Metromedia

Metromedia, Inc. was an American communications and entertainment company active principally from 1956 until 1997. It originated after the collapse of the DuMont Television Network, when DuMont Laboratories separated the network's remaining owned-and-operated stations into DuMont Broadcasting Corporation. The new company initially controlled WABD in New York and WTTG in Washington, D.C., giving it a foundation in television broadcasting independent of the major national networks. In 1957 the company acquired New York radio stations WNEW and WHFI and soon changed its corporate name to Metropolitan Broadcasting Corporation. Investor John W. Kluge acquired control from Paramount Pictures and became the company's defining owner and chairman. In 1961 the company adopted the Metromedia name, while its broadcasting division continued to use the Metropolitan Broadcasting designation for several years. During the 1960s and 1970s Metromedia assembled a large portfolio of independent television and radio stations in major American markets, including New York, Los Angeles, Philadelphia, Kansas City, Dallas, Houston, Boston, Cleveland, Chicago, Detroit, Minneapolis, Cincinnati, and other cities. The company also diversified into outdoor advertising through Foster & Kleiser, live entertainment through the Ice Capades and Harlem Globetrotters, television production and syndication through Metromedia Producers Corporation, recorded music through Metromedia Records, and studio operations at Metromedia Square in Los Angeles. Metromedia's stations were particularly important because they operated outside the traditional CBS, NBC, and ABC network structure. Its production and syndication activities supplied programs to independent stations, including The Merv Griffin Show and Truth or Consequences. The company also explored the creation of a coordinated national programming and news service for independent stations, although its proposed MetroNet system and planned national newscast did not become lasting businesses. The company reached a late broadcasting peak with its 1982 acquisition of Boston station WCVB-TV, reportedly the largest single-station television purchase at that time. In 1984 Kluge took Metromedia private. In 1985 he agreed to sell the television stations and Metromedia Producers Corporation to News Corporation and 20th Century Fox for approximately $3.5 billion. The transaction closed in 1986. Most of the stations became the foundation of Fox Television Stations when the Fox Broadcasting Company launched in October 1986; WCVB-TV was separately sold to Hearst. Metromedia's radio assets were spun off and subsequently sold, while its later corporate identity became increasingly associated with film and international investments. The company acquired a substantial interest in Orion Pictures between 1986 and 1988 and gained control of the studio. In the 1990s it combined Orion, MCEG Sterling Entertainment, Actava, and other assets under Metromedia International Group, and later acquired Motion Picture Corporation of America and The Samuel Goldwyn Company. In 1997 it sold Orion, Goldwyn, and MPCA to Metro-Goldwyn-Mayer for $573 million and closed down its remaining principal media operations. Businesses associated with the broader Metromedia group, including restaurant and telecommunications ventures, continued separately for periods afterward, but the original Metromedia media company ceased to operate as an independent enterprise.

Metromedia emerged from the remnants of the DuMont Television Network. DuMont had been one of the earliest commercial television networks in the United States, but it struggled against the stronger national distribution and financial resources of ABC, CBS, and NBC. After DuMont ended network operations in 1956, its remaining owned-and-operated stations, WABD in New York and WTTG in Washington, D.C., were separated from DuMont Laboratories and transferred to shareholders through DuMont Broadcasting Corporation. The new company expanded rapidly beyond its initial television base. It bought WNEW and WHFI in the New York area in 1957 and adopted the name Metropolitan Broadcasting Corporation. John W. Kluge acquired control soon afterward, eventually building a dominant ownership position. The company became Metromedia in 1961, a name that reflected its broader ambitions in broadcasting and related media. Throughout the 1960s Metromedia purchased television and radio properties across the United States. Its acquisitions included stations in Cleveland, Philadelphia, Stockton, Peoria, Decatur, Kansas City, Los Angeles, and other markets. It also entered outdoor advertising, live entertainment, and studio production. The acquisition of the Ice Capades in 1963 and the Harlem Globetrotters in 1967 gave the company nationally recognizable entertainment properties. In Los Angeles, Metromedia developed Metromedia Square as a production facility and operated Metromedia Producers Corporation, a production and distribution business descended in part from Wolper Productions. Metromedia's programming arm produced or syndicated television programs, including The Merv Griffin Show and Truth or Consequences. The company also experimented with music through Metromedia Records, which released records by artists including Bobby Sherman and Peter Allen before the label closed in 1974. A proposed station-linking service called MetroNet was developed with Ogilvy & Mather in 1976, but advertisers resisted its pricing and limited national reach. A separate plan for a national independent-station newscast also failed to reach the air. The company continued acquiring stations in the 1970s and early 1980s, including properties in Dallas, Houston, and Boston. Its 1982 purchase of WCVB-TV was a landmark transaction in the television industry because of the size of the price paid for one station. Kluge took Metromedia private in 1984, and the following year negotiated the sale of the television group and production subsidiary to News Corporation and 20th Century Fox. The sale closed in 1986. Except for WCVB-TV, which went to Hearst, the stations became the nucleus of Fox Television Stations when the Fox network launched. Metromedia's radio operations were separated into a successor company and later sold. The company then shifted toward film and international investments. It accumulated a controlling position in Orion Pictures, acquired additional entertainment companies, and in the mid-1990s reorganized these holdings through Metromedia International Group. Its film assets included Orion, The Samuel Goldwyn Company, and Motion Picture Corporation of America. In 1997 these assets were sold to MGM for $573 million. Metromedia closed on July 10, 1997. Related businesses, including restaurant and fiber-network operations, survived for varying periods under related corporate structures, but the original broadcasting and entertainment enterprise no longer existed.

