From Deseret News archives:
KTVX owner agrees to buy KUWB
Ch. 30, owned by St. Louis-based ACME Communications, was rumored to be on the block from the moment the Federal Communications Commission changed its rules in June 2003 to allow one station to own another in the same TV market — but only under certain circumstances, which apply in this case.
And Clear Channel Communications, which owns not only Ch. 4 but seven radio stations in Salt Lake City, has made no secret of its interest in buying its competitor — the theory behind duopolies being that stations can share staff, cut costs, combine sales efforts and cross- promote.
It was also no secret that, while KUWB has improved its ratings dramatically since it signed on in 1998, it has struggled to bring in advertising dollars.
"ACME has had a difficult time here," said Steve Spendlove, a former KTVX general manager who is now Clear Channel's television regional senior vice president. "This obviously gives us the economic advantage of a duopoly."
In making the announcement, Doug Gealy, ACME president and chief operating officer, acknowledged that it has been "challenging . . . for a stand-alone, start-up television station" to succeed in Salt Lake City. "And we believe that the station will prosper, given all the cross-promotional benefits of the duopoly."
"It's a good thing," said Spendlove. "It's good for us and it will be good for viewers."
Local viewers won't see any immediate changes, pending finalization of the sale. But the future may hold things like shared programming and, as is the case with many duopolies, a presence for Ch. 4's news on Ch. 30.
"We're a little early to talk about that," Spendlove cautioned. "We need to learn who watches the station and what they expect and want."
Effective immediately, the two companies will "co-manage" KUWB's advertising sales. And once the sale is finalized, the two will combine all sales and promotions departments.
Spendlove cautioned that it's too early to start talking about staff cuts, too.
"ACME runs a very lean operation," he said. "It's not that (KUWB) ran inefficiently. The fact is that stand-alones are very difficult. And you're not going to save your way to success."
The sale, which must still be approved by the FCC, would give Clear Channel its 36th TV station. It manages five others. The company may have to sell one of its Salt Lake radio stations to comply with current ownership regulations. Spendlove acknowledged that Clear Channel is "a little heavy in the radio properties" and may have to make a "license adjustment," which could mean selling a station but continuing to manage it.
Clear Channel currently owns KALL-AM, KKAT-FM, KNRS-AM, KODJ-FM, KURR-FM, KWLW-AM and KZHT-FM and manages three others in the Salt Lake market.
E-mail: pierce@desnews.com
