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SBS Buys KROI for $7.5 million
- Thread starter davideduardo
- Start date
Urban One Gives SBS More Time To Close $7.5 Million Purchase Of KROI Houston.
When SBS filed a $7.5 million deal in August to acquire “Praise 92.1” KROI Houston from Urban One’s Sugarland Station Trust, the filing said that SBS can delay the closing
"SBS planned to use some of the proceeds from the Mega TV sale to fund the purchase of KROI. But the cratered deal caused SBS to miss the Nov. 15 closing deadline for KROI. Urban One now says it has extended the closing deadline but wouldn’t reveal by how long."
Looks like there's still some hope left for the KROI-SBS deal.Urban One Gives SBS More Time To Close $7.5 Million Purchase Of KROI Houston.
When SBS filed a $7.5 million deal in August to acquire “Praise 92.1” KROI Houston from Urban One’s Sugarland Station Trust, the filing said that SBS can delay the closingwww.insideradio.com
"SBS planned to use some of the proceeds from the Mega TV sale to fund the purchase of KROI. But the cratered deal caused SBS to miss the Nov. 15 closing deadline for KROI. Urban One now says it has extended the closing deadline but wouldn’t reveal by how long."
The real reason for the extension: If RO/SST was to terminate the deal with SBS, KROI would go back on the market and likely take a further 30 to 60% haircut on the final sale price. RO/SST is apparently willing to drag this out longer in order to hopefully get the full $7.5M price.
I still have not seen any (further) amended APA filed with the FCC. Although the FCC window for the sale closing ends on January 10, 2024, we still have the situation where SBS is currently in violation of the existing APA. I would think an amended version would have to be filed to keep things within a proper legal framework.
Is seven weeks going to make any difference? That lawsuit against Voz Media could languish in the courts for months, or even years. And Voz may be in the same situation as SBS: They don’t have the money.
At least we have a little news about this bizarre situation, which is a horrible look for SBS. Keep searching under those sofa cushions…😖🤣
While technically correct, if both parties are still desiring the same outcome and in agreement then it doesn't really matter until the FCC's clock expires and they can even file for an extension of that.
Remember that Radio One referenced that this deal was close really quickly after the Cox deal was announced. They were very eager to say it was going to a "minority broadcaster" (which also happens to not be competitive with their other formats). I'm not sure it was ever fully shopped around, although you are probably correct that a new deal will come in less than this one.
If this deal does ultimately falls apart, I would not be surprised if the solution is some kind of multi-market exchange with Audacy or iHeart.
SBS works out a payment deal: SBS & Radio One Agree To Amend KROI Sale Terms - RadioInsight
Might we see an LMA for 92.1 put in place while SBS pays off the deal? Or will we have eight more months of Praise on 92.1?
Might we see an LMA for 92.1 put in place while SBS pays off the deal? Or will we have eight more months of Praise on 92.1?
That was my question to after reading Lance's article with more details.
LMAs with payments credited agains the total are fairly common. Buying a radio station on "layaway" while it continues to languish with an existing deadend format for 8 months is not. You would think SBS would want something for their money more immediately than next summer, but with the money officially starting to change hands in large quantities it seems very likely this deal will eventually get completed.
SBS has sufficient BCF to put together the purchase price. Apparently both Orlando and Tampa are now generating positive BCF so that gives further security to lenders.
Neither group is going to want a rimshot signal in Houston today.
I suspect we will see an LMA put in place, but probably not until after the new year…maybe after the January 16 purchase installment is made. Note that there are essentially monthly payments from the end of March, 2024 to the latest closing date at the beginning of July.
Whatever the launch date, SBS needs to give a new format their full effort. Any half-baked soft launch or temporary format is going to damage future performance.
However I would take KROI over any of the eastern rimshots. The new tower has made a noticeable difference in reception.
I know I said I’ve given up on beating this drum, but 92.1 would have been a good place for either Audacy or iHeart to move their respective AM sportstalkers. Huge advantage over whoever was stranded on AM, and would drive a stake in the heart of Gow’s signal challenged KFNC. Look at how well FM sportstalk does in DFW.
92.1 should be fine with an Hispanic targeted format as I doubt SBS will care that much about Montgomery County, though the signal is quite decent there. Much better relevant coverage of the overall market than either of Estrella’s rimshot stations.
Unless El Terrible has some contract SNAFU, they shouldn't have much trouble getting it started, if indeed they are going Regional Mexican.
KROI definitely has some signal issues in Montgomery County and northern Harris, but I agree that the last upgrade helped a lot overall and it is a way better signal than most of the other non-downtown or Missouri City signals. I wouldn't really even label 92.1 a rimshot.
KROI puts a 70 dBu (city-grade) over effectively entire inner loop and the 65 dBu covers basically all of Beltway 8 a longley-rice-style map would likely show it even better than that.
Compare that to a real rimshot like KFNC whose 70 dBu signal doesn't reach the Beltway at all and 60 dBu contour doesn't even make it to downtown.
KROI is surprisingly pretty good in Mont Co post upgrade. I can usually lock in HD at my house on the north side of the county.
With that said, if I were Urban One and really wanted to throw people off with the 92.1 signal, I’d simulcast Legends on it until SBS takes over. 🤣
It also doesn't hurt that 92.1 is less prone to tropo interference - the nearest 100kw co-channel is in Lawton, OK.
I've heard KROI get clobbered by Mexican XHGBO-FM in the Cypress/SH-99 area before on at least two occasions.
XHGBO is supposed to be a Monterrey rimshot according to Wikipedia, but the alleged tower location, height, ERP, and terrain make that seem very unlikely. It's a shame that Mexico doesn't keep an updated database of their AM/FM/TV licenses.
KROI sale delayed until Q3 of 2024:
www.insideradio.com
SBS Purchase Of KROI Houston Now Expected To Close In Q3 2024.
Further details have been released regarding the agreement to push back the original closing date of SBS’s $7.5 million purchase of inspirational gospel “Praise 92.1” KROI Houston from Urban One’s
Speaking only from personal experience, when I lived in Starr County, Texas; 92.1 came in just as well as any signal from Monterrey back when it was based in General Bravo. I’d assume it has to be close to full facilities.
This is what the current coverage for XHGBO at 40kw looks like according to Mexico's IFT:
I do get KTSR from Lake Charles a lot. But 92.1 does usually stay KROI and tropos will bring it in stronger at my location.
I've never heard that one. Hopefully soon.
Update: As expected, KROI has filed an Extension of Consummation with the FCC. As the sale to SBS was approved October 12, the 90 day window to close the deal would have expired on January 10. This extension request (90 days) should move that date back to April 9. Since SBS won’t make its final installment payment until the beginning of July, I would expect another extension to be filed in early April.
Probably six months away from any new format on 92.1, unless we are surprised by an LMA.
Probably six months away from any new format on 92.1, unless we are surprised by an LMA.