CBS Inc. reported a "sharply lower" third-quarter net income
of $58.4M, of 77 cents a share. CBS attributed the decline
"mainly to higher taxes and a one-time gain in 1993's third
quarter." David Londoner, an analyst at Wertheim Schroder & Co.,
said the results were in line with his expectations "because so
much of the year-earlier profit came from a variety of
nonrecurring items." CBS stock fell 9 1/2 points to close at
329.50. The CBS TV Network reported lower operating income, but
CBS Sports had a higher operating income due to the absence of
football and baseball in '94, resulting in lower costs (Elizabeth
Jensen, WALL STREET JOURNAL, 10/13). The drop in stock price
"wiped out most of the gain of $11.75 that shares of CBS had
posted on Monday and Tuesday, after unconfirmed reports" had CBS
Chair Laurence Tisch in discussions with QVC's Barry Diller about
Diller running the network. On the positive side, CBS said ad
sales at O&O's in L.A., Chicago and Miami rose by more than 10%
(Susan Antilla, N.Y. TIMES, 10/13).
ABC'S DEAL WITH THE SEC: As expected, ABC retained the
rights to the SEC college football championship playoff, in a 5-
year, $20M deal for 1996-2000. The deal, completed late Monday
during ABC's exclusive negotiating period, is a 122% increase
from ABC's $1.8M annual contract ending in '95. CBS has the
rights, beginning next year, to SEC regular season games (Rudy
Martzke, USA TODAY, 10/13).
