American Broadcasting-Paramount Theatres, Inc. (originally United Paramount Theatres, later the American Broadcasting Companies and ABC Television) was the post-merger parent company of the
American Broadcasting Company
The American Broadcasting Company (ABC) is an American commercial broadcast television network. It is the flagship property of the ABC Entertainment Group division of The Walt Disney Company. The network is headquartered in Burbank, Cali ...
and United Paramount Theatres.
History
United Paramount Theatres
United Paramount Theatres, Inc. (UPT) was incorporated on ,
as a spin off of
Paramount Pictures' movie theater operations pursuant to the Supreme Court
anti-trust ruling in ''
United States v. Paramount Pictures, Inc.
''United States v. Paramount Pictures, Inc.'', 334 U.S. 131 (1948) (also known as the Hollywood Antitrust Case of 1948, the Paramount Case, or the Paramount Decision), was a landmark United States Supreme Court antitrust case that decided the f ...
''. UPT took over
Paramount's theater chains, which included
Balaban and Katz
Balaban and Katz Theater Corporation, or B&K, was a theatre corporation which owned a chain of motion picture theaters in Chicago and surrounding areas. It was founded by Barney Balaban (later long-time President of Paramount Pictures), his six ...
, a Chicago-based circuit that also included some broadcasting interests. 800 of the 1,450 Paramount theaters were to be divested. A court appointed trustee would control UPT stock for five years to ensure separate ownership of the two businesses. Paramount stockholders were to receive stock in both companies, with a conversion provision that would allow a shareholder to exchange its stock in one successor into the other company's stock.
Leonard Goldenson
Leonard H. Goldenson (December 7, 1905 – December 27, 1999) was the founder and president of the United States-based television network American Broadcasting Company (ABC), from 1953 to 1986. Goldenson, as CEO of United Paramount Theatres, ...
, who had headed the theater chain since 1938, remained as UPT's president. With the
American Broadcasting Company
The American Broadcasting Company (ABC) is an American commercial broadcast television network. It is the flagship property of the ABC Entertainment Group division of The Walt Disney Company. The network is headquartered in Burbank, Cali ...
(ABC) looking to enter television, UPT had the cash from the divested theaters and was looking to invest that money elsewhere, as it was barred from film making. ABC also considered
International Telephone & Telegraph and
General Tire, before accepting UPT's offer.
In 1950, UPT acquired a 1/3 share of Microwave Associates, Inc., a consulting and research company for millimeter-wave technology.
American Broadcasting-Paramount Theatres
American Broadcasting-Paramount Theatres, Inc. (AB-PT) became the name of United Paramount Theatres, Inc. on
[ to reflect its post merger status as the parent company of the merged companies, ]American Broadcasting Company
The American Broadcasting Company (ABC) is an American commercial broadcast television network. It is the flagship property of the ABC Entertainment Group division of The Walt Disney Company. The network is headquartered in Burbank, Cali ...
and United Paramount Theatres. The Federal Communication Commission approved the merger that same day. Leonard H. Goldenson continued as corporate president post merger with ABC president Robert E. Kintner
Robert E. Kintner (September 12, 1909 – December 20, 1980) was an American juggler and tennis champion who served as president of both the National Broadcasting Company (NBC) and the American Broadcasting Company (ABC).
Early life
A nati ...
continuing as ABC division president. No general theater division similar to the ABC division was set up as AB-PT corporate would handle overall theater planning and development. ABC division was slated to move out of the RCA Building to 7 W. 66th Street, New York City by April 1. The sale of WBKB (TV) in Chicago to CBS for $6 million was also approved by the FCC.
In 1954, AB-PT made a deal with Walt Disney
Walter Elias Disney (; December 5, 1901December 15, 1966) was an American animator, film producer and entrepreneur. A pioneer of the American animation industry, he introduced several developments in the production of cartoons. As a film p ...
to provide capital for his proposed Disneyland
Disneyland is a amusement park, theme park in Anaheim, California. Opened in 1955, it was the first theme park opened by The Walt Disney Company and the only one designed and constructed under the direct supervision of Walt Disney. Disney in ...
amusement park. For $500,000 in cash and a guarantee of $4.5 million in bank loans, AB-PT acquired a 34.48% interest in Disneyland, Inc.
Disneyland, Inc. (DLI) was a corporation formed to finance, build and run Disneyland park in Anaheim, California.
History
Start up
Disneyland, Inc. was incorporated in the State of California in 1951 by Walt Disney. A companion company owned on ...
and secured an agreement with Walt Disney Productions
The Walt Disney Company, commonly known as Disney (), is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California. Disney was originally founded on October 1 ...
to provide programs for the ABC-TV network. AB-PT's subsidiary, UPT Concessions, Inc. was enlisted to operate Tomorrowland's Space Bar (original name Stratosnak) and various other concession stands in Disneyland.
ABC-Paramount formed a records division in 1955, with Samuel H. Clark as its first president. The business was incorporated on June 14, 1955, as Am-Par Record Corporation.
In February 1956, along with Western Union
The Western Union Company is an American multinational financial services company, headquartered in Denver, Colorado.
