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By Gerald M. Gay, The Arizona Daily Star, Tucson
Jun. 5--The Federal Communications Commission has granted a waiver giving the Journal Broadcast Group permission to buy local CW affiliate KWBA from the Cascade Broadcasting Group -- even though the deal creates a television "duopoly" in Southern Arizona.
Under FCC guidelines, two television stations licensed in the same Designated Market Area may not have the same owner -- what the FCC calls a duopoly -- unless at least one of the stations is not ranked among the top four stations and there are at least eight other independently owned and operated full-power commercial and non-commercial TV stations in the area.
Since Milwaukee-based Journal already owns the local ABC affiliate KGUN, its purchase of KWBA would leave the Tucson-Sierra Vista market area with fewer than eight other stations.
But the FCC granted a waiver in this instance, declaring KWBA (Channel 58/cable Channel 8) a "failing station" that has been "struggling for an extended period of time both in terms of audience share and financial performance."
According to a report released Monday by the FCC, between February 2005 and November 2007, KWBA's all-day audience shares averaged 1.9 and were never higher than a 3 share, a decline attributed to the KWBA's loss of Arizona Diamondbacks programming.
The report says that KWBA's "financial posture has been worsening during that time" and that the station has been "monetizing most of its major available assets, including the station's building and all spare equipment," as well as "deferring payments of various liabilities and obligations to sustain its continued performance."
The report stated that Cascade retained the media brokerage and investment banking firm Patrick Communications to sell the station and, after looking at 35 prospective buyers, received only the offer from the Journal Broadcast Group.
Journal said KWBA will be using the same facilities as KGUN, according to the report, and the station would initiate a 30-minute weekday newscast.
It will also heighten KWBA's community outreach efforts, including the station in holiday food drives and other KGUN-sponsored events.
KWBA general manager Andrew Stewart estimates the sale will be finalized within the next 30 to 60 days.
--Contact reporter Gerald M. Gay at 573-4137 or ggay@azstarnet.com.
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