The deal gives News Corp a second TV station in the important Chicago market. The station, a Viacom-owned UPN affiliate, was acquired from closely held US media group Newsweb Corp.
The deal gives News Corp a duopoly in the US's number three television market, making it subject to standard regulatory approval. Fox already owns WFLD-TV, a Fox network affiliate, in the Chicago market, which should allow it to make a number of cost savings and the ability to offer advertisers a wider array of choices in the market.
The latest station acquisition gives Fox 35 stations and nine duopolies in major markets, including the top three markets of New York, Los Angeles and Chicago. The acquisition is expected to close in the final quarter of 2002. The other duopoly markets Fox controls are in New York, Los Angeles, Dallas, Washington, DC, Houston, Minneapolis, Phoenix and Orlando.
Lachlan Murdoch, News Corp's deputy chief operating officer, said: "The acquisition of WPWR continues our strategy of creating duopolies in major US television markets. We will now have duopolies in the top three markets and in nine of the top 20. In those markets where we already operate two stations, we've started to see the benefits of our duopoly strategy in the form of increased profit margins, better-quality news and entertainment for viewers, and improved offerings to advertisers."
Mitchell Stern, chairman and CEO of Fox Television Stations, added: "This is an important acquisition for the station group in one of the nation's biggest and most vibrant television markets -- particularly at a time when we are seeing a distinct recovery in the advertising market."
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