Granite Suing Over Two WB Affils

GRANITE SUING OVER TWO WB AFFILS
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
After seeing sales for two of its WB stations fall through in the wake of The WB and UPN shutdowns, Granite Broadcasting is suing The WB and CBS Corp, co-owners of The CW, for breach of contract and unspecified damages. The suit, filed in the Court of the Chancery in Delaware, alleges that WB breached the affiliation agreements for Granite's WDWB Detroit and KBWB and negotiated in bad faith when Granite signed affiliation renewals last September. Those extensions, Granite says, were key to its $180 million deal to sell the two stations. That deal, to AM Media, fell through after WB and CBS announced in January that WB and UPN would shut down in September and merge into The CW. Granite recently found a new buyer for the stations, but at a reduced price of $150 million. In the lawsuit, Granite contends that the WB closure lessened the value of its stations and caused losses in revenue and other business opportunities. The company says it also made a $22.5 million payment to The WB to extend its KBWB's affiliation.
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