1. 1997Film assets sold and company closed

   MGM purchased Metromedia's principal film assets, and Metromedia closed in July.

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2. 1988Orion control obtained

   Metromedia increased its Orion Pictures holding to a controlling position.

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3. 1986Broadcasting assets sold

   The sale of Metromedia's television and production assets to News Corporation and 20th Century Fox was completed.

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4. 1984Kluge takes the company private

   John Kluge bought out Metromedia's shareholders and removed the company from public ownership.

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5. 1982WCVB-TV acquired

   Metromedia bought Boston station WCVB-TV for $220 million, then a record price for a single television station.

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6. 1967Harlem Globetrotters acquired

   Metromedia added the Harlem Globetrotters to its live-entertainment portfolio.

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7. 1963Expansion into Los Angeles and live entertainment

   Metromedia acquired KTTV and related Los Angeles radio assets and purchased the Ice Capades.

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8. 1961Metromedia name adopted

   The corporation adopted the Metromedia name as it expanded its broadcasting and entertainment activities.

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9. 1957Metropolitan Broadcasting is established

   The company acquired New York radio stations and changed its name from DuMont Broadcasting Corporation to Metropolitan Broadcasting Corporation.

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10. 1956DuMont stations are spun off

    After the DuMont Television Network ceased operations, WABD and WTTG were placed in DuMont Broadcasting Corporation.

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A diversified, owner-led media group centered on large-market independent television and radio stations, later expanded into syndicated programming, film, live entertainment, advertising, and international communications.

• Metromedia television stationsTelevision broadcasting1956

  Metromedia owned independent television stations in major American markets, including New York, Los Angeles, Washington, Boston, Dallas, Houston, and Kansas City. These stations supplied locally produced news, entertainment, syndicated programs, and advertising outside the established national networks. Most were sold to News Corporation and became the foundation of Fox Television Stations.

• Metromedia Producers CorporationTelevision production and syndication1968

  Metromedia Producers Corporation produced and distributed programming for television stations, including game shows, talk shows, and television movies. Its best-known associated programs included Truth or Consequences and the 1972–1986 version of The Merv Griffin Show. The unit was sold with Metromedia's television stations and folded into 20th Century Fox Television.

• Orion PicturesFilm and television studio1986

  Metromedia built a controlling interest in Orion Pictures during the late 1980s. Orion formed the center of Metromedia's later film strategy and was eventually combined with other entertainment assets, including The Samuel Goldwyn Company and Motion Picture Corporation of America, before being sold to Metro-Goldwyn-Mayer.

• Metromedia RecordsRecorded music1969

  Metromedia Records was the company's record label, launched during its diversification into music. Bobby Sherman was its biggest-selling artist, and the label released early albums by Peter Allen. The label ceased operations in 1974.

• Metromedia SquareTelevision studio facility

  Metromedia Square was Metromedia's Los Angeles television production center. It served as a studio base for network and syndicated programs and supported the company's production and distribution activities.

• 1976MetroNet

  United States

  Metromedia and Ogilvy & Mather proposed linking independent television stations through a shared schedule of dramas, serial programming, and variety content.

  Outcome. The proposal failed after advertisers objected to its rates and limited national coverage.

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• 1997Sale of film assets to MGMM&A

  Metromedia consolidated its film holdings under a broader international investment structure.

  What changed. The company sold Orion/Goldwyn and Motion Picture Corporation of America to Metro-Goldwyn-Mayer.

  Aftermath. The transaction completed Metromedia's exit from its principal film operations, and the company closed in July 1997.

  Transaction value. (1997)

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• 1988Acquisition of control of Orion PicturesM&A

  After selling its broadcasting assets, Metromedia shifted toward film and entertainment investments.

  What changed. The company acquired additional Orion shares and purchased Sumner Redstone's stake, obtaining majority ownership.

  Aftermath. Orion became a central asset in Metromedia's later film holding structure.

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• 1985Sale of television and production assetsM&A

  Metromedia's owner decided to exit large-scale television ownership after the company had built one of the United States' largest independent-station portfolios.

  What changed. Metromedia agreed to sell its television stations and Metromedia Producers Corporation to News Corporation and 20th Century Fox.

  Aftermath. Most stations became the foundation of Fox Television Stations, while WCVB-TV was sold separately to Hearst.

  Transaction value. (1985)

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• 1989Winchell-Mahoney Time tape disputeControversy

  Paul Winchell alleged that KTTV destroyed videotapes of his children's program in retaliation for litigation over the program's rights. A court awarded him nearly $18 million.

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• 1983Christine Craft discrimination lawsuitControversy

  Former KMBC-TV anchor Christine Craft alleged fraud and sex discrimination after being demoted following a focus-group assessment of her appearance and on-air manner. She initially prevailed, but the judgment was overturned on appeal.

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• 1997Metromedia sells Orion and related film assets to Metro-Goldwyn-Mayer

  Metromedia sold Orion/Goldwyn and Motion Picture Corporation of America to MGM and closed its remaining principal media operations.

  M&A
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• 1988Metromedia increases control of Orion Pictures

  Metromedia acquired additional Orion shares and Sumner Redstone's interest, obtaining majority control of the film studio.

  M&A
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• 1986Former Metromedia stations become the foundation of Fox Television Stations

  After the transaction closed, most of Metromedia's former television stations formed the core station group supporting the launch of the Fox Broadcasting Company.

  M&A
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• 1985Metromedia agrees to sell television stations to News Corporation and 20th Century Fox

  John Kluge announced the sale of Metromedia's television stations and Metromedia Producers Corporation to News Corporation and 20th Century Fox for approximately $3.5 billion.

  M&A
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1. Metromedia