Capital Cities/ABC Inc. was an American media company. It was founded in 1985 whenCapital Cities Communications purchased the much larger American Broadcasting Company. It was eventually acquired byThe Walt Disney Company and re-branded itself as Disney–ABC Television Group (nowDisney General Entertainment Content) in 1995.

Capital Cities/ABC Inc.

Formerly	Hudson Valley Broadcasting Company (1946–1959) Capital Cities Broadcasting (1959–1973) Capital Cities Communications (1973–1985)
Company type	Public
Traded as	NYSE: CCB
Industry	Radio broadcasting,television broadcasting,publishing,recording
Predecessor	American Broadcasting-Paramount Theatres
Founded	April 5, 1946; 79 years ago (1946-04-05)
Founders	Hyman Rosenblum Lowell Thomas Frank Smith
Defunct	September 5, 1996; 28 years ago (1996-09-05)
Fate	Acquired and merged intoThe Walt Disney Company
Successor	Disney General Entertainment Content The Walt Disney Company Disney–ABC Domestic Television ABC Owned Television Stations
Headquarters	Albany, New York , U.S.
Key people	Thomas Murphy (chairman andCEO) Daniel J. Burke (president)
Footnotes / references [1]

Capital Cities/ABC Inc. origins trace back in 1946, when Hyman Rosenblum (1911–1996), a localAlbany businessman, and several investors, including future CongressmanLeo William O'Brien and local advertising executive Harry L. Goldman decided to bid for a newradio station license in Albany. Rosenblum was also instrumental in help co-foundingHudson Valley Community College inTroy several years later, when he was on the Board of Trustees from 1953 to 1957 and then became the board's secretary in 1957, holding that position until his death in 1996. The company was incorporated asHudson Valley Broadcasting Company on April 5, 1946^[2] when the company received the license forWROW radio inAlbany, New York. In October 1953, it opened the Albany-Schenectady-Troy area's second television station, WROW-TV on channel 41. In the late fall of 1954, a group ofNew York City-based investors, led by famous radio broadcaster and authorLowell Thomas, bought majority control of Hudson Valley Broadcasting from Rosenblum and associates. Thomas' manager/investing partner, Frank Smith became the President of the company.

In 1956, WROW-TV moved from channel 41 to channel 10 and became WCDA. In 1957, Hudson Valley Broadcasting merged withDurham Broadcasting Enterprises, the owners ofWTVD television inDurham, North Carolina.^[3] The new company took the nameCapital Cities Television Corporation in November 1957,^[2] as both WROW/WCDA (nowWTEN) and WTVD served the capital regions of their respective states. Capital Cities then began purchasing stations, starting withWPRO-AM-FM-TV inProvidence, Rhode Island (another capital city) in 1959.^[4] In December 1959, the company's name was changed toCapital Cities Broadcasting.^[2]

During the 1960s, Capital Cities' holdings grew with the separate 1961 purchases ofWPAT-AM-FM inPaterson, New Jersey, andWKBW radio andWKBW-TV inBuffalo, New York;^[5] and of the Goodwill Stations, which includedWJR-AM-FM inDetroit,WJRT-TV inFlint, Michigan, and WSAZ-AM-TV inHuntington, West Virginia (serving theCharleston capital region), in 1964.^[6] CapCities entered theLos Angeles market in 1966 with its purchase ofKPOL (later KZLA and now the present-day KMPC) and KPOL-FM (later KZLA-FM and nowKLLI).^[7] As a result of the Goodwill Stations purchase, and to adhere toFederal Communications Commission rules limiting ownership ofVHF television stations to five per company, Capital Cities spun off WJRT-TV to Poole Broadcasting, a company owned by former CapCities shareholder John B. Poole.^[8] Poole's own Poole Broadcasting firm would later purchase two other television stations from CapCities: the second was WPRO-TV (nowWPRI-TV) in 1967, coinciding with CapCities' purchase ofKTRK-TV inHouston from theHouston Chronicle in June of that year.^[9][10][11]

In 1968, Capital Cities entered the publishing business by acquiringFairchild Publications, publisher of several magazines includingWomen's Wear Daily.^[12] The following year the firm purchased its first newspaper,The Oakland Press ofPontiac, Michigan.

