News Corp.'s New World

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In a deal that could have major implications for local spot TV advertisers, News Corp. agreed today to acquire the 80% of New World Communications Group that it did not own. The deal, valued at $2.5 billion, will give News Corp.'s Fox Broadcasting 22 TV stations covering about 40% of the U.S., though no two stations are in the same market. A number of the stations are UHF, which the Federal Communications Commission calculates at half the coverage of VHF stations; so, legally, Fox will reach almost 35% of the U.S. Advertisers and agencies have worried that such concentration, combined with local market agreements, will lead to higher ad rates.

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