Murdoch Plans to Sell Boston TV Station : Unsure FCC Will Keep Waiving Ownership Rule

Rupert Murdoch said Thursday that he plans to sell Boston television station WFXT Channel 25 even though last month he won a temporary victory in his effort to keep both the station and his Boston newspaper, the Herald.

The media conglomerate owner said he is looking for a buyer because it is uncertain whether the Federal Communications Commission will continue to waive rules prohibiting such ownership of two media properties in the same market. Murdoch said in a statement that the tiny non-network station had also “suffered as a result of a regulatory cloud” created by a federal law that would have forced him to divest one or the other property.

The law, sponsored by Sens. Ernest F. Hollings (D-S.C.) and Edward M. Kennedy (D.-Mass.), had sought to end the FCC waivers granted to Murdoch. But a federal appeals court in Washington struck down the measure last month, saying it was directed “like a laser beam” at Murdoch alone and was thus unconstitutional.

The Kennedy-Hollings amendment stirred wide controversy because it also forced Murdoch’s News America Corp. to sell either its tabloid New York Post or its New York television station, WNYW Channel 5. Murdoch sold the Post to developer Peter S. Kalikow for $37 million.

Analysts said Murdoch may have decided to sell WFXT in Boston in part because it is easier to sell a television station than a second-ranked newspaper. The New York investment banking firm Allen & Co. will manage the sale.

Charles G. Crane, an analyst with Prudential-Bache Securities in New York, noted that Murdoch had “dozens” of inquiries about the station when the bill brought the issue to public attention. Crane speculated that Murdoch will probably be able to get about $38 million for the station, though he said the outlet is not currently profitable.

Fifth in Market

WFXT, formerly a Christian broadcast station, was tied for fifth in the Boston market during the February ratings period, according to A. C. Nielsen Co. For the period from 6 a.m. to midnight, WFXT received a 1 rating (equivalent to 35,000 households) and a 4 share, Nielsen said. Each share point represents 1% of the TV audience tuned in at any moment.

The Herald, a distant second in competition with the Boston Globe, is profitable and has a circulation of 355,000, according to News America Corp. The newspaper’s circulation was 245,000 when Murdoch bought the paper in 1982.

Peter Appert, analyst with the Cyrus J. Lawrence investment firm, said Murdoch may also want to keep the Herald because it is one of his last newspapers in the United States, along with the San Antonio Express-News. “He started out as a newspaper owner, and he may want to keep some newspaper presence here,” he said.

Murdoch sold the Chicago Sun-Times newspaper in July, 1986.