Friday, September 12, 1986/The Battalion/Page 9
President of CBS News resigns
softer ousting of CBS Inc. head
fl$ Discontent in news division forced change in leadership
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■NEW YORK (A.P) — Confronted
I/Arw^ a revo ^ front below and the
KUH ouster of his ally at the top, V an Gor-
don Sauter resigned Thursday after
■tumultuous 10 months as presi-
■nt of CBS News.
■The resignation came one day af
ter network founder William S.
Palev and Laurence A. Tisch, the
company’s major stockholder,
foi i ed the resignation of Thomas H.
ssible diplr- Wyman as chairman and chief exec-
^^■ve officer.
rbachev was lOpposition to Wyman crystallized
appeared to a ft er h e asked the CBS board to con-
Daniloff ot I9 er a f r f en< dly takeover by Coca-
fDanilofh®! 3 C° > according to Merrill
ie release ^ ri)Wn °f Channels, an industry
Wigazine. Paley and Tisch partic-
the Kremtr W r *y objected to any proposal
lerestimattc fhich would sacrifice the network’s
'can res[x-,W e P enc * ence ’ ^ rovvn sa id Thurs-
*n adminK'*y on t ^ ie “MacNeil-Lehrer News-
■In Atlanta, Coca-Cola spokesman
Carlton Curtis confirmed there had
Bn some discussions with the net-
v arres( work, but “there was no substance to
the can be 311 ' contact between the company
j b v f orf; . and CBS.” He said he did not know
■ s 1 at what level the contact was made or
when n occurred.
________,B>auter’s resignation was an-
Bunced minutes after CBS board
ijember Walter Cron kite had said
that a change in the news division’s
leadership appeared inevitable.
, ftpauter earlier this year laid off 70
em pl°y ees as P art a general
Ill v reduction in the CBS workforce and
Bp criticized openly by star employ-
jL*—, , ees such as Bill Moyers and Andy
Money for not insulating the news
Bision from the pressures of prof-
i i its and ratings.
|^l/in/®Mthough "60 Minutes” continued
* to lie very profitable, “CBS Evening
News” hacl fallen into a three-way
Bht with its competition and “CBS
, Pakistan p^rning News” fell to third place,
aestionedrJ|jrMy jg years at CBS were joyful
ssportThiaBd rewarding, and while the diffi-
seizureofi culut s 0 f the past 10 months consti-
I sought atBed an irreversible end-game, 1
into a Pate® i
ities
leave with pride in my work and re
spect and fondness for my former
colleagues,” Sauter said in a
statement.
He had also served as president of
CBS Sports, chief censor and news
bureau chief in Paris.
Gene Jankowski, president of
CBS Broadcast Group, said he ac
cepted Sauter’s resignation with re
gret, and that Howard Stringer, ex
ecutive vice president of CBS News,
would handle day-to-day operations
for the time being.
Stock analysts say
shake-up at CBS
won't be cure-all
NEW YORK (AP) — The dra
matic management shake-up at
CBS Inc. will help boost morale
and settle some of the turmoil
that has plagued the broadcasting
company, but the move is hardly
a cure-all, Wall Street analysts
said Thursday.
CBS still faces uncertainty over
who will run the company and
who will ultimately own it, the
analysts said.
And CBS must still address the
very problem that the departing
chairman tried to solve — how to
increase profits despite poorer
program ratings and the slow
down in the growth of advertising
revenue, they said.
The company’s employees
have not necessarily escaped
more of the cost-cutting measures
that had caused such public dis
sension, the analysts said.
On Wall Street, CBS stock fell
$6 a share to $134 in trading on
the New York Stock Exchange.
The stock had dropped $3.75 on
Wednesday.
The stock declined sharply be
cause the likelihood for a take
over battle for CBS had dimin
ished, analysts said.
The shake-up was “a positive
development for the company
and settles things a little bit,’’ said
Barry Kaplan, an analyst with the
investment firm Bear Stearns &
Co.
John Reidy, an analyst with
Drexel Burnham Lambert Inc.,
said, “With the return of William
Paley as an active chairman, I
think you have a major boost in
morale and everybody is going to
go back to doing their business.”
Edward Atorino, an analyst
with Smith Barney, Harris
Upham & Co., said, “I don’t think
it begins to solve their problems.
“CBS has to go through the
whole process of getting a new
president again. There’s going to
be more management upheaval.
There’s going to be more tur
moil.”
The network finished second
in the prime-time ratings race in
1985-86 after six straight winning
seasons.
CBS had an after-tax profit of
just $27.4 million on revenue of
$4.8 billion in 1985, compared
with a net profit of $212.4 million
on revenue of $4.6 billion.
There was no indication whether
a new chief for the news division
would be selected before a new CBS
chief executive is named. Former
Defense Secretary Harold Brown,
also a CBS board member, is head
ing a search committee for Wyman’s
replacement.
CBS fell into second place in the
prime-time ratings last season after
six years as No. 1.
Mike Dann, a former CBS pro
gramming vice president under
Paley, said the return of the 84-year-
old founding father would boost
CBS’ prime-time fortunes.
“He has a passion for shows,”
Dann said. “One of his favorites now
is ‘Cagney & Lacey.’ It’s important
and successful, a Paley trademark.”
Although prime time is a more se
rious problem for the bottom line,
the discontent in the news division
had been an open and embarrassing
sore.
Within the last two years, CBS also
had suffered from a multimillion-
dollar libel suit by Gen. William C.
Westmoreland, which it won, and
takeover attempts spearheaded by
Sen. Jesse Helms, R-N.C., and CNN
owner Ted Turner.