Founded in 1851 as the New York and Mississippi Valley Printing Telegraph Company in Rochester, New York, the company chang ...
, AB-PT agreed to purchase a 22% share of Technical Operations, Inc. a nucleonics, operations research, chemistry and electronics company, with options to increase the share to 25%. In a related transaction, Western Union acquired a 1/3 share in Microwave Associates, allowing that AB-PT holding to purchase a site for a new plant.[ On December 30, 1956, a film production company, American Broadcasting-Paramount Theatres Pictures was formed, with Irving H. Levin as President.
By March 1957, AB-PT's theater circuits had divested more theaters than required by the court ruling. In June, AB-PT decided to sell 90 more theaters due to declining revenue.][
In 1957, Microwave Associates became a publicly traded corporation.][ On May 1, 1957, the American Broadcasting Company Radio Network was formed as an autonomous subsidiary, with Robert E. Eastman as President.
]
AB-PT purchased the Weeki Wachee Springs
Weeki Wachee Springs is a natural tourist attraction located in Weeki Wachee, Florida, where underwater performances by "mermaids," women wearing fish tails as well as other fanciful outfits, can be viewed in an aquarium-like setting in the spring ...
natural tourist attraction in Florida
Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and to ...
in 1959. Also in 1959, AB-PT acquired the Prairie Farmer
''Prairie Farmer'' is a weekly newspaper which covers agricultural and rural news in the state of Illinois. It was first published in 1841 in Chicago, Illinois by John Stephen Wright and was called ''The Union Agriculturist and Western Prairie F ...
agricultural publishing group, including Chicago radio station WLS (AM)
WLS (890 kHz) is a commercial AM radio station in Chicago, Illinois. Owned by Cumulus Media, through licensee Radio License Holdings LLC, the station airs a talk radio format. WLS has its radio studios in the NBC Tower on North Columbus Dri ...
, which shared a frequency with AB-PT's station WENR (defunct)
WLS (890 kHz) is a commercial AM radio station in Chicago, Illinois. Owned by Cumulus Media, through licensee Radio License Holdings LLC, the station airs a talk radio format. WLS has its radio studios in the NBC Tower on North Columbus Drive ...
.
In 1960, Walt Disney Productions
The Walt Disney Company, commonly known as Disney (), is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California. Disney was originally founded on October 1 ...
paid $7.5 million to buy back AB-PT's share in Disneyland and obtain a release from its ABC-TV contract. In 1962, AB-PT purchased another Florida nature attraction, Silver Springs, and placed it into the company's ABC Scenic & Wildlife Attractions subsidiary.
American Broadcasting Companies
American Broadcasting-Paramount Theatres, Inc. assumed the name, American Broadcasting Companies, Inc. on .[ ABC started ABC Pictures in 1965 to produce feature films. In 1965, Clark was appointed vice-president, non-broadcasting operation of American Broadcasting Companies overseeing ABC-Paramount Records, ABC music publishing, theater operations, ABC Pictures, ABC Amusements and other operations. In April 1966, Dunhill Records was purchased. American Broadcasting Companies move from the New York City Paramount Building to the ABC Building at 1330 Avenue of the Americas, in 1965. Its recording subsidiary was renamed ABC Records in 1966.
On December 7, 1965, Goldenson announced a merger proposal with ITT to ABCs board. The two companies agreed to the deal on . The FCC approved the merger on ; however the previous day (December 20), Donald F. Turner, head ]antitrust
Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
regulator for the United States Department of Justice
The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United State ...
, expressed doubts related to such issues as the emerging cable television
Cable television is a system of delivering television programming to consumers via radio frequency (RF) signals transmitted through coaxial cables, or in more recent systems, light pulses through fibre-optic cables. This contrasts with broa ...
market, and concerns over the journalistic integrity of ABC and how it could be influenced by the overseas ownership of ITT. ITT management promised that the company would allow ABC to retain autonomy in the publishing business. The merger was suspended, and a complaint was filed by the Department of Justice in , with ITT going to trial in ; the merger was officially canceled after the trial's conclusion on .
By , ABCs formed the ABC Leisure Group consisting of its theaters, farm publishing operations (ABC Farm Publications) and music ( ABC Records), Anchor Records
Anchor Records was a UK-based record label, co-founded by Ian Ralfini and the American Broadcasting Companies, which owned ABC Records in the United States, in 1974. ABC Records marketed (distributed) Anchor albums in the US, and Anchor Record ...
and ABC Records and Tape Sales plus a new retail record store division. In , ABC Leisure Group started ABC Retail Records Division was started head by president Al Franklin. Three Wide World of Music locations in Seattle and Providence were opened by , when they announced expansion to add 4 more locations. In 1974 by August, ABC Records had acquired two additional record companies. Leisure Group I added ABC Leisure Magazines and ABC Entertainment Center, Center City by October 1974.
