Tribune Co. Agrees to Buy KTLA-TV

Tribune Co., the Chicago-based media concern, said today that it agreed to buy KTLA-TV in Los Angeles for $510 million in cash, a deal that would be the biggest ever for a single broadcast station.

The price surpasses the previous high of $450 million that Hearst Corp., another media concern, tentatively agreed to pay for WCVB-TV in Boston last week. Hearst agreed to buy WCVB from a corporation being formed by publisher Rupert Murdoch and oilman Marvin Davis to buy seven TV stations owned by Metromedia Inc.

Tribune Co. said the purchase agreement with Golden West Television Holding Co., owners of the non-affiliated KTLA, is expected to be completed by the end of the year. The deal is subject to approval by the Federal Communications Commission.

Divestiture Possible

The company said that because of FCC rules on media ownership in single communities, it might have to sell the Los Angeles Daily News and two cable television systems in the Los Angeles area.

John Madigan, executive vice president, said the company had not yet talked to FCC officials and so had made no decision on selling those operations. He would not comment on whether the company might ask for a waiver of the rule.

The Los Angeles newspaper has a daily circulation of about 145,000 and the two cable systems have just under 40,000 subscribers.

Tribune Co., whose properties include the Chicago Tribune and New York Daily News newspapers and the Chicago Cubs baseball team, currently owns independent television stations in New York, Chicago, Atlanta, Denver and New Orleans.

19.6% Coverage

It said the Los Angeles acquisition would expand its broadcast coverage from 14.5% of the nation’s households with televisions to 19.6%.

Madigan said that would put Tribune Co. behind only CBS, NBC, ABC and the Metromedia stations in market penetration. He said the acquisition would rank Tribune Co. fourth in terms of revenues behind the major networks.

Jim Dowdle, president of Tribune Broadcasting, said the Los Angeles acquisition would enhance the company’s ability to develop new programming by giving Tribune Co. stations in the nation’s three biggest cities. He said, however, that he doubted Tribune Co. would want to try to develop into a fourth TV network. He said he was skeptical that would be possible for any media company.

Madigan said KTLA was sold in 1983 for about $245 million to Golden West, a group led by the investment firm of Kohlberg Kravis Roberts & Co. of New York and the station’s management.