ION Media Networks (formerly known as Paxson Communications) is an American television broadcasting company that owns and operates over 60 television stations in most major American markets. It is now a privately owned company.
ION Media Networks Inc., formerly Paxson Communications Corporation, is a network television broadcasting company that owns and operates a broadcast television station group in the United States. As of December 31, 2006, the Company owned and operated 60 broadcast television stations (including three stations it operated under time brokerage agreements), all of which carry its network programming. It provides network programming around the clock and reach approximately 94 million homes through its broadcast television station group, and pursuant to distribution arrangements with cable and satellite distribution systems. The Company's schedule of entertainment programming principally consists of television series and feature films that have appeared previously on other broadcast networks, which the Company has purchased the right to air. The balance of the programming consists of long-form paid programming (principally infomercials), programming produced by third parties who have purchased from the Company the right to air their programming during specific time periods and local public interest programming. In May 2009, the Company filed for Chapter 11 protection in United States Bankruptcy Court in Manhattan.
The Company derives its revenues from the sale of network long-form paid programming, network spot advertising and station advertising. It sells airtime for long-form paid programming, consisting primarily of infomercials, during broadcasting hours when it is not airing entertainment programming or local public interest programming. Network long form paid programming represented approximately 48.6% of the Company's net revenue during the year ended December 31, 2006. It sells commercial airtime to advertisers who want to reach its entire nationwide viewing audience with a single advertisement. Network spot advertising revenue represented approximately 18.8% of the Company's 2006, net revenue. It sells commercial airtime to advertisers who want to reach the viewing audience in specific geographic markets, in which it owns and operates its television stations. These advertisers may be local businesses or regional or national advertisers who want to target their advertising in these markets. Station advertising sales represented approximately 32.6% of the Company's 2006, net revenue.
Company-Owned and Operated Television Stations
The Company owns and operates 60 broadcast television stations (including three stations the Company operates under time brokerage agreements (TBAs)), all of which carry its network programming. The Company's ownership of the stations providing most of its television distribution enables it to receive advertising revenue from each station's entire broadcast day. As nearly all of the Company's owned and operated stations operate in the ultra-high-frequency portion of the broadcast spectrum, only half of the number of television households they reach are counted against the national ownership cap under the Communications Act.
The Company operates three stations: WPXL, New Orleans; WPXX, Memphis, and WBNA, Louisville, pursuant to TBAs with the station owners. Under these agreements, it provides the station with network programming and retain the advertising revenues from the sale of advertising time during substantially all of its network programming hours, in the case of WPXL and WPXX, and during half of its network programming hours, in the case of WBNA. In January 2008, the Company completed the acquisition of the television stations, WPXX and WPXL, from Flinn Broadcasting Corporation.
Cable and Satellite Distribution
The Company has entered into carriage agreements with a number of cable multiple system operators, as well as with other cable system operators and satellite television providers. These cable and satellite system operators carry the Company's programming on a designated channel of their service. The carriage agreements enable it to reach television households in markets not served by its owned or affiliated stations. The carriage agreements with cable system operators generally require it to pay an amount based upon television households reached. Carriage agreements with satellite television providers allow the satellite provider to sell and retain the advertising revenue from a portion of the non-network advertising time during the Company's network programming hours. Some of the carriage agreements with cable operators also provide this form of compensation to the cable operator. It does not pay compensation for reaching households in designated market areas (DMAs) already served by its broadcast stations.
Network-Affiliated Stations
The Company entered into affiliation agreements with stations in markets where it does not otherwise own or operate a broadcast station. The Company had affiliation agreements with respect to 49 television stations. Effective June 30, 2005, 29 of these stations continue to be the Company's affiliates under a month-to-month arrangement.
The company was founded in 1984 by Lowell W. "Bud" Paxson in Florida. The company purchased radio stations and a couple television stations, eventually becoming Florida's largest radio group. The radio stations ranged from rock to contemporary hit radio to adult contemporary to news and talk. The television stations were network affiliates of ABC and NBC. In 1993 the company began to purchase stations on the outer fringes of large television markets. These stations would air ValueVision shopping, infomercials, and religious programs.
