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Capital Cities/ABC

From Alfawiki
Capital Cities/ABC Inc.
Formerly
  • Hudson Valley Broadcasting Company
  • (1946–1959)
  • Capital Cities Broadcasting
  • (1959–1973)
  • Capital Cities Communications
  • (1973–1985)
Company typePublic
Template:NYSE was
IndustryRadio broadcasting, television broadcasting, publishing, recording
PredecessorAmerican Broadcasting Companies, Inc.
FoundedApril 5, 1946; 80 years ago (1946-04-05)
FoundersHyman Rosenblum
Lowell Thomas
Frank Smith
DefunctTemplate:End date and age
FateAcquired and merged into The Walt Disney Company
Successor
Headquarters
Albany, New York
,
U.S.
Key people

Capital Cities/ABC Inc. was an American media enterprise established in 1985 following the acquisition of the larger American Broadcasting Companies, Inc. by Capital Cities Communications. The company was subsequently purchased by The Walt Disney Company in 1996 and rebranded as Disney–ABC Television Group, presently known as Disney General Entertainment Content.

Origins

The beginnings of Capital Cities/ABC Inc. trace back to 1946 when Albany entrepreneur Hyman Rosenblum, alongside investors including future Congressman Leo William O'Brien, obtained a radio license in Albany. Incorporated on April 5, 1946, as Hudson Valley Broadcasting Company, it launched WROW radio in Albany. By 1953, the company expanded into television with the introduction of WROW-TV serving the Albany-Schenectady-Troy area. Later that year, a group of New York City investors led by broadcaster and businessman Lowell Thomas took majority control, appointing his associate Frank Smith as president and steering the company’s initial expansion within broadcasting markets.

The Capital Cities era

In 1956, WROW-TV shifted to channel 10 and was renamed WCDA. A year later, Hudson Valley Broadcasting merged with Durham Broadcasting Enterprises, the proprietors of WTVD in Durham, North Carolina, creating Capital Cities Television Corporation. The company began growing its footprint by acquiring stations such as WPRO-AM-FM-TV in Providence in 1959 and rebranded itself as Capital Cities Broadcasting in December of that year.

During the 1960s, Capital Cities expanded its holdings by purchasing WPAT-AM-FM in Paterson, WKBW radio and television in Buffalo, and the Goodwill Stations group which included WJR-AM-FM in Detroit. In 1966, it entered the Los Angeles market through acquisition of KPOL AM and FM. To adhere to FCC regulations limiting VHF station ownership, Capital Cities divested certain stations to Poole Broadcasting, owned by former stakeholder John B. Poole. The company also acquired KTRK-TV in Houston in 1967.

Diversification into publishing began in 1968 with Capital Cities’ acquisition of Fairchild Publications, known for Women's Wear Daily. The following year marked its entry into newspapers with the purchase of The Oakland Press located in Pontiac, Michigan.

In 1970, Capital Cities significantly bolstered its television portfolio by acquiring WPVI-TV (Philadelphia), WTNH-TV (New Haven), and KFSN-TV (Fresno) from Triangle Publications along with its syndicated television division. To comply with FCC ownership restrictions, it sold several stations including WTEN and WSAZ-TV. The syndication division was renamed Capital Cities Television Productions. Reflecting its broadening scope across media sectors, the firm adopted the name Capital Cities Communications in 1973.

Mid-1970s acquisitions included WBAP-AM and KSCS-FM in Fort Worth alongside the Fort Worth Star-Telegram, Oregon-based Jackson Newspapers, as well as Kansas City Star and Times Leader of Wilkes-Barre. Capital Cities also engaged in legal efforts to defend its market interests, notably opposing Canadian simultaneous substitution policies.

Between 1978 and 1985, before acquiring ABC, Capital Cities produced family-oriented specials through its syndication arm. It expanded broadcasting assets with the purchase of WBIE-FM near Atlanta in 1981 but divested its original Albany radio stations by 1983. Its final acquisitions prior to merging with ABC included independent station WFTS-TV in Tampa and KLAC radio in Los Angeles during 1984.

This period was characterized by consistent growth driven by strategic acquisitions across broadcasting and publishing industries, positioning Capital Cities as a diversified media conglomerate with expanding influence and a wide-ranging portfolio of services and products.

Capital Cities/ABC

On March 19, 1985, Capital Cities revealed its $3.5 billion purchase of ABC, a move that surprised many given ABC's size was roughly four times larger. Warren Buffett, chairman of Berkshire Hathaway, provided financing for the acquisition in return for a 25% ownership stake in the newly formed entity. At the time, this deal represented the largest merger outside the oil industry worldwide, although General Electric's later acquisition of RCA within the same year surpassed it.

The combined company, known as Capital Cities/ABC (CapCities/ABC), was required to divest certain stations to comply with FCC ownership regulations, as the merger resulted in exceeding market concentration limits in some areas. Capital Cities maintained control over stations in Philadelphia, Houston, Durham, and Fresno. Meanwhile, outlets such as WFTS and WXYZ-TV in Detroit were sold to the E. W. Scripps Company; others including WTNH and WKBW-TV were transferred to minority-owned businesses due to signal overlap constraints with ABC’s flagship station WABC-TV in New York.

Capital Cities/ABC obtained a permanent waiver from the FCC allowing it to keep WPVI-TV despite concerns about overlapping signals, referencing CBS’s grandfathered rights to own stations with similar overlaps. WPVI-TV and KTRK-TV remained significant ABC affiliates, while WTVD and KFSN-TV transitioned from CBS to ABC affiliation in 1985.

