Capital Cities/ABC
An American media conglomerate created when Capital Cities Communications acquired American Broadcasting Companies and later sold the combined business to Disney.
Last updated October 14, 2026
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Overview
Capital Cities/ABC was an American media conglomerate that combined the broadcasting, publishing, cable, and entertainment assets of Capital Cities Communications with those of American Broadcasting Companies, Inc., the parent company of ABC. Although the resulting company took the Capital Cities/ABC name in 1985, its history extended back to a small Albany, New York, radio operation established in 1946 and to ABC's earlier broadcasting and entertainment businesses. Capital Cities developed from Hudson Valley Broadcasting Company, which obtained a license for Albany radio station WROW in 1946. It expanded into television during the 1950s, changed its name to Capital Cities Television Corporation in 1957 and later to Capital Cities Broadcasting, and built a reputation for acquiring strong local television and radio stations in major and regional markets. During the 1960s and 1970s it broadened into newspapers, trade publications, magazines, and syndicated television production. Its holdings eventually included stations such as WPVI-TV in Philadelphia, KTRK-TV in Houston, WTVD in Durham, KFSN-TV in Fresno, and radio and television properties in several large U.S. markets. The defining transaction occurred in March 1985, when Capital Cities announced an agreement to acquire the much larger ABC for approximately $3.5 billion. The deal was unusually bold because ABC was several times larger than Capital Cities. Berkshire Hathaway chairman Warren Buffett helped finance the transaction and received a substantial stake in the combined company. The merger was completed on January 3, 1986, creating one of the largest American media groups of its era. Regulatory ownership limits required the divestiture of overlapping television and radio stations, although the Federal Communications Commission granted a permanent waiver that allowed the company to retain WPVI-TV in Philadelphia alongside ABC's WABC-TV in New York. After the merger, Capital Cities/ABC operated the ABC television and radio networks, ABC News, ABC Sports, ABC Entertainment, numerous owned television and radio stations, cable and international investments, newspapers, magazines, and trade publishing assets. Its interests included stakes in ESPN, A&E Television Networks, Lifetime Television, Eurosport, and other international or specialty-media ventures. The company also pursued video, animation, television production, and multimedia initiatives, including investments involving DIC Entertainment, Brillstein-Grey Entertainment, DreamWorks, and Electronic Arts. The company remained active in acquisitions and restructuring during the early 1990s. It expanded agricultural publishing through Farm Progress, launched ABC Video and later Summa Video, reorganized its businesses into network, publishing, broadcasting, and multimedia groups, and increased its involvement in television production and animation. Bob Iger, then president of the ABC TV Network Group, became an important senior executive during this period. The Walt Disney Company announced its agreement to acquire Capital Cities/ABC in 1995. The transaction closed in 1996, and the business was reorganized under Disney as ABC, Inc. and related Disney-ABC operations. Capital Cities/ABC therefore ceased to exist as an independent corporate group, while many of its broadcasting, cable, news, sports, and entertainment assets became part of Disney's media businesses.