The following year, the company made another big purchase—acquiring WFIL-AM-FM-TV inPhiladelphia, WNHC-AM-FM-TV inNew Haven, Connecticut (in another capital region), and KFRE-AM-FM-TV inFresno, California fromTriangle Publications, as well as its syndicated television unit Triangle Program Sales.^[13][14] Capital Cities would immediately sell the radio stations to new owners, and, so as to comply with an FCC rule in place then that prohibited TV and radio stations in the same market, but different ownership from sharing the same callsigns, changed the television stations' calls toWPVI-TV,WTNH-TV, andKFSN-TV respectively. The acquisitions of WPVI and WTNH gave them seven VHF stations, two stations over the FCC limit at the time, and WTEN and WSAZ-TV were respectively spun off by CapCities to Poole Broadcasting andLee Enterprises not long after the Triangle purchase was finalized.^[15][16][17] After the sale was consummated, its syndicated unit was renamed to Capital Cities Television Productions (aka Capital Cities TV Productions and Capital Cities Productions). Charles Keller was named general manager of the unit.^[18] WSAZ radio in Huntington was divested to Stoner Broadcasting (it is nowWRVC), also as a result of the Triangle deal.^[19] To reflect the diversity of their holdings, the company changed its name toCapital Cities Communications on May 4, 1973.^[2]

In 1974, Capital Cities boughtWBAP andKSCS-FM inFort Worth, Texas, along with its purchase of theFort Worth Star-Telegram.^[20] The firm also increased its newspaper and publishing holdings during the middle-1970s. In 1974, Capital Cities acquired the Oregon-based Jackson Newspapers chain, which included theAlbany Democrat-Herald, theAshland Daily Tidings, and several other local newspapers and magazines.^{[citation needed]} TheKansas City (Missouri)Star was acquired in 1977, and the following year CapCities boughtTimes Leader ofWilkes-Barre, Pennsylvania.^{[citation needed]}

In 1977, the company was a lead plaintiff in a lawsuit by the owners of Buffalo-based TV stations against theCanadian Radio-television and Telecommunications Commission over that country'ssimultaneous substitution rules. TheSupreme Court of Canadaruled against the broadcasters. From 1978 to 1985, just before it bought ABC, Capital Cities Communications produced a series of family specials distributed through its syndicated unit.^[21]

Returning to broadcasting, WBIE-FM (nowWKHX-FM) inMarietta, Georgia (nearAtlanta, another capital city), was bought in 1981.^[22] WROW radio in Albany, the company's first station, and its FM counterpart (which is nowWYJB) were sold in 1983,^[23] and in 1984 the company made its last pre-ABC-merger purchases withindependent stationWFTS-TV inTampa, Florida^[24] andKLAC radio in Los Angeles (concurrent with the sale of KZLA).^[25]

On March 19, 1985, Capital Cities announced that it would purchaseABC for $3.5 billion, which shocked the media industry, as ABC was some four times bigger than Capital Cities was at the time.Berkshire Hathaway chairmanWarren Buffett helped to finance the deal in exchange for a 25 percent share in the combined company.^[26][27] The deal was, at the time, the largest non-oil merger in world business history.^[28] However, this record would be surpassed by year's end by the merger ofGeneral Electric andRCA (the latter company then being the parent company of rival networkNBC).^[29]

The newly merged company, known asCapital Cities/ABC^[2] (or CapCities/ABC), was forced to sell off some stations due to FCC ownership limits. Between them, ABC and CapCities owned more television stations than FCC rules allowed at the time. Also, the two companies owned several radio stations in the same markets.^[30] Of the former Capital Cities television stations, the new company opted to keep the outlets in Philadelphia, Houston, Durham, and Fresno. WFTS and ABC'sWXYZ-TV in Detroit were divested as a pair to theE. W. Scripps Company's broadcasting division (then known as Scripps-Howard Broadcasting). WTNH and WKBW-TV were sold separately to minority-owned companies;^[31] WKBW-TV would eventually be acquired by E.W. Scripps by 2014. WTNH would have been sold in any event due to a significant signal overlap with ABC flagshipWABC-TV inNew York City. At the time, the FCC normally did not allow companies to own two television stations with common coverage areas (known commonly as the "one-to-a-market" rule), and would not even consider granting a waiver for a city-grade overlap.

The merged company could have been forced to sell off WPVI as well due to a large Grade B signal overlap with WABC-TV. CitingCBS' ownership of television stations in New York City (WCBS-TV) and Philadelphia (at the timeWCAU-TV) undergrandfathered status, Capital Cities/ABC requested, and was granted a permanent waiver from the FCC allowing it to keep WPVI-TV. Had the waiver request been denied, WXYZ-TV would have been retained.

WPVI-TV and KTRK-TV had long been ABC affiliates (in fact, two of ABC's strongest affiliates), while WTVD and KFSN-TV, longtime CBS affiliates, respectively switched to ABC in August and September 1985.

