Evening star., 1953-02-10
ABC and Paramount
Merger 10 Furnish
Better " Shows

The Federal Communications
Commission yesterday approved
the merger of United Paramount
TheaterS, Inc. and American
Broadcasting Co., combining two
large entertainment firms in
separate fields.
The consolidation had been
urged as q means Of offering
more competition for broadcast
ing networks operated by the
National Broadcosting Co. and
the Columbia Broadcasting Sys-
TEN.
The FEC order creates a new
company-American Broadcast
ing-Paramount Theaters, Inc.
It will operate coast-to-coast
motion picture houses and ra-
dio and televiSion networks.
Little change is expected in
the physical operation Of the
new firm, as compared with the
operations separately. No COM
bination of movies and television
Is contemplated.
Firmer Financial Footing.
However, the merger will pro-
vide a f1rmer financial footing
for ABC, giving it more money
for investing in programming
and attracting sponsors.
Robert Kintner, president
of ABC, who will continue as
president of the ABC division
of the merged companies prom
ised new programming and
new techniques for both radio
and television."
I'VE will explore particularly
certain program fields where we
consider ABC underdeveloped,
namely. situation comedy, gen.
eral comedy and dramatic pres
entationS," ne said.
officials. of WMAL and
WMAL-TV. afiliates of ABC,
hailed the decision. They said
eventually it will mean better
network programs, and may
mean more programming will
originate in Washington, because
more money will be available.
I'VE are delighted to hear
about it." said Kenneth H.
Berkeley. general manager of
The Evening Star Broadcasting
Co Il don't think there is any
doubt but that the integration
OF the two will mean great
progress"
Merger of 2 "OrphanS."
The merger is one of two or
phans. United Paramount Thea
ters was split from it's parent
firm, Paramount Pictures, Inc,
in an antitrust suit, and ABC
was separated from NBC in an
FEC ruling in 1943.
United Paramount operates
ITO movie theaters and one tele-
vision station in 297 cities. Be-
cause FEC permits ownership of
only one TV station in a COM
munity, United Paramount's
Chicago station will be sold to
CHS for S6 million.
ABC owns five standard radio,
five FM radio ana five TV sta
tions in New York. Detroit. Chi
cago, San Francisco and LoSaAn- /
geles. 1t also opeEates stand
ard radio network, with 353 af-
f1liates. and a TV network of rs
stations.
Leonard GoldenSon, president
of United Paramount, will be
president of the new company.
E. j. Noble, board chairman and
majority Stockholder of ABC, will
be finance chairman.
New Stock to Be Issued.
To carry out the consolidation,
Paramount stock will be issued to
ABC stockholders in exchange
for present holdings. Assets of
United Paramount are about $113
million and those of ABC about
$31 million.
Five months of hearings were
held. resulting in $4,000 pages of
testimony and some $50 exhibits.
These ended abruptly last July
8 on motions by interested
parties for a speedy decision.
A final oral hearing was held
on January 5.
There is possibility that the
FCC's decision will be appealed.
During the hearings, the merger
was opposed by the Dumont Co.,
which operates a television net
work. William A. Roberts, the