Report No. MM-808 MASS MEDIA ACTION March 8, 1994 TRANSFER OF SEVEN TV STATIONS FROM PARAMOUNT TO VIACOM APPROVED; ONE-TO-A-MARKET RULE WAIVED The Commission has granted the application to transfer control of the following television stations from Paramount Communications Inc., to Viacom Inc.: WKBD, Channel 50 (Fox), Detroit, MI; KTXH, Channel 20 (Ind.), Houston, TX; KRRT, Channel 35 (Fox), Kerrville, TX; WDCA, Channel 20 (Ind.), Washington, DC; KTXA, Channel 21 (Ind.), Arlington, TX; WTXF, Channel 29 (Fox), Philadelphia, PA; and WLFL, Channel 22 (Fox), Raleigh, NC. Viacom currently controls the following TV stations: WHEC-TV, Channel 10 (NBC), Rochester, NY; KSLA-TV, Channel 12 (CBS), Shreveport, LA; KMOV-TV, Channel 4 (CBS), St. Louis, MO; WNYT-TV, Channel 13 (NBC), Albany, NY; and WVIT(TV), Channel 30 (NBC), New Britain, CT; and the following radio stations: KXEZ(FM), Los Angeles, CA; WLTI(FM), Detroit, MI; WLIT(FM), Chicago, IL; KBSG(AM), Auburn, WA; KBSG-FM, Tacoma, WA; WMZQ(AM), Arlington, VA; WMZQ-FM, Washington, DC; WCPT(AM), Alexandria, VA; WCXR-FM, Woodbridge, VA; WLTW(AM), New York, NY; KYSR(FM), Los Angeles, CA; KNDD(FM), Seattle, WA; KSRY(FM), San Francisco, CA; and KSRI(FM), Santa Cruz, CA. (over) - 2 - Therefore, the Paramount-Viacom merger would create, in violation of the Commission's "one-to-a-market" rule, a radio- television combination in Detroit and a TV/2 AM/2 FM combination in Washington, DC. Thus, Viacom requested, and the Commission has granted, permanent waivers for its TV/AM/FM combination in the Detroit market and for what will ultimately be a TV/AM/FM combination in the Washington, DC, market, was well as a temporary waiver to allow orderly divestiture of an AM and FM in the Washington, DC, market. The Commission noted that the request for a permanent waiver for the Detroit market, where Paramount's WKBD(TV) and Viacom's WLTI(FM) will be commonly owned, satisfied the Commission's "top 25 markets/30 voices" standard, which states that waivers will generally be granted in cases where the market is in the top 25 and there are 30 radio and television "voices" in addition to the co- owned ones for which the waiver is sought. The requests for the temporary, as well as permanent, waiver for the Washington, DC, market involves Paramount's WDCA(TV), Viacom's WMZQ(AM) and WMZQ-FM, and Viacom's recently acquired WCPT(AM) and WCXR-FM, stations it had contracted to purchase prior to the proposed Paramount-Viacom merger. While Viacom proposes to divest an AM and an FM in that market within 18 months, thereby necessitating a temporary waiver for the TV/2 AM/2 FM combination, it will still retain a TV/AM/FM combination after the divestiture, necessitating a permanent waiver as well. The Commission said that Viacom had demonstrated the need for an 18-month divestiture period and that grant of the temporary waiver would be in the public interest. It said that Viacom had demonstrated that its request for permanent waiver of the one-to-a-market rule comported with the "top 25 markets/30 voices" standard. Finally, the Commission addressed the interlocking directorships of three individuals whose seats on the merged entity's board and other media-related companies' boards would either violate the Commission's multiple ownership rules or implicate its cross-interest policies. The Commission will require that these individuals recuse themselves from matters on the board seat creating a conflict with the Commission rules and policies. Action by the Commission March 8, 1994, by Memorandum Opinion and Order (FCC 94-54). Chairman Hundt, Commissioners Quello and Barrett. - FCC - News Media contact: Rosemary Kimball at (202) 632-5050. Mass Media Bureau contact: Anne Lucey at (202) 632-6357.