Mr Rupert Murdoch's News Corporation said yesterday it was acquiring Chris-Craft Industries and two of its subsidiaries for $5.35 billion a move that will significantly expand its US television presence.
The purchase will add 10 television channels to Mr Murdoch's existing 23 stations in the US, including outlets operating in such premier markets as New York, Los Angeles and Dallas, Texas, according to a company statement. News Corp president Mr Peter Chernin said that the purchase will make the company the dominant player in New York and Los Angeles, the two top US television markets.
The newly acquired stations, including those belonging to Chris-Craft subsidiaries BHC Communications and United Television, will function as part of the Fox Television Network, a subsidiary of News Corporation.
Fox is considered the fourth largest US TV network following Walt Disney's ABC, General Electric's NBC and Viacom's CBS.
"We are acquiring stations with tremendous upside potential, particularly given Fox's strength in local news, entertainment programming, sports and sales," said Mr Murdoch, the company's chairman and chief executive.
The company said it expects its acquisition of Chris-Craft Industries will generate at least $300 million in earning before interest, taxes, depreciation and amortisation in its fiscal year 2002.
"This unique opportunity to increase ratings and revenues through top-market duopolies should quickly deliver substantially increased profits for News Corporation and Fox," he added.
The move would give News Corp 13 stations in the top 10 US markets and 20 stations in the top 20 US markets, subject to the divestiture of stations as necessary to comply with US federal communications law.
"This acquisition will also help Fox expand and improve its services in local news, sports and entertainment programming in the communities we serve," Mr Murdoch said.
The transaction comprises a cash payment of $2.13 billion and approximately 73 million ADRs - stock of foreign firms on Wall Street - representing 292 million News Corporation preferred shares.
News Corporation, with operations in the United States, Canada, Australia and the Pacific Basin, had total assets as of March 31st of approximately $40 billion and total annual revenues of approximately $14 billion.