Regarding radio assets, CapCities divested WPAT stations to Park Communications, sold WKBW (rebranded as WWKB) to Price Communications, transferred KLAC and KZLA-FM to Malrite Communications, and disposed of ABC’s WRIF-FM in Detroit to a minority-owned group.

The merger was completed on January 3, 1986, uniting ABC’s prominent media holdings—including television and radio stations in New York, Los Angeles, Chicago, and San Francisco—with Capital Cities’ broadcasting properties, publishing divisions such as Fairchild Publications, and newspapers like the Fort Worth Star-Telegram and Kansas City Star. Syndication rights to Capital Cities’ production library were acquired by Orbis Communications and leased by HBO for a two-year period.

In May 1991, Farm Progress Companies under Capital Cities/ABC purchased the 12-magazine agricultural publishing portfolio from Harcourt Brace Jovanovich. The following year saw the sale of Word Inc.'s music and book publishing operations to Thomas Nelson. Additionally in 1992, ABC established its home video division under the leadership of Jon Peisinger.

By 1993, Capital Cities/ABC entered into a television production partnership with Brillstein-Grey Entertainment to capitalize on talent management expertise alongside relaxed production regulations. The company also gained majority control of animation studio DIC Animation City, forming DIC Entertainment L.P., and restructured into four main divisions: ABC TV Network Group, CC/ABC Publishing Group, CC/ABC Broadcast Group, and CC/ABC Multimedia Group. Bob Iger was elevated to executive president of CapCities/ABC.

To broaden its video distribution capabilities, ABC launched Signet Video (which was later renamed Summa Video), collaborating with Paramount Home Entertainment for distribution services. In 1994, Capital Cities/ABC entered a $200 million joint production venture spanning seven years with DreamWorks Television and also initiated Brillstein/Grey Communications alongside Brillstein Entertainment Partners.

In 1995, The Walt Disney Company announced plans to acquire Capital Cities/ABC. This merger between two major companies culminated in the creation of a new subsidiary named ABC, Inc., which was officially established on September 19, 1996.

Organizational Structure Following Disney Acquisition

Previously Owned Stations

  • Stations are organized alphabetically by state and city of license.
  • Stations established and launched by Capital Cities Communications or its predecessors are denoted with two bold asterisks (**).
Capital Cities Communications Owned Stations
Market Area State Station Call Sign Acquisition Year Divestiture Year Additional Information
Fresno California KFSN-TV 1971 1986
Los Angeles California KLAC 1984 1986
KZLA 1966 1984 Formerly KPOL until 1979.
KZLA-FM 1966 1986 Known as KPOL-FM prior to 1978.
New Haven–Hartford Connecticut WTNH-TV 1971 1986
Tampa–St. Petersburg Florida WFTS-TV 1984 1986
Atlanta Georgia WKHX 1985 1986
WKHX-FM 1981 1986
Flint–Saginaw–Bay City Michigan WJRT-TV 1964 1964
Detroit Michigan WJR 1964 1986
WJR-FM 1964 1986 Renamed WHYT in 1983.
Albany–Schenectady New York WROW 1947 1983
WROW-FM ** 1966 1983
WTEN ** 1953 1971 Known as WROW-TV before 1956; WCDA from 1956 to 1957.
Buffalo New York WKBW 1961 1986
WKBW-TV 1961 1986
New York City New York WPAT 1961 1985
WPAT-FM 1961 1985
Durham–Raleigh North Carolina WTVD ** 1957 1986
Philadelphia Pennsylvania WPVI-TV 1971 1986
Providence Rhode Island WPRO 1959 1986
WPRO-FM 1959 1986
WPRO-TV 1959 1967
Fort Worth–Dallas Texas WBAP 1974 1986
KSCS 1974 1986
Houston Texas KTRK-TV 1967 1986
Huntington–Charleston West Virginia WSAZ 1964 1970
WSAZ-TV 1964 1971


Financial results

Annual financial data for Capital Cities/ABC
(Figures for 1994 and 1995 are in millions of U.S. dollars; earlier years are in thousands)
Year Revenue Net earnings
Television/Radio Print Media Aggregate Television/Radio Print Media Aggregate
1983 302,785 459,510 762,295 124,696 104,034 228,730
1984 348,106 591,616 939,722 144,182 133,179 277,361
1985 378,297 642,583 1,020,880 150,970 138,512 289,482
1986 3,153,619 970,755 4,124,374 474,535 158,999 602,678
1987 3,433,749 1,006,597 4,440,346 632,910 146,717 745,990
1988 3,749,557 1,023,896 4,773,453 722,171 129,720 816,029
1989 3,899,898 1,057,405 4,957,394 836,149 130,444 922,512
1990 4,283,633 1,101,969 5,385,602 830,457 132,371 923,215
1991 4,329,743 1,052,246 5,381,989 669,708 122,905 761,233
1992 4,265,561 1,078,566 5,344,127 619,317 136,389 755,706
1993 4.663.215 1.010.438 5.673.653 778.077 125.647 903.724
1994 5.277 1.102.1 6.379.7 1.127 155 1.239
1995 5.727.5 1.151.1 6.878.5 1.164.8 139 1.238.8
From the year 1996 onward Capital Cities/ABC's financial results have been included within Disney Media Networks.

Bibliography

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