CBS, which said last year it would
pay $ 1 billion to buy back 20 percent
of its stock to thwart Turner, earned
$27.4 million in 1985 on revenues of
$4.8 billion.
At an 11-hour board meeting
Wednesday, Wyman yielded his ti
tles of chairman and chief executive
officer which he assumed in 1983
under pressure from Tisch, whose
Loews Corp. owns nearly 25 percent
of CBS stock, and Paley, who owns
8.1 percent.
As Loews’ stake in CBS had grown
and rumors of Wyman’s departure
became more frequent, Sauter had
allied himself publicly with Wyman,
as had Jankowski.
Jankowski, Walter R. Yetnikoff,
head of CBS Records, and Peter A.
Derow, president of CBS’ publishing
group, later won Tisch’s support.
Committee to study U.S. - Mexican relations
i man idem
aki was s
lamabad air$
th the seizin „
in KarachiMMEXiCO CI TY (AP) — An inde
pendent commission made up of 18
Libyan pa fop-ranking officials, intellectuals
forgery,kMd business leaders from both sides
“nceagaitedf'he border was formed Thursday
■ were killed to study U.S. - Mexican relations,
ijured wherfJSen. Hugo Marjapain, a former am-
the Pan AnMsador to Washington who is the
ened firedifflairman of the Mexican group, said
* passenger; the target is to have a report ready
H the time new presidents take of-
d Mina.wklffe * n Mexico in December 1988
cold The .11 in the United States in January
at police ■111 89 '
?stine UbeMThe U.S. group is chaired by Wil-
ssion in biM 111 ^°g ers > a Washington lawyer
for a mac' w ho was a former assistant secretary
ng with Ti'®
d authonsii
of state for inter-American affairs.
“This was not done by a govern
ment agreement,” Margain said at a
news conference. “There is absolute
independence.”
Here it is sponsored jointly by the
Ford Foundation and other private
organizations.
Margain said the study will be of
“all types of bilateral problems,” in
cluding economic, political, social
and cultural issues. He said the focus
will not be on “immediate problems”
but rather will be on the long term.
A statement describing the goals
said the research would identify
“those issues that will affect the
agenda of the relations between
Mexico and the United States from
now until the end of the century.”
It said the commission also would
seek “solutions and recommenda
tions of long range tending to
strengthen and make mutually more
advantageous these relations.”
Among the U.S. members are
Yvonne Brathwaite Burke, former
U.S. congresswoman from Los An
geles; San Antonio Mayor and Texas
A&M regent Henry Cisneros; U.S.
Sen. Nancy Kassebaum, R-Kan.;
Robert S. McNamara, former de
fense secretary and former presi
dent of the World Bank, and
Charles W. Parry, chairman of the
Aluminum Company of America.
Among the Mexican group are
Fernando Canales Clariond, a busi
nessman from the northern indus
trial city of Monterrey; Mario Ojeda,
president of the prestigious Colegio
de Mexico; novelist Carlos Fuentes,
and Ernesto Fernandez Hurtado, a
former director of the central Bank
of Mexico.
Franklin A. Thomas, president of
the Ford Foundation, said in a
statement released in New York that
the commission would discuss ways
to manage U.S.-Mexican relations
during the next 25 years.
^'gOfficial jailed for refusing to release records
ent, mear/t; DETROIT (AP) — The director of Detroit’s
t Air M Community & Economic Development Depart-
Syed.thedsfpent was jailed Wednesday for refusing to pro-
te air for«| Vide two newspapers with a list of city-owned
o invaif/'i property, a spokesman for the mayor said.
ie way ofiMEmmett Moten Jr. was ordered jailed by
Wayne County Circuit Judge Harry Dingeman
t official/fj Ju who on Monday found the city in contempt
5 may have j of court for refusing to provide the list to the De-
he bloodys®j tfo/f Free Press and Detroit News, said Robert
when thflBerg, a spokesman for Mayor Coleman Young,
power Dingeman on Monday also fined the city $250
gunmen W and ordered that Moten furnish the records to
proximattl'S
the newspapers by 3:30 p.m. Wednesday, Berg
said. Moten said before being jailed that he had
not had adequate time to compile the records,
the spokesman said.
Moten would be jailed up to 30 days or until
the city provided the material to the Free Press
and News, Berg said. But, he added, “There’s no
indication that it will.”
“We naturally regret anyone going to jail in
this case,” Free Press Executive Editor Kent
Bernhard said Wednesday night. “I think that’s a
shame. But I think the judge put it well when he
said Mr. Moten had the keys to his own jail cell, if
the city chose to turn over the records that the
court has ordered to be turned over.”
The Free Press in January filed a request for
the list of city-owned land under the Freedom of
Information Act. The newspaper sued to obtain
the list after the city refused to do so, and the
News later joined the suit, Berg said.
Berg said Young has resisted the newspapers’
efforts to obtain the list of city-owned property,
saying its release could prove costly to taxpayers.
Dingeman had ordered Aug. 26 that the city
immediately furnish the records to the newspa
pers.
.man, diif
■deral Inve
The
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:hi.
SOCCER TRYOUTS
Soccer players born in 1968, 1969, or 1970 who are interested in
Classic League and McGuire Cup play are invited to tryouts for
the Brazos United Sting under-19 team. Tryouts will be held on
the field east of Zachry Engineering Center on Tuesdays and
Thursdays at 5:30 p.m. beginning September 9. Players should
attend all tryouts. The Sting will represent the Brazos Valley
Youth Soccer Association in South Texas Youth Soccer Asso
ciation competitions. For more information call Make McDer
mott 693-3766(H) 845-4337(W)
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