Plitt Theatres
Plitt Theatres was a major movie theater chain in the United States and went under a number of names, Publix Theaters Corporation, Paramount Publix Corporation, United Paramount Theatres, American Broadcasting-Paramount Theatres and ABC Theatres a ...
purchased ABC Theatres northern group of movie theaters including the Balaban & Katz chain in 1974. A second Plitt corporation, Plitt Theatres Holding, purchased ABC's southern circuit in 1978 for $49 million.
ABC Scenic & Wildlife Attractions president John Campbell announced on April 27, 1973, its plans for developing its third wildlife preserve on 280 acres in Prince George's County, Maryland
)
, demonym = Prince Georgian
, ZIP codes = 20607–20774
, area codes = 240, 301
, founded date = April 23
, founded year = 1696
, named for = Prince George of Denmark
, leader_title = Executive
, leader_name = Angela D. Alsobroo ...
, 12 miles from Washington, DC. On July 15, 1974, The Wildlife Preserve opened in Prince George's County. In October 1974, ABC Leisure Group II was formed by ABC, composed of ABC Theatres (267 locations), ABC Scenic & Wildlife Attractions, Town of Smithville, NJ recreated historic settlement and the Silver Springs Bottled Water Co., under president Walter Schwartz.[
ABC Motion Pictures was a theatrical movie subsidiary of ABC, formed in May 1979.]
A cable division was started in July 1979 which was incorporated as ABC Video Enterprises, Inc. (AVE) by March 25, 1980. The company also doubled as a home video division of ABC. ABC announced ARTS
The arts are a very wide range of human practices of creative expression, storytelling and cultural participation. They encompass multiple diverse and plural modes of thinking, doing and being, in an extremely broad range of media. Both hi ...
in December 1980 to be launched on April 5, 1981, sharing Nickelodeon
Nickelodeon (often shortened to Nick) is an American pay television television channel, channel which launched on April 1, 1979, as the first cable channel for children. It is run by Paramount Global through its List of assets owned by Param ...
's channel at night. ABC and the Hearst Corporation
Hearst Communications, Inc., often referred to simply as Hearst, is an American multinational mass media and business information conglomerate based in Hearst Tower in Midtown Manhattan, New York City.
Hearst owns newspapers, magazines, televis ...
in January 1981 formed a joint venture, Hearst/ABC Video Services, to provide programming to ARTS and launch BETA, a women's network, later that year.[ With Group W Satellite Communications, ABC Video Enterprises formed the ]Satellite News Channel
Satellite News Channel (SNC) was an American short-lived news-based cable television channel that was operated as a joint venture between the ABC Video Enterprises division of American Broadcasting Companies, Inc. (a.k.a. ABC) and the Group W S ...
in 1981 only to sell it a year later to Turner Broadcasting, owner of CNN
CNN (Cable News Network) is a multinational cable news channel headquartered in Atlanta, Georgia, U.S. Founded in 1980 by American media proprietor Ted Turner and Reese Schonfeld as a 24-hour cable news channel, and presently owned by ...
. Cox Cable
Cox Communications, Inc. (also known as Cox Cable and formerly Cox Broadcasting Corporation, Dimension Cable Services and Times-Mirror Cable) is an American digital cable television provider, telecommunications and home automation services. It i ...
and AVE formed FirstTicket in 1983, to try the market for pay-per-view sporting events. AVE and ESPN launched Reserve Seat Video Productions, a pay-per-view sports producer, in 1983.
In 1984, ABC Scenic & Wildlife Attractions sold both Florida locations to Florida Leisure Attractions. In 1984, Hearst/ABC-Viacom Entertainment Services (HAVES) was formed from the merger of Daytime (BETA) and Lifetime Medical Television to start and operate a new cable channel, Lifetime Television
Lifetime is an American basic cable channel that is part of Lifetime Entertainment Services, a subsidiary of A&E Networks, which is jointly owned by Hearst Communications and The Walt Disney Company. It features programming that is geared toward ...
.
Capital Cities' announced $3.5 billion purchase of ABC on March 18, 1985, stunned the media industry, as ABC was some four times bigger than Capital Cities was at the time. Berkshire Hathaway
Berkshire Hathaway Inc. () is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. Its main business and source of capital is insurance, from which it invests the float (the retained premiu ...
chairman Warren Buffett
Warren Edward Buffett ( ; born August 30, 1930) is an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway. He is one of the most successful investors in the world and has a net ...
helped to finance the deal in exchange for a 25 percent share in the combined company.
In October 1985, ABC Motion Pictures was shut down.
ABC Television
American Broadcasting Companies assumed the name ABC Television, Inc. on [ on the same date a second corporation with the name American Broadcasting Companies, Inc. was formed.]
ABC Television, Inc. was dissolved on .[
]
References
Bibliography
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*
*Polsson, Ken
Chronology of Disneyland Theme Park
{{ViacomCBS
Movie theatre chains in the United States
Former cinemas in the United States
American Broadcasting Company
Paramount Pictures
Conglomerate companies of the United States
Entertainment companies based in New York City
Entertainment companies established in 1949
Companies disestablished in 1989
Defunct companies based in New York (state)
1949 establishments in New York City
1989 disestablishments in New York (state)