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GRAHAM HOLDINGS CO filed this Form 10-Q on 11/15/1994
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         In December 1993 the Federal Communications Commission (FCC) finalized
its award of a pioneer's preference for personal communications services (PCS)
to American PCS, L.P. (known as American Personal Communications or APC), a
limited partnership in which the company has a 70 percent limited partnership
interest.  Under the terms of that preference, the initial award, the license
was to be awarded at no cost to the pioneer.  Pursuant to the award, in January
1994, APC filed an application for a PCS license with the FCC.  APC has begun
some preparatory activity, and immediately following receipt of license from
the FCC, the company expects to substantially increase the level of capital
investment in the business.

         On August 9, 1994, the FCC reversed its position with respect to
awarding licenses to pioneers at no cost.  Under the terms of that decision
pioneers would have to pay the lesser of either 90 percent of the winning bid
for a similar license in the same market or 90 percent of the weighted average
price of the winning bids in the 10 top markets.

         APC has filed suit in the U.S. Court of Appeals for the District of
Columbia Circuit challenging the authority of the FCC to require pioneers to
pay auction based fees.  The U.S Court of Appeals has stayed the proceeding
pending the outcome of a proposed replacement formula contained in the General
Agreement on Trade and Tariffs ("GATT") implementing legislation currently
under consideration by the U.S. Congress.  Under the GATT formula, pioneers
would have to pay 85 percent of the average price contained in winning bids for
licenses in the top 20 markets, excluding licenses for the three markets
awarded to pioneers.

         The cost for the licenses and the impact on APC will not be
determinable until the completion of the judicial and legislative processes as
well as the conclusion of the FCC auction process itself. The cost for the
licenses, if any, will be in addition to the company's initial estimate of
construction costs, which could approximate $200 million.

         In February 1994, the FCC issued additional new rules related to
pricing and the reregulation of the cable industry.  These rules took effect on
July 14, 1994, and had the effect of reducing cable revenues.  The company has
evaluated the rules and expects them to continue to impact cable revenues for
the next nine months although it does not believe their impact will have a
material effect on consolidated financial results.

         Post-Newsweek Stations now has six television stations, two each
affiliated with ABC, CBS and NBC.  Several of these stations have negotiated
long-term affiliation agreements during the past 15 months.  As a result of
these agreements, Post-Newsweek Stations will receive significantly improved
network compensation over the life of the