From the MCRFB old radio news scrapbook: 1946
WXYZ, WOOD SALE APPROVED TO AMERICAN BROADCASTING NETWORK
Commission also approves web’s purchase and resale of Noble stock
WASHINGTON, February 20 — The Federal Communications Commission appears strongly determined to build up American Broadcasting Company as a major rival for Columbia Broadcasting System and National Broadcasting Company, even to the extent of compromising of its often expressed policy of holding down prices paid for station transfers.
Latest evidence of this is seen in speedy approval of FCC this week of ABC’s bid to buy Detroit’s WXYZ and Grand Rapids’ WOOD for $3,675,000 from King-Trendle Broadcasting Corporation. Tossed in with two standard stations, almost as an afterthought, are Detroit video and FM grants. At the same time, FCC announced approval of ABC’s stock deal in which the web takes control from Edward J. Noble and resells about $12,000,000 worth of stock to its affiliates.
Acquisition of WXYZ gives ABC a profitable Detroit outlet to add to owned and operated stations in New York (WJZ), Chicago (WENR), Los Angeles (KECA), and San Francisco (KGO). When proceeds of the stock begins to flow into ABC coffers, it is anticipated that the net is likely to be shopping around for one or two more stations in profitable market areas. WOOD is to be disposed at a later time. END.
(Information and news source: Billboard; July 27, 1946).
