SBD/1/Sports Media

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  • DISNEY BUYS CAP CITIES/ABC: SELECTED REAX

         WASHINGTON POST'S PAUL FARHI:  "In one stroke, Disney would
    become the largest among the handful of global entertainment
    goliaths" (WASHINGTON POST, 8/1).
         MEDIA ANALYST PAUL SCHULMAN:  "It's a shock.  If you'd heard
    Disney had bought one of the three networks, your third guess
    would have been ABC.  How did they keep this quiet?  That's what
    I want to know" (USA TODAY, 8/1).
         BOOZ, ALLEN & HAMILTON'S MICHAEL WOLF:  "The merger wave in
    media is far from over.  I think this puts a premium on the two
    remaining networks and makes them much more interesting to other
    media companies" (DAILY VARIETY, 8/1).
         DREAMWORKS' JEFFREY KATZENBERG:  "Everything I speculated on
    was wrong.  This one wasn't even on my radar screen" (L.A. TIMES,
    8/1).
         L.A. TIMES' TOM PETRUNO:  "While synergy is an overused word
    on Wall Street, many large investors say this merger offers more
    potential for true synergy than most" (L.A. TIMES, 8/1).
         INVESTOR WARREN BUFFETT:  "It's a marriage of the No. 1
    content company in the world with the No. 1 distribution system"
    (REUTERS/FINANCIAL POST, 8/1).
         SMITH BARNEY'S JOHN REIDY:  "This is a colossus among
    colossuses. ... It's a company which is going to have the muscle
    to do almost anything it wants" (NEWSDAY, 8/1).
         L.A. TIMES' CLAUDIA ELLER:  "Hollywood, Wall Street and the
    entertainment media at large were all caught with their pants
    down" (L.A. TIMES, 8/1).
         VIACOM CHAIR SUMNER REDSTONE:  "There was not a whisper.
    This was a well kept secret" (BOSTON GLOBE, 8/1).
         TELE-TV CHAIR & CEO HOWARD STRINGER:  "This is Godzilla
    marrying King Kong.  The jungle is going to be a lonelier place
    for everyone else" (WALL STREET JOURNAL, 8/1).
         NEWS CORP. CHAIR RUPERT MURDOCH:  "They are twice as big as
    me now" (WALL STREET JOURNAL, 8/1).
         RUTGERS PROF. BENJAMIN BARBER, in a N.Y. TIMES op-ed:  "The
    fashionable term for all this vertical and lateral corporate
    integration is synergy, but synergy turns out to be just another
    word for monopoly" (N.Y. TIMES, 8/1).
         UPENN'S JOSEPH TUROW:  "The engine of all this is the
    globalization of media.  In order to make money on content, you
    have to be able to move your content through a larger number of
    distribution windows than in the past" (PHILADELPHIA INQUIRER,
    8/1).
    

    Print | Tags: ABC, News Corp./Fox, Media, Viacom, Walt Disney
  • JOLLY-GOOD TOMAHAWK, SIR MICHAEL

         Britian's Channel 4 has signed a three-year deal with the
    NBA to bring NBA programming to TVs across the UK, according to
    this week's VARIETY.  Channel 4, which introduced the NFL to the
    British in the '80s, will broadcast NBA All-Star Weekend, the '96
    Finals and several regular season games live.  Channel 4 Chief
    Exec Michael Grade:  "This is our biggest new sport-signing since
    Italian football three years ago" (VARIETY, 8/6 issue).
         SCHEDULE NEWS: In Boston, Peter May comments on the '95-95
    "NBA on NBC" schedule.  It "unsurprisingly, does not have a
    single Sunday game without either Orlando, Chicago, New York or
    Phoenix."  Chicago and Orlando will also be on TNT nine times
    each, NBC eight and TBS five (BOSTON GLOBE, 7/30).  ESPN Radio
    and Westwood One "have emerged" as possible rights holders for
    NBA radio (USA TODAY, 8/1).
    

