NEW YORK, Nov. 24 -- Westinghouse Electric Corp. said Friday it has completed its $5.5 billion acquisition of CBS Inc., creating the nation's largest broadcaster. The merger received final approved Wednesday from the Federal Communications Commission, which had delayed its action because of a dispute over children's programming and then because of the government shutdown. Owners of CBS stock will receive $82.065 per share. Westinghouse merged its Group W broadcasting operations with CBS under the CBS name. The network will continue to be based in New York. Westinghouse now owns 15 television stations and 39 radio stations as well as the CBS network. Some of the stations may have to be sold unless Congress passes legislation further deregulating the broadcasting industry. The FCC agreed to waive temporarily the rules that limit national ownership of TV stations to 12 stations or 25 percent of the national audience. Combined, the new company will own stations that reach 33 percent of the U.S. market and will not have to sell them if a pending telecommunications deregulation bill clears Congress and is signed into law. Westinghouse had agreed to pay $1 million a day in interest to CBS shareholders for each day since Aug. 31 until the deal closes. As a result, Westinghouse's payout to CBS shareholders will be $82.065 per share rather than the original $81. CBS shareholders approved the deal last week with 98 percent voting in favor. Westinghouse managed to dispel some resistance to the CBS buyout several weeks ago by agreeing to boost the amount of educational children's programming to three hours per week.
That prompted three groups -- the United Church of Christ, Black Citizens for Fair Media and the Center for Media Education -- to withdraw a petition to the FCC to block the deal. CBS also has been hit with eight shareholder lawsuits in New York alleging the price being paid by Westinghouse is too low. But most analysts believe Westinghouse is paying top dollar for CBS. CBS stock was up to $82 a share in mid-session trading on the New York Stock Exchange on Wednesday. Westinghouse was up to $16.125. The market was closed Thursday and Friday for the Thanksgiving holiday. Pittsburgh-based Westinghouse has been selling off assets to cut debt and finance the buyout of CBS. The TV network has been in a ratings slump since 1992. CBS also took a beating last year with the loss of eight affiliate stations and its NFL games to News Corp.'s Fox Broadcasting.