The company divested itself of both the radio group and major-network affiliated television stations in 1998, focusing on building its own independent TV network, "PAX TV". The company focused on acquiring UHF television stations. Some of these stations are out-of-market stations, such as WPXD in Ann Arbor, Michigan (45 miles from Detroit), KXLI in St. Cloud, Minnesota (60 miles from Minneapolis), WTLK in Rome, Georgia (45 miles from Atlanta), WPXJ in Pavilion New York (45 Miles From Both Buffalo, New York and Rochester, New York) and WAYK in Melbourne, Florida (60 miles from Orlando). Still in some markets the company bought low rated stations that had the same type of signals as established stations with medium to high ratings. These stations included WCFC in Chicago (religious), WTGI in Wilmington, Delaware (brokered), WAKC in Akron, Ohio (Cleveland's secondary ABC affiliate),and channel 35 in Miami (Shopping), among others. In the fall of 1997 a tentative lineup was announced and it included a family entertainment lineup of drama shows, movies, first run shows, wildlife shows, sitcoms, and talk shows. The most expensive station acquisition was WBIS in New York City. The city government had sold this station to Dow Jones and ITT in 1996 for nearly $200 million. In January 1997 Dow Jones launched a business format called S+ during the day and a sports channel after 7 pm and on weekends. Dow Jones/ITT lost money on the operation, sold the station for about $225 million in May 1997, and shut down S+ that June in favor of Bloomberg Business News, Fox Sports Net and a block previewing new networks, IntroTV. Channel 31 was renamed WPXN with plans to be the flagship station of PAX TV in the fall of 1998.
In Pittsburgh, Pennsylvania, the company wanted to buy WPCB, channel 40, from Cornerstone Television, and move the license to channel 16 (which was, and still is, occupied by WQEX), with channel 40 used for educational purposes. The two agreed on a purchase price, but the Federal Communications Commission had too many questions about the deal, most relating to the type of broadcast license to be operated on each channel, and it fell through.
The PAX network was launched in 1998 with family dramas like Life Goes On, Touched by an Angel, Dr. Quinn, Medicine Woman, Highway to Heaven, and Bonanza, a game show titled The Reel to Reel Picture Show, sitcoms Dave's World, Here's Lucy and The Hogan Family, and some movies. The network ran weekdays from noon until 1 am. Morning shows consisted of infomercials and other local shows. Overnights, PAX TV ran the Worship Network. Due to low ratings and mounting financial costs, PAX TV soon reduced its hours. In 1999, they were reduced to between 3 pm and midnight, and in 2002, they were reduced again to 6 pm to midnight.
In November 2005, to settle several lawsuits between the company and NBC Universal (NBCU), Lowell Paxson granted NBCU an 18-month transferrable option to purchase his shares of the company in an agreement which, if activated, would also trigger a sale of the rest of the company. If Mr. Paxson's shares of the company aren't sold in the option window, the company is obligated to buy them back from Mr. Paxson. Concurrent with this deal, Mr. Paxson left the company, and was succeeded by R. Brandon Burgess in the role of President and CEO.
OVERALL
Beta: 0.25
Market Cap (Mil.): €1,926.08
Shares Outstanding (Mil.): 60.22
Annual Dividend: --
Yield (%): --
FINANCIALS
PAX.BE Industry Sector
P/E (TTM): 350.63 544.83 12.60
EPS (TTM): 103.14 -- --
ROI: 4.91 3.74 1.12
ROE: -- 6.85 1.87
Name Age Since Current Position
Burgess, R. Brandon 39 2008 Chairman of the Board, President, Chief Executive Officer
Appel, Stephen 53 2004 President - Sales and Marketing
Ford, John 2010 President - Programming
Lawson, John 2008 Executive Vice President - Policy and Strategic Initiatives
Weinstein, Adam 43 2005 Senior Vice President, Secretary, Chief Legal Officer
Karas, Helen 2007 Senior Vice President - Network Sales
Brandon, Curtis 45 2006 Vice President, Controller
Cordoba, Emma 50 1999 Vice President, Director - Human Resources
Hensleigh, Eleo 2008 Chief Marketing Officer
Brandon, Henry 49 2001 Director
Rajewski, Raymond 63 2005 Director
Roskin, William 68 2006 Director
Davis, Eugene 56 2007 Director
Lodge, Ted 50 2007 Director
Wuensch, Ronald 2007 Director
Baker, Diane 43 2007 Director
Gjervold, Todd 2007 Director
Russell, Joseph 2008 Director
COMPANY ADDRESS
ION Media Networks Inc
601 Clearwater Park Road
West Palm Beach FL 33401
ION Media Networks Inc., formerly Paxson Communications Corporation, is a network television broadcasting company that owns and operates a broadcast television station group in the United States. As of December 31, 2006, the Company owned and operated 60 broadcast television stations (including three stations it operated under time brokerage agreements), all of which carry its network programming. It provides network programming around the clock and reach approximately 94 million homes through its broadcast television station group, and pursuant to distribution arrangements with cable and satellite distribution systems. The Company's schedule of entertainment programming principally consists of television series and feature films that have appeared previously on other broadcast networks, which the Company has purchased the right to air. The balance of the programming consists of long-form paid programming (principally infomercials), programming produced by third parties who have purchased from the Company the right to air their programming during specific time periods and local public interest programming. In May 2009, the Company filed for Chapter 11 protection in United States Bankruptcy Court in Manhattan.
