THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, February 21, 1995 TAG: 9502210271
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: STAFF AND WIRE REPORT
DATELINE: VIRGINIA BEACH LENGTH: Medium: 52 lines
Christian Broadcasting Network intends to sell two news services that have been under its wing less than two years.
CBN's Broadcast Equities Inc. said Monday that it plans to sell StandardNews and ZapNews to Major Networks Inc. of Chicago. Terms of the deal were not disclosed.
StandardNews and ZapNews together employ about 60 people, primarily in Washington.
Broadcast Equities is a subsidiary of United States Media Corp., which is owned by broadcaster Pat Robertson's Christian Broadcasting Network in Virginia Beach.
Major Networks is a subsidiary of Major Broadcasting Cos. of Chicago.
``There were certainly financial challenges and challenges in a very competitive environment,'' CBN spokesman Gene Kapp said. ``I would say StandardNews was faced with these kinds of challenges and this sale was a situation that was going to benefit both CBN and the new owners, who can take it to a new level.''
Michael Carter, executive vice president of Broadcast Equities, said in a statement that the sale should be final by the end of February.
Broadcast Equities started StandardNews in January 1993 and bought ZapNews in September 1993.
StandardNews provides hourly newscasts to some 600 stations across the country.
It was the third attempt by Robertson to provide a mainstream, national news source. An early-morning TV news program, ``Usam,'' was launched in 1981, but died after failing to get enough sponsors. And, despite positive reviews, ``CBN News Tonight'' lasted only two months in 1986 because of a lack of ad revenue.
StandardNews' goal was to make money with separate news reports tailored for Christian and for secular radio stations.
In starting the news service, Robertson had a difficult mission: StandardNews had to carve away business and establish its reputation while competing with The Associated Press, ABC, CBS, NBC and CNN.
About 300 broadcast outlets subscribe to ZapNews, a wire news service which began by faxing news stories to its subscriber stations.
Major Networks provides programming to more than 1,300 U.S. radio stations. By adding StandardNews and ZapNews, Major Networks will add 900 stations. by CNB