Taft Agrees to Buy 5 TV and 7 Radio Stations

Taft Broadcasting Co. said Friday that it has reached an agreement to buy five television stations and seven radio stations from Gulf Broadcast Co. of Dallas for $755 million.

Taft said that it expects to complete the deal late this year, with approval of the Federal Communications Commission and Gulf stockholders.

The deal is being financed through a group of banks led by Bank of New York, Taft said.

Taft is acquiring television stations WTSP in Tampa, Fla.; KTSP in Phoenix; WGHP in Winston Salem, N.C.; KTXA in Dallas, and KTXH in Houston.

The radio stations are WKLS-AM and WKLS-FM in Atlanta, KTXQ-FM in Dallas, KLTR-FM in Houston, WNDE-AM and WFBQ-FM in Indianapolis and WLTT-FM in Washington.

The agreement also gives Taft the option of buying KTSP television in Phoenix if undisclosed conditions are met.

Strong Growth Markets

“These television and radio stations will be strategically important to us,” President Dudley Taft said. “They move us more extensively into the strong growth markets of the South and Southwest.”

He said that the acquisition will dramatically increase Taft’s potential audience.

“Taft television stations will now reach 15% of the nation’s television households, as compared with the 9% we reach with our current seven stations,” he said.

Taft Broadcasting sold most of its amusement park ventures a year ago to concentrate on developing its broadcast base under recent changes in FCC regulations.

The new regulations permit ownership of up to 12 AM and 12 FM radio stations and, as of April 2, up to 12 television stations.

Taft currently owns seven television and 13 radio stations.

“As we stated when we sold our domestic theme parks a year ago, Taft’s strategic plan is to concentrate its resources on the expansion of our communications operations, especially television and radio broadcasting,” Taft Chairman Charles Mechem said.

“Now, in a single transaction, we are able to take a major step in that direction.

“Additionally, and importantly, this acquisition clearly states Taft’s intention to be a leader in the broadcasting industry, which currently generates more than $20 billion in annual revenues,” he said.