See my comment above. There's at least $3.8 million in escrow for the license transfer, plus whatever else was agreed to in the not required to be filed deal for the Mega TV assets.
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SBS Buys KROI for $7.5 million
- Thread starter davideduardo
- Start date
There continues to be talk about Urban One taking the urban station and SBS taking the crossover hip hop Churban format. The Churban format is highly Hispanic in audience composition and would fit in with SBS' two Spanish language stations.
I'm all for it if it doesn't end up like DJ106.7 and LA96.3.
I'm reminded of Disney in a way. After struggling to make their own material stick catering to the male demos they were after, they just decided to buy Marvel and Star Wars.
MediaCo is currently building new studios for both stations (and seemingly room for more).
I just got a email news alert that SBS has called off the sale of Mega TV to VOZ. If you will recall SBS had planned to use some of the $64 million in proceeds from the sale to close this purchase of KROI.
With that deal now off the table, I would expect either SBS to secure additional financing very quickly, if they haven't already to close on KROI once the FCC grants the assignment application, or will terminate the deal entirely. I think the former is most likely.
With that deal now off the table, I would expect either SBS to secure additional financing very quickly, if they haven't already to close on KROI once the FCC grants the assignment application, or will terminate the deal entirely. I think the former is most likely.
Well, not a surprise there, as it appears Voz Media simply doesn’t have the money to complete some deals they had in the works. For instance, Voz never followed through on its purchase of Americano Media, and now Americano might be broke: https://www.miamiherald.com/news/local/community/miami-dade/article278620184.html
Wonder what the overall breakup fee might be for the failed sale of Mega-TV and the broadcast TV stations? IIRC it was $3.8M for just the OTA portion of the deal. Perhaps a larger breakup payout for the overall transaction would cover the KROI purchase price.
I agree it is more likely SBS will eventually (somehow) close on the KROI acquisition, but I still see those dark-feathered birds named EMF and VCY circling overhead.
I looked through the APA but couldn't find the breakup fee total. 3.8 would be just about half of the KROI deal.
SBS is a pretty big operation all things considered and I suspect they could get there hands on 4-8 million pretty easily if they want to.... a new revolver, mortgage/sell some real estate, loan from founding family or other executive, etc.
Wouldn't be surprised if VOZ starts selling off it's own properties... whatever the hell they can possibly sell besides their three studios and offices.
SBS Scraps Deal To Sell TV Division To Voz Media.
Seven months after Spanish Broadcasting System cut a deal to sell its Mega TV division to Voz Media, the deal has been cancelled. SBS says it terminated the $64 million
Upon VOZ breaching the agreement to close the deal by 9/15/2023:
“Voz did not close the transaction, despite the contractual obligation to do so,” SBS said Friday in a regulatory filing, adding that it served Voz with a notice of termination of the agreements.
In the filing, SBS said the decision to end the deal was made “after careful consideration and a thorough review of the circumstances surrounding the asset purchase agreements,” which were made between SBS and Voz Media on Feb. 9.
They were looking for the VOZ deal to retire their existing high-interest loans. Whether they can figure out how to get additional financing when their debt is severe remains to be seen. They have been walking on the edge for the last 50 years or so.
Who might buy the SBS TV assets? I recall their MEGA-TV outlet in Houston was always the irrelevant fifth wheel amongst the full power Spanish language stations during its decade here. Are there serious players who would want those?
So I guess it will depend on how patient Sugarland Station Trust is, and if they adhere to the 11/15/2023 target date for closing on KROI (FCC approval should come before then.) I don’t think they would have any trouble finding a different potential owner, but they might see a further sale price drop of ~$2-3M.
I could see the stations being bought but with the network dissolving as a result. Maybe a company like Tegna might want WSBS 22 to flip it to True Crime Network, Quest or Twist.
I don't see a scenario where sbs could not come up with a few Mil to close the deal with Radio One. Good Ol Alberto Rodriguez can't seem to not brag about how much money Mega NYC makes so I'm sure Alarcon can come up with the money.
Doesn't he also brag about Regional Mexican KLAX-FM? I remember seeing something with WLEY, KLAX and KRZZ saying something along the lines of "Regional Mexican Success!"
I still think that 92.1 would be a great addition for Hope media.
unless hope will spin off the signal challenged 91.7
@DavidEduardo any day part where the 91.7 station actually beats any other Spanish station in town?
KHVU, in 12+, is 24th overall, 28th in AM, 20th in midday, 1st in afternoon, 21st at night and 24th on weekends.
It beats KAMA in middays, and Afternoons. It beats KOVE in evenings.
In 18-49, it does not beat any of the licensed Spanish stations (not including translators).
Religious stations program to anyone who will listen. Commercial stations in Spanish optimize for 18-49 or some subset of 18-49. So it is hard to compare them as they have a totally different set of audience goals.
That’s crazy 1st in pm drive ? How does that happen