Murdoch to Seek U.S. Citizenship, FCC Told

Australian publisher Rupert Murdoch told Federal Communications Commission officials Friday that he will seek U.S. citizenship to clear the way for his investment in six of the seven TV stations owned by Metromedia Inc., including KTTV-Channel 11 in Los Angeles.

Murdoch, accompanied by Metromedia Chairman John W. Kluge, met with four of the five FCC commissioners Friday to outline his plan to acquire the stations in a business venture with Denver oilman Marvin Davis, according to Commissioner James H. Quello.

Murdoch, through his 46%owned News Group Publications Inc., last month acquired a 50% stake in 20th Century Fox Film from the Davis family, which retains the other half. But Murdoch and Davis apparently have not decided whether the acquiring entity “is going to be Fox or a special company,” Quello said in a telephone interview.

Limits on Stock Ownership

Although Murdoch has not commented on reports of his Metromedia negotiations this week, the publisher told The Times last year that he did not plan to expand his newspaper holdings in the United States, instead preferring to move into entertainment and other communications media.

Murdoch’s citizenship is at issue because federal law severely limits a foreigner’s ability to own stock in broadcast properties. Quello said that Murdoch told him that he has spent “most of the last 11 years in America” and left Quello with the impression that he has already begun the process of meeting citizenship requirements.

To comply with FCC rules, Murdoch also must resolve cross-ownership problems posed by his newspaper holdings in three of the cities where Metromedia owns stations: Boston, Chicago and New York.

The Times learned Friday, however, that Metromedia is discussing the sale of its Boston station, WCVB-TV, to Hearst Broadcasting Group. Until 1982, an affiliated Hearst company owned the Boston Herald American newspaper, but Hearst sold the publication to Murdoch that year.

Talks Are ‘In Progress’

According to an Associated Press report, Murdoch left at least one unidentified FCC official with the impression that he would sell his newspapers in New York and Chicago to win the TV licenses.

But the only statement issued Friday by a public relations company on Murdoch’s behalf said that “negotiations are in progress among Metromedia, Rupert Murdoch, News America (a Murdoch-controlled company), Marvin Davis and 20th Century Fox concerning the possible transfer of certain Metromedia properties. Until negotiations are concluded, no further statements will be made.”

Metromedia, headquartered in Secaucus, N.J., was converted to private ownership last year by a Kluge-led group. The leveraged buy-out added about $1.3 billion in debt to the company’s books, and some analysts have speculated that the company was concerned about making future interest payments.

Quello said Friday, however, that Kluge--a 40-year acquaintance--said he wants to sell the stations to concentrate on Metromedia’s cellular radio business.