Paxson Resigns; NBC Steps Up

[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins & John Eggerton]
Since 1999, NBC has had a major investment in Paxson Communications, the parent of the PaxTV broadcast network and many, many TV stations around the US. The often bumpy relationship between the two companies took another turn Monday when Bud Paxson stepped down as Chairman/CEO and agreed to sell his controlling stake in Paxson to NBC. Brandon Burgess, executive VP of business development, has resigned from NBC Universal to take over as CEO of Paxson, and to become a director of that company. Paxson is in tough financial straights and the new deal doesn't really help. Because of media ownership caps, NBC can't take over all of Paxson's TV stations. The power of Paxson lies in its digital broadcast capacity. To most people, Paxson is largely an infomercial station. But Burgess sees a distribution path into 90 million analog homes through must-carry and retransmission agreements with cable and DBS operators. When digital television is universal, that single channel in 90 million homes could become four to six channels. Paxson has obviously had problems programming even one channel, but Burgess suggests that outside programmers might ultimately partner with Paxson or lease capacity. "I think people have figured out that launching digital networks is harder than expected," Burgess says.
http://www.broadcastingcable.com/article/CA6281623?display=Breaking+News&referral=SUPP
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* Paxson Out as NBC U Nears Control
http://www.multichannel.com/article/CA6281685.html?display=Breaking+News

* Paxson Founder Resigns as CEO; New NBC Universal Pact Is Set
http://online.wsj.com/article/SB113137154238690012.html?mod=todays_us_marketplace

* Deal Brings an End to NBC-Paxson Feud
http://www.nytimes.com/2005/11/08/business/media/08paxson.html?pagewanted=all
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