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Detroit Free Press

By John Smyntek, Detroit Free Press

Feb. 16--The end of the WB Network in the fall has at least delayed -- and perhaps ended -- Granite Broadcasting's deal to sell Detroit's WDWB-TV (Channel 20).

AM Media, a unit of Washington-based private equity firm Acon Investments, agreed to pay at least $180 million -- some reports pegged the price at $200 million -- for Granite's WB affiliates in Detroit and San Francisco last year. Granite reportedly paid $175 million for the Detroit station alone in 1996.

But when the WB and CBS announced a new network called the CW featuring shows from the WB and CBS-controlled UPN in January, Detroit's WDWB was left without a network affiliation -- plus the need to reimage itself including a change of its WB-oriented call letters, logos and Web addresses.

But the trade journal Broadcasting & Cable reported Wednesday, "It's not clear what the financial damage from losing a WB affiliation may be, but the uncertainty was enough to back AM Media off the deal."

It also quoted Granite Chairman Don Cornwell saying that, technically, the sale agreement remains in place, but Granite has been freed to shop the stations to others. Detroit WB20 chief Sarah Norat-Phillips did not return an inquiry Wednesday.

Broadcasting & Cable reported Cornwell would not say if AM Media attempted to negotiate a lower price or is balking at completing the deal at all. But Cornwell says that, as soon as the creation of the CW was announced, he began receiving other inquiries about the stations from potential buyers who weren't interested in network affiliations.

"We need to be able to respond to people," Cornwell told the trade site, saying he still expects to sell the stations but is also prepared to operate them as independents. That was something Norat-Phillips confirmed when the WB/UPN/CW deal was announced.

One possible option for both programming and ownership is a new service in the works from Fox, owner of Detroit's WJBK-TV (Channel 2). Broadcast trades have reported Fox Television Stations CEO Jack Abernethy recently told the group's general managers that Fox is looking at starting a new national program service that would emphasize novellas -- prime-time soap opera-like pop dramas of 13-weeks' duration -- rather than $2 million-a-week dramas and expensive sitcoms.

Fox alone has nine owned stations that were left network-less in the WB/UPN/CW deal now looking for programming.

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