    Print | Tags: ESPN, NBA, NBC, NFL, Media, TBS/TNT, Time Warner, Walt Disney
  • MEDIA NOTES

         The Sporting Goods Manufacturers Assn has created their own
    home page on the Web for the sporting goods industry.  Address:
    http://www.sportlink. com/sport (SGMA)....NBC and ABC may cross-
    promote MLB playoff games regardless of network during The
    Baseball Network's playoff coverage this fall.  Susan Karlin
    calls cross-promotion "a highly unusual act give that each of the
    networks will also be promoting its own fall series during the
    games" (ELECTRONIC MEDIA, 7/31 issue)....The NFL's Hall of Fame
    Game between new teams Carolina and Jacksonville received a 5.8
    rating, 16 share in overnight markets -- up 23% from last year's
    Atlanta-San Diego matchup.  CBS' Seles/Navratilova exhibition
    received a 2.6 rating/8 share.  In Charlotte, the game gained a
    19.5/44 (NFL).  Other NFL pre-season ratings:  In Denver, the
    rating for the KCNC's broadcast of the Broncos-49ers matchup
    received a 23.6/49.  In San Francisco, the game's local telecast
    earned a 15.9/38.  In Dallas, Saturday's local broadcast of the
    Bills-Cowboys had a 25.0/43 (Nielsen Sports
    Marketing)....SportsChannel Regional Network has launched its
    first-ever trade advertising campaign.  Full-page color spots
    will run in Cable World, CableVision and Multichannel News over
    the next five months (SportsChannel)....With the Red Sox as "the
    big catalyst," Boston's all-sports WEEI-AM has entered into
    Boston's Top 10 -- No. 7 -- for the first time (BOSTON HERALD,
    8/1)....DirecTV has launched a new ad campaign created by
    Campbell Ewald of L.A.  The spots will tout DirecTV's NFL Sunday
    Ticket package and feature "Murphy Brown" star Joe Regalbuto (AD
    AGE ONLINE, 8/1).... Minneapolis' KFAN All-Sports Radio has
    established a web site that allows fans quick access to other
    sports web sites along with information on the station.  Address:
    http:// www.kfan.com (Minneapolis STAR-TRIBUNE, 8/1)....Prodigy's
    struggle to keep pace with Compuserve and America Online as the
    Microsoft Network prepares to go online is featured in the
    current BUSINESS WEEK (BUSINESS WEEK, 7/31 issue).
    

    Print | Tags: ABC, Boston Red Sox, Buffalo Bills, Cablevision, CBS, Dallas Cowboys, Denver Broncos, DirecTV, Microsoft, MLB, NBC, NFL, Nielsen, San Francisco 49ers, SGMA, Media, Viacom, Walt Disney
  • WESTINGHOUSE/CBS DEAL MAY COME TODAY; IS NET MORE DESIRABLE?

