The networks and Hilton family appeared anxious to avoid a public backlash over the idea that the wealthy hotel heiress, slated to be released Tuesday, would profit from her time in jail.
ABC backed off "because the process left us pretty cold," the executive said.
Earlier in the week, ABC News said it believed it had secured the Hilton interview with Walters. The network had agreed to pay the Hilton family as much as $100,000 for the use of exclusive video and other material to go with the story. But ABC learned from the Hiltons that it had lost out to an "astronomical" offer from NBC, the executive said.
NBC News denied having an interview lined up with Hilton. "We don't pay for interviews, and we'll never pay for interviews," said spokeswoman Allison Gollust.
Although it's considered a journalistic sin to pay for interviews, the ban can be sidestepped in many ways for hotly contested ones. One method is agreeing to pay for videos and other materials, and another is shifting negotiations to a network's entertainment division, which observes no such prohibitions.
A spokesman for the Hilton family issued a statement Thursday saying they had not requested any payment for an interview or related material. He did not immediately return a call for comment yesterday.
The New York Post, which had first reported ongoing talks over a post-jail interview, headlined a story yesterday: "So Crime DOES pay, Paris."
A spokesman for OK! magazine said Hilton's representatives had approached them a few weeks ago to see if they were interested in pictures and an interview when she got out of jail. "We didn't reciprocate with a bid," spokesman Brian Strong said.
NBC recently landed an exclusive interview with Britain's Prince William and Prince Harry, which, conducted by Matt Lauer, aired Monday as an edition of "Dateline NBC." NBC also reportedly paid a fee in the low seven figures for American rights to air a concert next month in honor of their late mother, Diana, to mark the 10th anniversary of her death.
As for CBS News, "we have no interest in the interview," spokeswoman Leigh Farris said.