The Company derives its revenues from the sale of network long-form paid programming, network spot advertising and station advertising. It sells airtime for long-form paid programming, consisting primarily of infomercials, during broadcasting hours when it is not airing entertainment programming or local public interest programming. Network long form paid programming represented approximately 48.6% of the Company's net revenue during the year ended December 31, 2006. It sells commercial airtime to advertisers who want to reach its entire nationwide viewing audience with a single advertisement. Network spot advertising revenue represented approximately 18.8% of the Company's 2006, net revenue. It sells commercial airtime to advertisers who want to reach the viewing audience in specific geographic markets, in which it owns and operates its television stations. These advertisers may be local businesses or regional or national advertisers who want to target their advertising in these markets. Station advertising sales represented approximately 32.6% of the Company's 2006, net revenue.
Company-Owned and Operated Television Stations
The Company owns and operates 60 broadcast television stations (including three stations the Company operates under time brokerage agreements (TBAs)), all of which carry its network programming. The Company's ownership of the stations providing most of its television distribution enables it to receive advertising revenue from each station's entire broadcast day. As nearly all of the Company's owned and operated stations operate in the ultra-high-frequency portion of the broadcast spectrum, only half of the number of television households they reach are counted against the national ownership cap under the Communications Act.
The Company operates three stations: WPXL, New Orleans; WPXX, Memphis, and WBNA, Louisville, pursuant to TBAs with the station owners. Under these agreements, it provides the station with network programming and retain the advertising revenues from the sale of advertising time during substantially all of its network programming hours, in the case of WPXL and WPXX, and during half of its network programming hours, in the case of WBNA. In January 2008, the Company completed the acquisition of the television stations, WPXX and WPXL, from Flinn Broadcasting Corporation.
Cable and Satellite Distribution
The Company has entered into carriage agreements with a number of cable multiple system operators, as well as with other cable system operators and satellite television providers. These cable and satellite system operators carry the Company's programming on a designated channel of their service. The carriage agreements enable it to reach television households in markets not served by its owned or affiliated stations. The carriage agreements with cable system operators generally require it to pay an amount based upon television households reached. Carriage agreements with satellite television providers allow the satellite provider to sell and retain the advertising revenue from a portion of the non-network advertising time during the Company's network programming hours. Some of the carriage agreements with cable operators also provide this form of compensation to the cable operator. It does not pay compensation for reaching households in designated market areas (DMAs) already served by its broadcast stations.
Network-Affiliated Stations
The Company entered into affiliation agreements with stations in markets where it does not otherwise own or operate a broadcast station. The Company had affiliation agreements with respect to 49 television stations. Effective June 30, 2005, 29 of these stations continue to be the Company's affiliates under a month-to-month arrangement.
The company was founded in 1984 by Lowell W. "Bud" Paxson in Florida. The company purchased radio stations and a couple television stations, eventually becoming Florida's largest radio group. The radio stations ranged from rock to contemporary hit radio to adult contemporary to news and talk. The television stations were network affiliates of ABC and NBC. In 1993 the company began to purchase stations on the outer fringes of large television markets. These stations would air ValueVision shopping, infomercials, and religious programs.
