Chris-Craft Acquisition Could Kill UPN

Cable World, August 21, 2000 by K.C Neel

United Paramount Network might be dead now that News Corp. has trumped Viacom's effort to buy Chris-Craft Industries' 10 broadcast stations.

News Corp. chairman Rupert Murdoch says he'll entertain talks about continuing to carry the fledgling netlet on the Chris-Craft stations. Most watchers don't believe News Corp. will end up carrying the stations for long or in very many places.

Still, don't count UPN - soon to be renamed Paramount Network - out yet. Lurking on the sidelines is Barry Diller's USA Networks. Diller has been transforming his stable of broadcast stations from their current format of home shopping to general entertainment vehicles. Diller could get together with Viacom chairman Sumner Redstone and cut a deal whereby Viacom could use Diller's broadcast stations to deliver UPN programming. The key to UPN's future wilt be whom Redstone wants to work with more: Differ or Murdoch.

A deal with Oilier would be somewhat ironic for both men. The executives have jockeyed for power and fought over assets for years. Redstone wrestled Paramount Communications from Diller's grip seven years ago during a heated and expensive bidding war. A partnership between the two companies would also result in Diller getting his hands back on World Wrestling Federation programming lost to Redstone earlier this summer. UPN televises a weekly, highly rated WWF show.

News Corp. execs said last week that some TV stations will be divested to comply with FCC guidelines. Others may be swapped so the company can control two stations in one market.