Paxson board now NBC-free - Broadcasting & Cable

Paxson board now NBC-free

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According to Paxson Communications Corp., the last two NBC-appointed
members of its board of directors have resigned.

Ed Wilson, president of NBC Enterprises, and Keith Turner, president, ad
sales and marketing of NBC, joined NBC-named board member Brandon Burgess, who
resigned Nov. 2.

The most recent resignations followed Paxson's attempt to block the
NBC/Telemundo Communications Group Inc. merger, arguing in part that the
NBC-appointed board members exerted undue control over their company.

NBC said its three members acted properly and, when they became an issue, NBC
offered to have them all resign.

But, an NBC attorney said, Paxson refused that offer.

Chairman Lowell 'Bud' Paxson said of the resignations: 'While we were given
no express reason for these resignations, it appears obvious that NBC's legal
review of this matter has concluded that they have some exposure under FCC
[Federal Communications Commission] rules and guidelines for wrongfully
influencing and controlling the NBC-named directors on Paxson's board.'

NBC responded in a statement:

'We offered in the past to have the NBC
employees resign from the board and Paxson had rejected that offer. Now, that
Paxson is leveling accusations against NBC, it's obviously inappropriate for
these employees to sit on the Paxson board. The fact that Paxson is making their
resignations into an issue is ironic.'

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