares lost 15 cents to $23.32 in recent dealings, while GE rose 35 cents to $40.35.
David B. Wilkerson is a reporter for CBS.MarketWatch.com in San Francisco. |