On the radio side, new owners were found for CapCities' WPAT stations (Park Communications was the buyer), WKBW (Price Communications, the new owner, changed its call letters toWWKB, which was necessitated due to an FCC regulation in effect then that forbade TV and radio stations in the same city, but with different owners from sharing the same call letters) and KLAC and KZLA-FM (to Malrite Communications), and ABC'sWRIF-FM in Detroit (to a minority-owned concern), among others.^[32]

The merger was completed on January 3, 1986. Capital Cities/ABC retained ABC's radio and television combinations in New York City (WABC, WABC-TV andWPLJ), Los Angeles (KABC,KABC-TV andKLOS),Chicago (WLS,WLS-FM andWLS-TV), andSan Francisco (KGO andKGO-TV), along withWMAL andWRQX-FM inWashington, D.C.; CapCities' aforementioned television outlets and the Detroit, Providence, Marietta and Fort Worth radio stations; Fairchild Publications; theFort Worth Star-Telegram and theKansas City Star; and other broadcasting and publishing properties.^[12] Orbis Communications immediately purchased the syndication rights to the Capital Cities production library.^[33] The library was then leased to pay cable channelHBO for two years for itsFamily Specials library of 26 titles.^[34]

In May 1991, Capital Cities/ABC's Farm Progress Cos. closed its purchase ofHarcourt Brace Jovanovich Inc.'s 12-magazine farm publishing group.^[35] In 1992, Capital Cities/ABC soldWord Inc.'s music and book publishing toThomas Nelson.^[36] In 1992, ABC launched its newhome video unit ABC Video, which was headed by formerVestron Video employee Jon Peisinger.^[37] In February 1993, the company formed a television production joint venture withBrillstein-Grey Entertainment to tap into their managed talent and to take advantage of relaxed production regulations.^[38][39] In July, CC/ABC purchased a majority ownership in animation studioDIC Animation City, forming a joint venture called DIC Entertainment L.P.^[40] Later in July, CC/ABC reorganized into 4 groups, ABC TV Network Group, CC/ABC Publishing Group, the CC/ABC Broadcast Group, and a newly formed CC/ABC Multimedia Group overseeing the network, magazines & newspapers, stations and new technology & miscellaneous operations respectively. Network Group presidentBob Iger was also promoted to executive president of CC/ABC.^[41] Also in 1993, ABC launched a new video line Signet Video,^[42] which were designed to release feature films for theatrical release or telemovies.^[43] It was subsequently changed its name to Summa Video, and signed a deal withParamount Home Video to handle distribution of the titles.^[44]

In 1994, CC/ABC agreed to a $200 million seven-year televisionproduction joint venture with theoriginal DreamWorks live-action studio.^[45] Also that year, CC/ABC formed a partnership withBrillstein/Grey Entertainment to launch Brillstein/Grey Communications.^[46]

The Walt Disney Company announced that it would acquire Capital Cities/ABC in 1995.^[47][48] Thismerger of equals led to the formation of a new subsidiary, ABC, Inc., on September 19, 1996.

• ABC Television Network Group
  • ABC News
  • ABC Sports
  • ABC Entertainment
  • ABC Daytime
  • ABC Children's Programming
• CC/ABC Broadcasting Group
  • ABC Radio Network
  • eight TV stations
  • 21 radio stations
• ABC Cable and International Broadcast Group
  • ESPN Inc. (80%)
    • Eurosport (33.3%, England)
    • TV Sport (10%, France; Eurosport affiliate)
    • TheJapan Sports Channel (20%)
  • A&E Television Networks (37.5%)
  • Lifetime Television (50%)
  • Tele-Muchen (50%, Germany)
    • RTL2 20%
  • Hamster Productions (33%, France)
• DIC Entertainment (Limited Partnerships withAndy Heyward)
  • DIC Entertainment, L.P. (100%)
  • DIC Productions, L.P. (95%)
  • Scandinavian Broadcasting System (23%, Luxembourg)
• CC/ABC Publishing Group
  • Fairchild Publications
  • Chilton Publications
  • multiple newspapers from a dozen dailies and more weeklies
    • Ft. Worth Star-Telegram
    • The Kansas City Star
    • Belleville News-Democrat
    • Times Leader
    • Pacific Northwest Group^[49]
      • Albany Democrat-Herald
      • Ashland Daily Tidings
      • The Sandy Post
      • Lebanon Express
      • Cottage Grove Sentinel
      • The Outlook
      • News-Times (Newport)
    • The Oakland Press^[50]
  • dozens more publications in the fields of business and law trade journals
  • Farm Progress
  • Los Angeles Magazine
  • Institutional Investor
• CC/ABC Multimedia Group^[51]
  • Creative Wonders (Joint-venture withElectronic Arts)

• Stations are arranged in alphabetical order by state andcity of license.
• Two boldface asterisks appearing following a station's call letters (**) indicate a station built and signed on by Capital Cities Communications or a predecessor.

• Hagstrom, Robert G. (1994–1997).The Warren Buffett Way: Investment Strategies of the World's Greatest Investor.John Wiley & Sons.ISBN 0-471-17750-4.