July 30, 1943…RCA Announces Sale Of NBC Blue Network To Ed Noble

It would be October 12th before the FCC approved the deal, but July 30 was the day they agreed on the $8 million price, but would you believe that Noble actually only paid $7 million? It’s true, and here is the story.

RCA head David Sarnoff had been very firm on the asking price, even as bidders including such luminaries as Chicago’s Marshall Field, the Mellon family, McGraw Hill and Paramount PIctures balked at the price. Edward Noble owned the Lifesaver candy company, and was also interested, but was also balking.

Finally, a man that had started with NBC’s WEAF as an accountant in 1922, came up with a plan. His name was Mark Woods, and as VP of the Blue Net, he had overseen the fiscal separation of Red and Blue assets that became official on January 9, 1942, a year after the court ordered breakup.

Woods saw a chance to do something for the man who was apparently destined to be his boss, so he did it. Noble wanted to pay $7 million, instead of the $8 million RCA wanted. To make it happen, Woods went to Sarnoff and discussed an RCA sponsored series to run on the Blue net in the first year after the sale. Wood’s idea included $650,000 in air time, and $350,000 in talent costs. Sarnoff went along with the deal that allowed Noble to recoup $1 million on the sale. It was, at the time, the largest sale in broadcasting history. For those to young to know, this is the beginning of ABC. Enjoy and share! -Bobby Ellerbee

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