History
The corporate lineage of Capital Cities/ABC began in Albany, New York, in 1946. Hyman Rosenblum and other local investors formed Hudson Valley Broadcasting Company after obtaining a license for WROW radio. The business entered television in 1953 with WROW-TV. In the mid-1950s, New York investors led by broadcaster Lowell Thomas acquired majority control, with Frank Smith becoming president. The company expanded through a series of station acquisitions. In 1957 it combined with Durham Broadcasting Enterprises, owner of WTVD in North Carolina, and adopted the Capital Cities Television Corporation name. The name was later changed to Capital Cities Broadcasting. During the 1960s it acquired radio and television properties in Providence, Buffalo, Detroit, Flint, Huntington, Los Angeles, and other markets. Federal Communications Commission ownership limits forced some divestitures, but the company continued to assemble a geographically diverse station portfolio. Capital Cities moved into publishing in 1968 through the acquisition of Fairchild Publications, whose properties included Women's Wear Daily. It bought The Oakland Press in 1969 and expanded further through the acquisition of Triangle Publications' stations, newspapers, and syndicated television operations in 1970. The company changed its name to Capital Cities Communications in 1973 to reflect its broader media interests. During the 1970s it acquired the Fort Worth Star-Telegram, the Kansas City Star, Times Leader, the Jackson Newspapers chain, and other newspapers and trade publications. It also produced syndicated family specials and continued to invest in radio and television stations. In 1985 Capital Cities made the transaction that defined its corporate history. It agreed to buy ABC, a national broadcaster substantially larger than itself, for about $3.5 billion. Warren Buffett's Berkshire Hathaway helped finance the purchase. The merger closed in January 1986, creating Capital Cities/ABC. Because the combined company exceeded broadcasting ownership limits and held overlapping radio and television properties, it sold a number of stations. It retained important ABC combinations in New York, Los Angeles, Chicago, San Francisco, and Washington, D.C., as well as several strong former Capital Cities stations. The FCC granted a permanent waiver allowing the company to keep WPVI-TV in Philadelphia despite its signal relationship with WABC-TV. Capital Cities/ABC operated as a multi-division media group. Its network operations included ABC Television Network, ABC News, ABC Sports, ABC Entertainment, daytime programming, and children's programming. Its broadcasting group managed ABC radio and television stations. The company also held major interests in ESPN, A&E Television Networks, Lifetime, Eurosport, and other cable or international ventures. Publishing assets included Fairchild Publications, Farm Progress, newspapers, business journals, magazines, and regional newspaper groups. During the early 1990s the group pursued new forms of distribution and production. It acquired agricultural magazines, sold Word's music and book publishing operations, launched ABC Video and later Summa Video, created a television production venture with Brillstein-Grey, acquired a majority interest in DIC Animation City, and entered a television production arrangement with DreamWorks. A 1993 reorganization placed the business into network, publishing, broadcasting, and multimedia groups, with Bob Iger receiving increased responsibility. Disney announced its acquisition of Capital Cities/ABC in 1995. The transaction closed in 1996, when the combined operation was reorganized under ABC, Inc. and Disney-ABC structures. Some publishing assets, including Farm Progress, were subsequently separated or divested. Capital Cities/ABC consequently ended as an independent company, while ABC, ESPN, stations, cable interests, and other assets continued within Disney's media organization.
- 1996
Integration into Disney
[1]The Disney merger closed and Capital Cities/ABC ceased to operate as an independent corporate group, becoming part of Disney through the creation of ABC, Inc.
- 1996
Disney acquisition completed
[1]Capital Cities/ABC became part of Disney through the creation of ABC, Inc.
- 1995
Disney announces acquisition
[1]The Walt Disney Company announced a transaction to acquire Capital Cities/ABC.
- 1993
Four-group corporate reorganization
[1]The company reorganized its operations into television network, publishing, broadcasting, and multimedia groups.
- 1986
Capital Cities/ABC begins operations
[1]The merger closed on January 3, creating the Capital Cities/ABC media group after required station divestitures and affiliate changes.
- 1985
ABC acquisition is announced
[1]Capital Cities announced its approximately $3.5 billion purchase of ABC.
- 1973
Name changes to Capital Cities Communications
[1]The company adopted a name reflecting its broadcasting, newspaper, magazine, and other communications holdings.
- 1968
Entry into publishing
[1]Capital Cities acquired Fairchild Publications, expanding beyond broadcasting into magazines and trade publishing, including Women's Wear Daily.
- 1957
Capital Cities Television Corporation is created
[1]Hudson Valley Broadcasting merged with Durham Broadcasting Enterprises and adopted the Capital Cities Television Corporation name.
- 1953
Entry into television
[1]Hudson Valley Broadcasting opened WROW-TV, serving the Albany-Schenectady-Troy area as its second television station.
Products and positioning
A diversified American media conglomerate combining national television and radio networks with local stations, cable interests, news and sports operations, newspapers, magazines, and entertainment production. A diversified American media company built around broadcasting, then expanded into newspapers, magazines, trade publishing, production, cable interests, and international media. Its strategic reputation centered on disciplined station acquisitions, operational efficiency, and the ability to manage a broad portfolio of local and national media assets.
