or


[11/07/05 - 12:00 AM]
NBC Universal and Paxson Communications Reach Strategic Agreement

[via press release from NBC Universal Television Studio]

NBC UNIVERSAL AND PAXSON COMMUNICATIONS REACH STRATEGIC AGREEMENT

Agreement Bolsters Strategic and Financial Flexibility of Both Companies

Brandon Burgess to Join Paxson Communications as Chief Executive Officer

NEW YORK / WEST PALM BEACH, Fla. -- November 7, 2005 -- NBC Universal and Paxson Communications Corp. ("Paxson Communications") (AMEX: PAX) today announced a definitive agreement that sets the stage for a strategic and financial restructuring of Paxson Communications, which owns and operates the nation's largest broadcast distribution system, consisting of 60 television stations and reaching 83% of domestic television households (approximately 91 million homes) via its station group and cable and satellite platforms.

Under the new agreement NBC Universal and Paxson Communications have modified the terms of NBC Universal's existing Series B preferred stock investment and related agreements. NBC Universal has acquired an 18-month call right from Paxson Communications' founder Lowell "Bud" Paxson to purchase all of Mr. Paxson's common shares, including his voting control shares. Although NBC Universal cannot currently exercise the call right under existing FCC rules, it may transfer the call right to a third party who may exercise it (subject to all necessary regulatory approvals). If the call right is exercised or transferred within 18 months, NBC Universal or its transferee will make a tender offer for all of Paxson Communications' outstanding Class A common stock, subject to all necessary regulatory approvals. If NBC Universal or its transferee fails to initiate a tender offer in the 18-month timeframe, NBC Universal will, as an alternative form of value, deliver $105 million of its Series B preferred stock back to Paxson Communications for distribution to Paxson Communications' Class A shareholders (excluding Mr. Paxson). The form of the consideration the public shareholders will receive depends on whether the call right is exercised. Also, NBC Universal and Paxson Communications have settled all pending legal disputes, including court proceedings and arbitration, which will be dismissed.

"NBC Universal has been the largest financial investor in Paxson Communications for some time, and we continue to believe that Paxson Communications has a compelling national platform," said Bob Wright, Chairman and CEO of NBC Universal. "This agreement gives Paxson Communications the flexibility to invite new partners and investors who do not face the same FCC limitations that we do and who are interested in investing in and programming a nationwide television distribution platform."

"We believe this agreement with NBC Universal will improve our Company's ability to realize the value of its assets and distribution platform, while providing our public stockholders an opportunity to receive enhanced value for their shares," said W. Lawrence Patrick, Chairman of the Special Committee of Paxson Communications' Board of Directors. "Furthermore, the agreement affords the company the flexibility necessary to attract strategic partners and investors, to improve prospects for refinancing, and to more cost effectively strengthen the company's balance sheet."

Terms of the Transaction

NBC Universal has acquired a transferable 18-month call right on all of Mr. Paxson's common shares, including his Class B voting control shares. NBC Universal paid Mr. Paxson $1.00 per Class A share and $1.15 per Class B share (a total of approximately $25 million) to acquire the call right. The exercise price of the call right is $0.25 per Class A share and $0.29 per Class B share. In order to exercise the call right, NBC Universal or a party to whom it transfers the call right must make a tender offer to purchase all Class A shares held by the public shareholders (other than those held by Mr. Paxson) at $1.25 per share. The $1.25 tender price will increase at a rate of 10% annually until the tender is commenced. In the tender offer, Paxson Communications' public stockholders will have the option to sell their shares at the tender price or retain their shares.

If the call right is not exercised or transferred within 18 months, then Paxson Communications public shareholders (excluding Mr. Paxson) will receive instead $105 million face value of Series B preferred stock (increasing at a rate of 10% until delivered) of a comparable rate type and equal rank to that owned by NBC Universal and will retain their common stock. In this circumstance, Paxson Communications would exercise the call right to purchase and retire Mr. Paxson's control shares, after which Mr. Paxson would no longer be a stockholder in the company.

