Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, September 2, 1994                   TAG: 9409020070
SECTION: BUSINESS                    PAGE: A7   EDITION: METRO 
SOURCE: ASSOCIATED PRESS
DATELINE: NEW YORK                                 LENGTH: Medium

BIG NETWORKS HAVEN'T LOST BUYER ALLURE

Time Warner Inc.'s apparent interest in General Electric Co.'s NBC division shows the enduring appeal of the major broadcast networks in an era of proliferating TV choices.

It also dramatizes the rapid media transformation as program suppliers seek ties with distributors who can assure that their shows reach desired audiences and help them defray rising production costs.

Media analysts say all three major networks - NBC, ABC and CBS - could undergo ownership changes in the next few years.

Time Warner, which became the world's biggest media and entertainment company in a merger less than five years ago, has been talking with General Electric about NBC, two sources said Thursday.

The sources speaking on condition of anonymity said GE has talked about the possibility of selling all or part of the NBC network and its cable services such as CNBC to Time Warner.

They said the talks are continuing and could result in some sort of strategic partnership. One source said: ``Nothing may even come of this.''

The New York Times and The Wall Street Journal both reported on the discussions in Thursday's editions.

The talks were said to exclude NBC's seven owned-and-operated stations because federal law restricts cable system operators like Time Warner from owning stations serving the same areas.

Time Warner, GE and NBC declined to comment on the reports.

The Times reported separately that the Walt Disney Co. has expressed interest in buying CBS Inc., which nearly merged with home shopping channel operator QVC Inc. That deal collapsed earlier this year.

``Program costs are so high, the studios need additional windows to show them,'' said Harold Vogel, entertainment analyst at Merrill Lynch & Co.

Not long ago some media watchers said the networks were dinosaurs facing extinction as viewers flocked to emerging new cable and pay-TV networks.

But the share of viewers watching the networks in prime time stabilized at about 61 percent. By placing strong orders for time in the fall TV season, advertisers showed they still appreciate the huge audiences that the networks can deliver.