• Get involved.
    We want your input!
    Apply for Membership and join the conversations about everything related to broadcasting.

    After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
    If you use a disposable or false email address, your registration will be rejected.

    After your membership is approved, please take a minute to tell us a little bit about yourself.
    https://www.radiodiscussions.com/forums/introduce-yourself.1088/

    Thanks in advance and have fun!
    RadioDiscussions Administrators

SBS Buys KROI for $7.5 million

Mediafrog+ said:
I haven’t found any official filing about the KROI sale to SBS, and there is still nothing on the SBS website about the station acquisition. Since there are two phases to the transfer, things might take a little while. Gives SBS more time to prepare for the launch of the new format.

Guess the identity of the new KTHT owner hasn’t leaked as well.
Click to expand...
There still hasn't been a filing with the FCC. Won't be until the transfer to the trust is approved and closes. SBS will likely take over via LMA when the transfer to the trust in conjunction with the Radio One/Cox deal closing.

Many in the know are aware of the pending buyer of KTHT. Multiple site inspections have been done and work is progressing on a completed deal.
 
lanceventa said:
There still hasn't been a filing with the FCC. Won't be until the transfer to the trust is approved and closes. SBS will likely take over via LMA when the transfer to the trust in conjunction with the Radio One/Cox deal closing.
Click to expand...
So it appears the trust will be used after all. Had been speculated that it would be skipped due to the quick sales of the two spinoffs.
lanceventa said:
Many in the know are aware of the pending buyer of KTHT. Multiple site inspections have been done and work is progressing on a completed deal.
Click to expand...
Well, that is quite a teaser. Perhaps some of those “in the know” types will post here since it is no longer a complete secret. I had VCY America as a likely buyer, but that is only a guess based on market conditions.
 
Loverofradio said:
I’m telling y’all. RO will have to put 97.1 into a trust. They know no one wants it. They’re stuck with it for awhile. Can they still package 97.1/93Q for sales if one station is in a trust? If so, thats the best possible outcome
Click to expand...
So was I completely off about one of or both stations being placed into a trust?
 
Loverofradio said:
So was I completely off about one of or both stations being placed into a trust?
Click to expand...
The trust is just a temporary ownership situation to bridge the gap between RO closing on KKBQ/KHPT/KGLK and the ultimate sale closing of KROI and KTHT, in order to comply with market cap limits. You made it sound as if no one was interested in purchasing either station, which is not the case. SBS is buying KROI, and KTHT apparently has a buyer lined up, but their identity is unknown for the moment while due diligence is carried out by the potential new owner.
 
We’ve been talking about ktht’s potential new owner and site inspections for a month. How long does it take? I’ve seen sales close in days. Why is this case different?
 
Mediafrog+ said:
The trust is just a temporary ownership situation to bridge the gap between RO closing on KKBQ/KHPT/KGLK and the ultimate sale closing of KROI and KTHT, in order to comply with market cap limits. You made it sound as if no one was interested in purchasing either station, which is not the case. SBS is buying KROI, and KTHT apparently has a buyer lined up, but their identity is unknown for the moment while due diligence is carried out by the potential new owner.
Click to expand...
I just meant no one was interested in buying ktht and/or RO not getting the price they want for 97.1
 
Loverofradio said:
We’ve been talking about ktht’s potential new owner and site inspections for a month. How long does it take? I’ve seen sales close in days. Why is this case different?
Click to expand...
One example of a delay situation is when due diligence reveals issues with transmitter site leases or environmental issues on owned land. There are many reasons why a filing is not instantly made.
 
Loverofradio said:
We’ve been talking about ktht’s potential new owner and site inspections for a month. How long does it take? I’ve seen sales close in days. Why is this case different?
Click to expand...

Sales have never close in days. From time of filing to closing there is usually a 60-90 day timeline for petitions to deny and FCC due diligence before a sale is approved and no station license sale can close without FCC approval.

The buyer has agreed in principle. As stated above, the 92.1 KROI sale has also not been filed with the FCC yet. In that case SBS made a public announcement that they are the buyer. KTHT's buyer has willingly not done so.

Loverofradio said:
I just meant no one was interested in buying ktht and/or RO not getting the price they want for 97.1
Click to expand...
And multiple people said that there were interested parties and they were getting the price they wanted.
 
lanceventa said:
Sales have never close in days. From time of filing to closing there is usually a 60-90 day timeline for petitions to deny and FCC due diligence before a sale is approved and no station license sale can close without FCC approval.
Click to expand...
I think the poster wondered why the filing was taking so long. I can think of dozens of reasons, and posted a couple of examples. Another set of reasons has to do with making sure necessary leases are transferrable.
 
SBS reported their first quarter results yesterday and in the release to investors they stated an expected closing for KROI in the third quarter of 2023. I do not see any mention of an LMA.

Their investor conference call is scheduled for June 8th so we might get a little more color then.
 
Any word on studio plans? Does Radio One still have all off the space they had when News 92 was around, or has that long since been sublet?

If the former, would seem like they could get out of the Cox facilities sooner rather than later.
 
TheBigA said:
It may appear that a sale has closed sooner because the parties have agreed to an LMA. But all that means is that the new owner can begin the new format before FCC approval.
Click to expand...
I think you mean that the sale has "progressed". A "closing" only happens after the FCC approval and then, only if both parties remain in total agreement on the terms and conditions.

In fact, the closing may even include renegotiations of certain terms of the original deal based on findings of due diligence procedures and even changes in market conditions.
 
DavidEduardo said:
"Spanish Broadcasting System has signed a deal to buy gospel “Praise 92.1” KROI Houston from Urban One for $7.5 million. The transaction marks the Hispanic broadcaster’s entry into market No. 6. KROI is one of two FMs Urban One is spinning off to comply with the FCC’s local ownership limits to close its $27.5 million purchase of Cox Media Group’s four-FM cluster in H-Town."

From: Inside Radio
Click to expand...
Since when is a dumpster fire worth $7,500,000.00?
 
Engineering said:
Since when is a dumpster fire worth $7,500,000.00?
Click to expand...
I did not say the transaction was a dumpster fire. The "dumpster fire" has been Radio One's purchase and administration of this station since it bought it, ending with a $57,000,000 loss on the purchase and even greater operating losses over the years.
 


Back
Top Bottom