As part of the agreement, NBC Universal agreed to reduce the accrued and unpaid dividends on its preferred stock (which were $288.6 million as of September 30, 2005 based on the disputed 28.3% dividend rate) by $100 million and to accept $188.6 million of additional Series B preferred stock issued by Paxson Communications to NBC Universal in full satisfaction of all accrued dividends through September 30, 2005. NBC Universal has also agreed to reduce the annual dividend rate on the resulting $604 million in preferred stock to 11% (reducing the annual dividend accrual on the Series B preferred stock by approximately $50 million) and to extend the redemption date of the Series B preferred stock from December 2009 to December 2013. The Series B preferred stock is convertible into common stock, subject to FCC and other limitations, at a price of $2.00 per share (reduced from $22.06 per share), which increases at the same rate as the dividend rate. The Series B preferred stock remains exchangeable at the option of the holder (subject to certain conditions) into subordinated debentures with a maturity date of December 31, 2009.

NBC Universal also purchased from Paxson Communications Series B preferred stock for $2.5 million and cancelled warrants it held to purchase approximately 32 million shares of Paxson Communications Class A common stock. NBC Universal remains a non-attributable investor in Paxson Communications under FCC rules.

Paxson Communications Management and Board of Directors

As concurrently announced today, Mr. Paxson has resigned as Chairman and Chief Executive Officer of Paxson Communications. R. Brandon Burgess, who resigned from NBC Universal where he was Executive Vice President of Business Development and International Channels, joins Paxson Communications as a member of the Board of Directors and will assume the responsibilities of Chief Executive Officer of the company on November 10, 2005. Mr. Paxson was named Chairman Emeritus, and he will continue to serve as single majority stockholder of entities holding Paxson Communications' FCC licenses until the purchase of his shares is complete and regulatory approval has been granted.

The transactions described in this release were unanimously approved by Paxson Communications' Board of Directors upon the recommendation of a special committee of independent directors comprised of W. Lawrence Patrick, Henry J. Brandon, and Raymond S. Rajewski. Lazard served as independent financial advisor to the Special Committee.

The Paxson Communications Board also includes Dean Goodman, the company's President and Chief Operating Officer, who will remain in that position. The Board will recruit up to four additional qualified independent director candidates to fill Board vacancies. The Board of Directors has also appointed Mr. Patrick, who served as Chairman of the Special Committee, as Chairman of the Board.

About NBC Universal

NBC Universal is one of the world's leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information to a global audience. Formed in May 2004 through the combining of NBC and Vivendi Universal Entertainment, NBC Universal owns and operates a valuable portfolio of news and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group, and world-renowned theme parks. NBC Universal is 80% owned by General Electric, with 20% controlled by Vivendi Universal.

About Paxson Communications Corporation

Paxson Communications Corporation owns and operates the nation's largest broadcast television station group. Paxson reaches 83% of U.S. television households via nationwide broadcast television, cable and satellite distribution systems. For more information, visit Paxson's website at www.paxson.com

Note: Paxson distribution data provided by Nielsen Media Research.

Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. All statements herein that address activities, events or developments that Paxson Communications Corporation expects or anticipates will or may occur in the future, including its estimates of financial performance, are forward looking statements.





  [november 2005]  
S
M
T
W
T
F
S
  


· SHOWATCH
(series past and present)
· DEVWATCH
(series in development)
· MOVIEWATCH
(tv movies and mini-series)





[12/09/25 - 12:00 PM]
FOX Kicks Off Its Winter Lineup with Special Advance Premiere Dates for New Series "Best Medicine" and Returning Comedy Series "Animal Control" Following FOX NFL Doubleheaders
Plus: look for a two-night premiere event for new drama series "Memory of a Killer," starring Patrick Dempsey and Michael Imperiloi, beginning immediately after the NFC Championship Game.

[12/09/25 - 10:31 AM]
John Stamos, Dale Dickey, and Cam Gigandet Join "The Hunting Wives" Season 2
The trio joins previously announced new cast members Kim Matula and Alex FitzAlan, alongside returning cast members Brittany Snow, Malin Akerman, Jaime Ray Newman, Dermot Mulroney, Evan Jonigkeit, George Ferrier, Karen Rodriguez, Hunter Emery, and Branton Box.

