Paxson Posts Loss, Says It Will Buy 9 Stations

Paxson Communications Corp. reported a wider net loss for the third quarter and said it agreed to buy nine TV stations for up to $173 million from DP Media Inc., which is owned by family members of Paxson Chairman Lowell Paxson. West Palm Beach, Fla.-based Paxson Communications, which broadcasts family entertainment on the Pax TV network, had a loss of $129.8 million, or $2.10 a share, in the latest quarter, compared with a loss of $53 million, or 87 cents, a year ago. Revenue jumped 97% to $58.1 million. The company’s cash-flow loss narrowed to $16 million from $30.9 million. After acquiring the nine stations, all on the East Coast and Midwest, Paxson will have stations in 43 of the 50 biggest markets. Eight of the DP Media stations are Pax TV network affiliates. Shares in Paxon, which is 32% owned by General Electric Co.’s NBC network, closed up $1.13 at $11.38 on the American Stock Exchange. The acquisitions were announced after the close of regular U.S. trading. When NBC paid $415 million for its 32% stake in Paxson Communications in September, Paxson said it would use the money for acquisitions.