The company divested itself of both the radio group and major-network affiliated television stations in 1998, focusing on building its own independent TV network, "PAX TV". The company focused on acquiring UHF television stations. Some of these stations are out-of-market stations, such as WPXD in Ann Arbor, Michigan (45 miles from Detroit), KXLI in St. Cloud, Minnesota (60 miles from Minneapolis), WTLK in Rome, Georgia (45 miles from Atlanta), WPXJ in Pavilion New York (45 Miles From Both Buffalo, New York and Rochester, New York) and WAYK in Melbourne, Florida (60 miles from Orlando). Still in some markets the company bought low rated stations that had the same type of signals as established stations with medium to high ratings. These stations included WCFC in Chicago (religious), WTGI in Wilmington, Delaware (brokered), WAKC in Akron, Ohio (Cleveland's secondary ABC affiliate),and channel 35 in Miami (Shopping), among others. In the fall of 1997 a tentative lineup was announced and it included a family entertainment lineup of drama shows, movies, first run shows, wildlife shows, sitcoms, and talk shows. The most expensive station acquisition was WBIS in New York City. The city government had sold this station to Dow Jones and ITT in 1996 for nearly $200 million. In January 1997 Dow Jones launched a business format called S+ during the day and a sports channel after 7 pm and on weekends. Dow Jones/ITT lost money on the operation, sold the station for about $225 million in May 1997, and shut down S+ that June in favor of Bloomberg Business News, Fox Sports Net and a block previewing new networks, IntroTV. Channel 31 was renamed WPXN with plans to be the flagship station of PAX TV in the fall of 1998.
In Pittsburgh, Pennsylvania, the company wanted to buy WPCB, channel 40, from Cornerstone Television, and move the license to channel 16 (which was, and still is, occupied by WQEX), with channel 40 used for educational purposes. The two agreed on a purchase price, but the Federal Communications Commission had too many questions about the deal, most relating to the type of broadcast license to be operated on each channel, and it fell through.
The PAX network was launched in 1998 with family dramas like Life Goes On, Touched by an Angel, Dr. Quinn, Medicine Woman, Highway to Heaven, and Bonanza, a game show titled The Reel to Reel Picture Show, sitcoms Dave's World, Here's Lucy and The Hogan Family, and some movies. The network ran weekdays from noon until 1 am. Morning shows consisted of infomercials and other local shows. Overnights, PAX TV ran the Worship Network. Due to low ratings and mounting financial costs, PAX TV soon reduced its hours. In 1999, they were reduced to between 3 pm and midnight, and in 2002, they were reduced again to 6 pm to midnight.
In November 2005, to settle several lawsuits between the company and NBC Universal (NBCU), Lowell Paxson granted NBCU an 18-month transferrable option to purchase his shares of the company in an agreement which, if activated, would also trigger a sale of the rest of the company. If Mr. Paxson's shares of the company aren't sold in the option window, the company is obligated to buy them back from Mr. Paxson. Concurrent with this deal, Mr. Paxson left the company, and was succeeded by R. Brandon Burgess in the role of President and CEO.
OVERALL
Beta: 0.25
Market Cap (Mil.): €1,926.08
Shares Outstanding (Mil.): 60.22
Annual Dividend: --
Yield (%): --
FINANCIALS
PAX.BE Industry Sector
P/E (TTM): 350.63 544.83 12.60
EPS (TTM): 103.14 -- --
ROI: 4.91 3.74 1.12
ROE: -- 6.85 1.87
Name Age Since Current Position
Burgess, R. Brandon 39 2008 Chairman of the Board, President, Chief Executive Officer
Appel, Stephen 53 2004 President - Sales and Marketing
Ford, John 2010 President - Programming
Lawson, John 2008 Executive Vice President - Policy and Strategic Initiatives
Weinstein, Adam 43 2005 Senior Vice President, Secretary, Chief Legal Officer
Karas, Helen 2007 Senior Vice President - Network Sales
Brandon, Curtis 45 2006 Vice President, Controller
Cordoba, Emma 50 1999 Vice President, Director - Human Resources
Hensleigh, Eleo 2008 Chief Marketing Officer
Brandon, Henry 49 2001 Director
Rajewski, Raymond 63 2005 Director
Roskin, William 68 2006 Director
Davis, Eugene 56 2007 Director
Lodge, Ted 50 2007 Director
Wuensch, Ronald 2007 Director
Baker, Diane 43 2007 Director
Gjervold, Todd 2007 Director
Russell, Joseph 2008 Director
COMPANY ADDRESS
ION Media Networks Inc
601 Clearwater Park Road
West Palm Beach FL 33401