         Westinghouse Electric is expected to announce today an
    agreement to purchase CBS at $81 a share or about $5B, "people
    familiar with the transaction" told this morning's WALL STREET
    JOURNAL.  Seven Lipin and Elizabeth Jensen report that "the
    boards of the two companies are scheduled to meet this morning to
    vote" on the deal, with an announcement expected today (WALL
    STREET JOURNAL, 8/1).
         HOLD EVERYTHING!  After yesterday's Cap Cities/ABC- Disney
    merger, speculation "has intensified" that another company, such
    as a Hollywood studio, might try to outbid Westinghouse.  The
    Disney-ABC deal "could well raise the value of media properties,
    such as networks."  Even Cap Cities/ABC Chair Thomas Murphy
    "quipped yesterday" that the merger of his company with Disney
    means that CBS Chair Laurence Tisch probably "can get more for
    his company today."  Shares of CBS jumped $1.88 to $77.15 on news
    of yesterday's Disney/ABC deal (WALL STREET JOURNAL, 8/1).  John
    Durie writes in this morning's N.Y. POST, "If the likes of Ted
    Turner and Edgar Bronfman Jr. at Seagram were thinking about
    buying a television network, yesterday's deal raises the urgency"
    (N.Y. POST, 8/1).  Susannah Patton of DOW JONES NEWS SERVICE
    writes, "CBS Inc. suddenly looks a lot more popular."  Patton
    notes that while Disney can provide programming for ABC,
    "Westinghouse would only add distribution to CBS," making
    "potential bidders that could provide programming" more likely
    "to jump into the bidding arena."  Patton also mentions
    Bronfman's Seagram Co. and Turner, along with Viacom, Time
    Warner/TCI and Barry Diller as potential suitors (BOSTON GLOBE,
    8/1).  Turner is said to be close to a deal with King World
    Productions, "which has enough cash on hand to allow Turner to
    proceed to buy CBS," (Claudia Carpenter, N.Y. POST, 8/1).
         PEACOCK BACK IN PLAY?  The N.Y. POST's Durie also writes
    that yesterday's deal could potentially land NBC on the market.
    Durie:  "Jack Welch at General Electric may also consider selling
    NBC if this deal sets off a bidding war for the newly "scarce'
    television networks" (N.Y. POST, 8/1).  Dillon Read analyst
    Edward Atorino also notes the possibility of an NBC sale.
    Atorino: "Welch may be saying that broadcasting isn't such a big
    part of the business.  He may unlock NBC" (BOSTON HERALD, 8/1).
         MOVEMENTS BY FOX TOO?  CNN's Steve Young: "Some analysts say
    the Disney deal will also push Rupert Murdoch to expand using a
    recent $2 billion MCI investment in his News Corp. empire"
    ("Moneyline," CNN, 7/31).
         OTHER NBC NEWS:  NBC has apparently offered to buy Outlet
    Communications -- the owner of several NBC affiliates -- for more
    than $396M, according to this morning's N.Y. TIMES.  The bid
    would renew a bidding war with Renaissance Communications, which
    offered $360M for Outlet in late June.  Renaissance, which owns
    several top-50 Fox affiliates, responded to NBC's bid by suing
    both companies.  A hearing is scheduled for today (N.Y. TIMES,
    8/1).
    

    Print | Tags: ABC, CBS, NBC, News Corp./Fox, Media, Time Warner, Viacom, Walt Disney
  • WHAT THE DISNEY/CAP CITIES DEAL MEANS FOR THE SPORTS WORLD