Broadcast television network
ABC Television Network
The national television network was the central consumer-facing asset of Capital Cities/ABC. Its programming operations included entertainment, news, sports, daytime, and children's programming, supported by owned stations and affiliated broadcasters across the United States. The merger strengthened ABC's station base in several important American markets and brought former CBS affiliates into the ABC network in North Carolina and California. The national ABC network was the central entertainment and news platform within Capital Cities/ABC. The company controlled network programming, news, sports, daytime, and children's programming groups, while also operating or retaining major affiliated and owned television stations. The merger strengthened ABC's station base in several important American markets and brought former CBS affiliates into the ABC network in North Carolina and California.
Television news
ABC News
ABC News supplied national television news programming within the ABC network group. It formed part of the company's principal broadcast operations and later continued under Disney ownership.
Sports broadcasting
ABC Sports
ABC Sports was the network's sports programming division and operated alongside ABC Entertainment, ABC News, daytime programming, and children's programming within the network group.
Radio network
ABC Radio Network
The ABC Radio Network was part of the company's broadcast portfolio, complemented by owned AM and FM stations in major American markets and by local radio combinations inherited from both ABC and Capital Cities. Capital Cities/ABC retained important radio and television combinations in New York, Los Angeles, Chicago, and San Francisco, as well as additional stations in Washington, D.C., Detroit, and other markets, while divesting overlapping or excess properties after the merger. ABC's radio operations formed part of the combined company's broadcast group. Capital Cities/ABC retained important radio and television combinations in New York, Los Angeles, Chicago, and San Francisco, as well as additional stations in Washington, D.C., Detroit, and other markets, while divesting overlapping or excess properties after the merger.
Cable sports media
ESPN
Capital Cities/ABC held an 80 percent interest in ESPN during the period immediately before the Disney acquisition. ESPN broadened the company's reach from broadcast television into subscription cable sports media.
Trade publishing · 1968
Fairchild Publications
Acquired by Capital Cities in 1968, Fairchild Publications was a prominent trade-publishing business associated with titles including Women's Wear Daily and other specialized industry publications.
Agricultural publishing
Farm Progress
Farm Progress Companies operated agricultural magazines and related publishing properties. Capital Cities/ABC expanded the unit through its 1991 acquisition of a twelve-magazine farming group.
Television production and syndication · 1970
Capital Cities syndicated television production
The former Triangle Publications syndicated television operation became Capital Cities Television Productions and distributed programming, including family specials. Its production library and syndication rights were handled through later arrangements.
Home video · 1992
ABC Video, Signet Video, and Summa Video
Capital Cities/ABC established ABC Video in 1992 and later renamed the operation Summa Video. The unit was intended to release feature films and television movies, with distribution support from Paramount Home Video. ABC Video was followed by the Signet Video label, later renamed Summa Video. The company created home-video operations in the 1990s to distribute feature films and television movies. ABC Video was followed by the Signet Video label, later renamed Summa Video, which entered a distribution arrangement with Paramount Home Video.
Animation production · 1993
DIC Entertainment
In 1993 Capital Cities/ABC acquired majority ownership in DIC Animation City and created a joint venture structure known as DIC Entertainment L.P., extending the group into animated programming and production.
Publishing · 1968
Newspapers and magazines
The publishing portfolio included Fairchild Publications, newspapers such as the Fort Worth Star-Telegram, The Kansas City Star, Times Leader, The Oakland Press, and the Oregon-based Jackson Newspapers group, along with agricultural, business, legal, and consumer publications. These assets gave the company a substantial presence outside electronic broadcasting.
Marketing campaigns
- 1978Syndicated family-specials program
United States
Capital Cities Communications produced and distributed a series of family-oriented television specials through its syndicated production operation during the years before the ABC acquisition. The programs became part of the company's syndicated production library.