[12/09/25 - 10:01 AM]
BET+ Original Film, "A Soulful Christmas," Premieres Thursday, December 25
The film stars Kaci Walfall, Myles Truitt, Shanice, Kenny Lattimore, Taylor Symone, E. Roger Mitchell, Towanda Braxton, KB Holland, Kyler Chavis, Gail Everett-Smith, Gerard Catus, Ryan James, and Elijah Resurreccion.

[12/09/25 - 09:31 AM]
"The Upshaws" Returns to Netflix on January 15 with Final Season
As Regina makes a run for office and Bennie's garage falls on hard times, the Upshaws will always find a way to keep it real, loud and full of love.

[12/09/25 - 09:22 AM]
Viaplay January 2026 Exclusive U.S. Premieres: "Sport vs. Money," "Stayer," "The Curse," "Scenes After a Marriage"
"Slayer" follows an aging rock musician forced to confront his greatest challenge when the mother of his child dies tragically - struggling to balance fatherhood, fame, and the haunting choices of his past.

[12/09/25 - 09:01 AM]
Video: Official Trailer - "The Wonderfully Weird World of Gumball" Season 2
The series, produced by Hanna-Barbera Studios Europe, returns on Monday, December 22 only on Hulu and Hulu on Disney+ for bundle subscribers.

[12/09/25 - 09:01 AM]
The History Channel's New Series "History's Deadliest with Ving Rhames" to Premiere on Monday, January 26
The 10-part series produced by Propagate Content will reveal the unbelievable details surrounding the world's most prolific and powerful killers.

[12/09/25 - 08:10 AM]
Roku Originals Hits the Road for Sophia Bush and Lauren Holly Comedy Feature "Broad Trip"
From Muse Entertainment and Motion Content, the film recently wrapped production and will debut on The Roku Channel in May 2026.

[12/09/25 - 08:09 AM]
FOX Nation Taps Zachary Levi for New Docudrama "David: King of Israel" Slated for Early 2026
Released weekly, the program brings to life the thrilling, turbulent and deeply human story of David, the shepherd boy who rose to become the greatest king in Israel's history, and whom Christians regard as the ancestor of Jesus Christ.

[12/09/25 - 08:08 AM]
OWN Announces "Maxxed Out": A Bold New Financial Intervention Series Premiering January 10, 2026
This unflinching eight-episode series reveals how money (and mismanaged money) can strain even the strongest relationships.

[12/09/25 - 08:01 AM]
Tyrese Haliburton Joins "NBA on Prime" as Player Contributor
Haliburton will make his debut tonight on "NBA on Prime's" postgame show, "NBA Nightcap," following the Emirates NBA Cup Quarterfinals doubleheader featuring the Miami Heat at Orlando Magic (6:00 p.m. ET) and New York Knicks at Toronto Raptors (8:30 p.m. ET).

[12/09/25 - 07:01 AM]
Apple TV Reveals First Look at "Margo's Got Money Troubles" from David E. Kelley
Based on Rufi Thorpe's bestselling novel of the same name, the eight-episode series will premiere globally on Wednesday April 15, 2026 with three episodes, followed by new episodes every Wednesday through May 20, 2026.

[12/09/25 - 07:01 AM]
Prime Video Reveals First-Look Images and Premiere Date for "56 Days," Starring Dove Cameron and Avan Jogia
All eight episodes will be released on Wednesday, February 18, 2026, exclusively on Prime Video in more than 240 countries and territories worldwide.

[12/09/25 - 06:01 AM]
Video: "Unlocked: A Jail Experiment" - Season 2 Official Trailer - Netflix
At an Arizona correctional facility, a sheriff implements a bold experiment to grant incarcerated men more agency in this eye-opening reality series.

[12/09/25 - 06:01 AM]
The Game is Afoot! Prime Video Releases First-Look Images for "Young Sherlock" Series
The thrilling series, brought to life by visionary director and executive producer Guy Ritchie, charts the origin story of Sherlock Holmes in an irreverent, action-laden mystery that follows the iconic detective's early adventures.