         "There was a time not long ago when the four major sports
    and the broadcast networks were considered the preeminent players
    in sports," writes Steve Zipay in NEWSDAY this morning.  "That
    era officially ended Monday."  Disney's $19B purchase of Cap
    Cities/ABC, Zipay writes, "is a ringing affirmation that Fortune
    500 companies drive sports and the Big Three in that realm are
    now Nike, Coca-Cola and Disney."  Jeffrey Pollack, Publisher of
    THE SPORTS BUSINESS DAILY:  "Without question, the merger is the
    most significant deal deal ever to hit sports, in terms of the
    complete and total integration of entertainment, media and
    sports.  Disney's power in sports is now unavoidable."  Zipay
    notes that Disney/ABC must now be considered a possible bidder
    2000 Sydney Games and, "more likely," the 2002 Salt Lake City
    Games.  In addition, ABC could be back in the hunt for baseball,
    with Disney "saying that the decision [to pull out of The
    Baseball Network] was one made by the former regime."  Zipay:
    "Imagine offering Disneyland as a site for the All-Star Game or
    the Super Bowl during negotiations."  Sources say Mighty Ducks
    President Tony Tavares "may emerge as a top executive on Disney's
    sports side" (NEWSDAY, 8/1).
         FROM THE MAN HIMSELF:  Asked about the merger's influence on
    sports, Disney Chair Michael Eisner said, "I think entertainment
    and sports are related anyway.  The Disney Company, through some
    of our Goofy cartoons and stuff, has always been sports oriented.
    Anything to get people out of the house, and into a movie theater
    or a sports complex" ("Larry King Live," CNN, 7/31).
         GRUMPY, SNEEZY, DOPY, DOC ... BOOMER, DAN & KEITH?  As part
    of the deal, Disney assumes Cap Cities' 80% share in ESPN Inc.
    Asked what kind of synergies he sees coming from the merger,
    Eisner was quick to mention the global possibilities of ESPN.
    Eisner:  "There's obviously the synergy of putting ESPN and the
    Disney Channel together around the world.  And there are many
    place in the world, like China, India and other places, that do
    not want to accept programming that has political content, but
    they have no problem with sports, and they have no problem with
    the Disney type of programming.  The leverage of those two
    together, in what used to be third-world countries, or closed
    countries, is enormous" ("MacNeil/Lehrer," PBS, 7/31).  Smith
    Barney analyst Jill Krutick "sees plenty of opportunities for
    cross-promotions," including ABC and ESPN-logoed products sold at
    Disney stores (S.F. CHRONICLE, 8/1).  NatWest Securities' Paul
    Marsh:  "Imagine promoting a Disney sports movie like Mighty
    Ducks on ESPN."  In addition, ESPN itself  was recently part of a
    deal to buy out Labatt's communication holdings, including
    Canada's cable sports channel, The Sports Network
    (BLOOMBERG/TORONTO STAR, 8/1).  The WALL STREET JOURNAL notes
    another possibility:  "a chain of ESPN sports clubs or bars."
    Eisner said he is already envisioning ways to "grow ESPN and
    Disney outside the house" (Jefferson & Bannon, WALL STREET
    JOURNAL, 8/1).  The N.Y. TIMES' Bill Carter lists the following
    possibilities:  the combination of ESPN-Disney programming
    distributed globally; ESPN-branded attractions inside Disney
    parks; new channels from ABC/ESPN programs for distribution
    through new cable or phone company-delivered video services (N.Y.
    TIMES, 8/1).
         DISNEY AND BASEBALL:  In Baltimore, Milton Kent asks, "Could
    there be a better fit than Major League Baseball, which
    desperately needs to be marketed properly, and Disney, the
    masters of manipulation?" (Baltimore SUN, 8/1).  Asked if ABC
    would be interested in baseball, Cap Cities/ABC Chair Thomas
    Murphy said, "We are interested in anything that would be good
    for our audience" ("Larry King," CNN, 7/31).  In L.A., Daniel
    Howard Cerone also notes that ABC's decision to get out of
    baseball could change.  One exec from another network sports
    division:  "All bets are off now. ... They're not only
    broadcasters now, they're the entertainment industry's best
    marketers and merchandisers.  They can go to anybody they want to
    partner up with and say:  'We can put your products in the Disney
    stores nationwide.  We can merchandise them in our amusement
    parks" (L.A. TIMES, 8/1).
         DISNEY AND FOOTBALL:  Asked if Disney would bring an NFL
    franchise to Los Angeles, Eisner said, "We have talked to several
    people about it, but if the Disney Company would be involved it
    would be in Anaheim or Orange County" ("Larry King Live," CNN,
    7/31).  In Orange County, Andre Mouchard writes that buying a
    network "increases the odds that Disney will buy a pro football
    team" (ORANGE COUNTY REGISTER, 8/1).
         L.A. STORY:  One of the few conflicts to be resolved from
    the merger is the fact that Disney owns L.A.'s KCAL-TV while Cap
    Cities owns KABC-TV.  FCC regulations prohibit ownership of two
    stations in one market.  For now, KCAL will be placed in a trust,
    but Eisner expressed doubt that Disney "would be able to hang
    onto it."  KCAL owns the rights to the Mighty Ducks, but Disney
    may opt to show the team's games on KABC or ESPN.  In addition,
    the Angels, currently on KTLA, "may also find a new home as a
    result of the merger."  Disney is in the process of acquiring a
    25% stake in the MLB team (Gene Braxton, L.A. TIMES, 8/1).
         SPORTS ON AIR:  Cap Cities owns 10 TV stations and 21 radio
    stations around the country.  The Cap Cities stations that hold
    rights to pro sports teams:  WABC-AM (Yankees), KABC-TV
    (Dodgers), KGO-AM (49ers), WJR-AM (Tigers, Red Wings), WBAP-AM
    (Stars), WMAL-AM (Capitals) (THE DAILY).
    

    Print | Tags: ABC, LA Angels, Anaheim Ducks, Anaheim Sports, Coca-Cola, Dallas Stars, Detroit Red Wings, Detroit Tigers, ESPN, Labatt Brewing, Los Angeles Dodgers, MLB, New York Yankees, News Corp./Fox, NFL, Nike, San Francisco 49ers, Southwest Sports Group, Media, Time Warner, Walt Disney, Washington Capitals, YankeeNets
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