Outcome. The programs became part of the company's syndicated production library.
Brand decisions
1995
Sell the company to DisneyM&ABackground
Capital Cities/ABC controlled valuable broadcast, cable, news, sports, publishing, and entertainment assets that complemented Disney's existing media and entertainment operations.
Action taken
The Walt Disney Company announced an agreement to acquire Capital Cities/ABC.
Aftermath
The transaction closed in 1996, ending Capital Cities/ABC's independent corporate existence and placing its principal media assets within Disney. The transaction closed in 1996 and created ABC, Inc. as a Disney subsidiary. Some publishing assets were excluded or later separated.
1993
Create four operating groupsStrategyBackground
The company had expanded across broadcasting, publishing, cable, production, and emerging multimedia activities.
Action taken
Capital Cities/ABC reorganized into ABC TV Network, publishing, broadcasting, and multimedia groups.
Aftermath
The structure clarified management responsibility for the conglomerate's increasingly diverse businesses and elevated Bob Iger's role.
1993
Reorganize the company into four operating groupsStrategyBackground
The company had developed a wide portfolio spanning broadcast networks, local stations, newspapers, magazines, production, cable investments, and emerging media activities.
Action taken
Capital Cities/ABC established television network, publishing, broadcasting, and multimedia groups.
Aftermath
The structure gave separate organizational homes to the company's principal businesses before the Disney transaction.
1986
Restructure broadcast holdings after the mergerOtherBackground
The combined company exceeded FCC limits on television ownership and held overlapping radio and television stations in several markets.
Action taken
Capital Cities/ABC sold or spun off selected television and radio stations while seeking regulatory relief for certain retained properties.
Aftermath
The company retained key ABC and former Capital Cities stations, including WPVI-TV after receiving a permanent FCC waiver.
1985
Acquire American Broadcasting CompaniesM&ABackground
Capital Cities was substantially smaller than ABC, but sought to combine its efficient regional broadcasting and publishing operations with ABC's national television, radio, and entertainment assets.
Action taken
The company announced an approximately $3.5 billion acquisition of ABC, supported in part by financing from Berkshire Hathaway.
Aftermath
The merger closed in 1986 and created Capital Cities/ABC. FCC ownership limits required the combined company to sell or spin off several stations.
Transaction value. Approximately $3.5 billion (Announced March 18, 1985)
Recent events
- 1996
Capital Cities/ABC becomes part of Disney[1]
Leadership change · M&A · Other
The Disney transaction was completed through the formation of ABC, Inc., ending Capital Cities/ABC's existence as an independent company.
- 1995
Disney announces acquisition of Capital Cities/ABC[1]
M&A
The Walt Disney Company announced an agreement to acquire Capital Cities/ABC in a transaction that would combine Disney's entertainment operations with ABC's networks and media assets.
- 1993
Capital Cities/ABC reorganizes into four operating groups[1]
Other
The company reorganized around television networks, publishing, broadcasting, and multimedia, reflecting its increasingly diversified portfolio.
- 1993
Capital Cities/ABC enters animation and production ventures[1]
M&A · Product launch
The company acquired a majority interest in DIC Animation City and established or expanded production relationships with Brillstein-Grey Entertainment.
- 1992
ABC launches a home-video business[1]
Product launch
ABC established ABC Video, later renamed Summa Video, to distribute feature films and television-related video products.
- 1991
Capital Cities/ABC expands farm publishing holdings[1]
M&A
The company's Farm Progress division acquired a twelve-magazine agricultural publishing group from Harcourt Brace Jovanovich.
- 1986
Capital Cities/ABC merger is completed[1]
Regulation · M&A
The merger between Capital Cities Communications and ABC was completed on January 3, forming Capital Cities/ABC and triggering station divestitures required by broadcasting ownership rules.
- 1985
Capital Cities announces acquisition of ABC[1]
M&A
Capital Cities announced a transaction to acquire the much larger American Broadcasting Companies for approximately $3.5 billion, creating a major new media conglomerate.
Sources1 sources
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