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NBC unit president resigns
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July 29, 1998: 4:25 p.m. ET
Television Network President Braun departs to bid on PolyGram film assets
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NEW YORK (CNNfn) - Neil Braun, the chief liaison between NBC and its affiliates, is stepping down as president of the NBC Television Network to pursue "entrepreneurial instincts," which include a bid for the PolyGram N.V. film business.
"It became evident that this would not work as a long-term fit," Braun said during a telephone interview on Wednesday.
The 45-year-old media executive told CNNfn he plans to make a bid on Thursday for the PolyGram assets, which include Gramercy Pictures.
But Braun's departure -- which many analysts and industry officials considered a surprise -- also helps underscore the Peacock network's inability thus far to reorganize its existing relationships with the affiliates.
"You never know why things like this happen. As far as I know, it's his decision as well as the network's," said Ken Elkins, former chairman of the NBC Affiliate Advisory Board.
Among the problems facing NBC is most station groups re-negotiated affiliation agreements back in 1995 for a 10-year term, locking in favorable terms for affiliated stations that extend out to 2005.
Braun, who joined the GE broadcasting subsidiary in 1994, was instrumental in proposing new alternatives for affiliate compensation. Last spring, Braun proposed an option of contributing NBC's estimated $200 million worth of compensation to a 50-50 joint venture owned with the affiliates rather than directly to the affiliated station groups.
"It was not an across-the-board response but I'd say the majority (of affiliates) would have been opposed it," said Elkins, who currently heads Pulitzer Publishing Co.'s station group that is being sold to Hearst-Argyle Television Inc.
To be sure, Braun considered the joint venture proposal as merely a "catalyst for conversation" to help affiliates recognize the importance of creating a more efficient business model.
Although Braun acknowledged the difficulties facing his replacement, the network executive expressed optimism that NBC can rearrange its affiliate relations.
"I believe it's too early to call that. ... I believe they will make progress," he said.
Braun will be replaced by Randy Falco, who previously served as president of the broadcasting and network operations, NBC announced on Wednesday. Falco's previous post will be filed by John Eck, who previously was chief quality officer at NBC.
Both appointments are effective Sept. 1.
Falco and Eck will report directly to NBC President Robert Wright.
In the meantime, Braun is meeting with BankAmerica Corp. officials to help arrange debt and equity financing for his bid of the PolyGram assets.
"At 45, I'm ready to be an entrepreneur. I want to go run something," Braun said.
Goldman Sachs is handling the auction on behalf of Seagram Co., which announced its plans to divest the operations with the acquisition of the PolyGram record label.
The deadline for bidders, which also include Microsoft Corp.'s co-founder Paul Allen, is Friday, July 31.
-- by staff writer Robert Liu
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