FCC waiver allows KGUN parent Journal to buy KWBA

Tag : FCC Guidelines
FCC waiver allows KGUN parent Journal to buy KWBA

Gerald M. GayThe Arizona Daily Star, Tucson
Released : Thursday, June 05, 2008 4:00 AM
Jun. 5--The Federal Communications Commission has granted a waivergiving the Journal Broadcast Group permission to buy local CWaffiliate KWBA from the Cascade Broadcasting Group -- even thoughthe deal creates a television "duopoly" in Southern Arizona.
Under FCC guidelines, two television stations licensed in the sameDesignated Market Area may not have the same owner -- what the FCCcalls a duopoly -- unless at least one of the stations is notranked among the top four stations and there are at least eightother independently owned and operated full-power commercial andnon-commercial TV stations in the area.
Since Milwaukee-based Journal already owns the local ABC affiliateKGUN, its purchase of KWBA would leave the Tucson-Sierra Vistamarket area with fewer than eight other stations.
But the FCC granted a waiver in this instance, declaring KWBA(Channel 58/cable Channel 8) a "failing station" that has been"struggling for an extended period of time both in terms ofaudience share and financial performance."
According to a report released Monday by the FCC, between February2005 and November 2007, KWBA's all-day audience shares averaged 1.9and were never higher than a 3 share, a decline attributed to theKWBA's loss of Arizona Diamondbacks programming.
The report says that KWBA's "financial posture has been worseningduring that time" and that the station has been "monetizing most ofits major available assets, including the station's building andall spare equipment," as well as "deferring payments of variousliabilities and obligations to sustain its continued performance."
The report stated that Cascade retained the media brokerage andinvestment banking firm Patrick Communications to sell the stationand, after looking at 35 prospective buyers, received only theoffer from the Journal Broadcast Group.
Journal said KWBA will be using the same facilities as KGUN,according to the report, and the station would initiate a 30-minuteweekday newscast.
It will also heighten KWBA's community outreach efforts, includingthe station in holiday food drives and other KGUN-sponsored events.
KWBA general manager Andrew Stewart estimates the sale will befinalized within the next 30 to 60 days.
--Contact reporter Gerald M. Gay at 573-4137 or ggay@azstarnet.com.
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