HOT 97.5 Sold to Good News Broadcasting

[KilowattKat]

WOW! I didn't see this one coming...

Good News Broadcasting Network Acquires Hot 97.5 Phoenix

Zelus Media is selling Hot AC "Hot 97.5" KMVA Dewey-Humboldt/Phoenix AZ to Good News Broadcasting Network for $1.5 million. Associated

radioinsight.com

 

[NYAZSporty]

Just what Phoenix needs, another religious station alongside 3 Christian FMers in Air1, FLR, & K-Love as well as 2 AM Christian stations owned by Salem. Looks like the other station that airs the same format for the East Valley, Hot 103.9, will continue.

 

[KilowattKat]

Just what Phoenix needs, another religious station alongside 3 Christian FMers in Air1, FLR, & K-Love as well as 2 AM Christian stations owned by Salem. Looks like the other station that airs the same format for the East Valley, Hot 103.9, will continue.

I suppose they feel a lot of souls need to be saved in the Valley. Lol.

Knowing we can only speculate why they are selling iit off... it's possible most Hot listeners are listening to 103.9, and breaking up the simulcast won't have that negative of an effect, coupled with a need for a cash fusion. They may be struggling.

 

[TheBigA]

More prayer in the Media Hut for Dr. Akbar & Nurse Jeff.

 

[ted chittenden]

Let's see. The late Charlie Kirk started his religious/political organization in Phoenix, and that city (my hometown) is still the headquarters for that organization today. So I suppose it shouldn't surprise me that the Valley of the Sun should get another batch of holy rollers (even if it's from a satellite) to welcome new tourists, etc.

And while KZON's signal does have problems in far northern and western Phoenix (and the suburbs in those directions), the fact is that most of the station's listenership comes from the Scottsdale/Tempe/Chandler/Mesa areas south and east of Phoenix and their reception of the 103.9 mHz signal won't be affected.

That said, I'm curious about Zeelous' holding on to the callsign and inttelectual property of KMVA (as stated in Lance's report). It makes me wonder if the company is looking at purchasing another signal and putting the KMVA callsign on it eventually? To that end, if one is thinking long term (say beyond 2028), assuming everything else is equal, KAHM might be a good candidate. Another possibility? Well how about KZNY at 104.3 mHz. The Sunny format might be playing well in the Verde valley but I doubt that's the population H. Sierra wanted to reach with that one.

I guess we'll just have to wait and see.

 

[DavinaR]

We did not even know this station was for sale, I would say a surprise reading this news today.

 

[K.M. Richards]

We did not even know this station was for sale, I would say a surprise reading this news today.

It has become the standard in recent years for the religious broadcasters to negotiate with owners in private, with the station never being listed for sale.

It's almost as if they covet those stations. (Snarkiness intentional.)

 

[EricStein]

I suppose they feel a lot of souls need to be saved in the Valley. Lol.

Knowing we can only speculate why they are selling iit off... it's possible most Hot listeners are listening to 103.9, and breaking up the simulcast won't have that negative of an effect, coupled with a need for a cash fusion. They may be struggling.

The buyer is affiliated to the Seventh-Day Adventist Church, which is a smaller subset of the population than mainstream Protestants, Catholics, and even LDS. The Kellogg Cereal Company was founded on 7DA ideals, which can be described as bizarre to some. I wonder how these people have the money to buy a high-powered station to target such a tiny population?

 

[TheBigA]

I wonder how these people have the money to buy a high-powered station to target such a tiny population?

My guess is they're not aiming at their followers. They're aiming at everyone else. That's evangelism.

From what I can see, they have quite a diverse programming mixture.

Seems to me at one time SDAs were involved in broadcast regulation. They often filed opinions on FCC rules.

And yes, they're based in Battle Creek Michigan, home of Kelloggs. They believe in cleansing of the bowel.

 

[fybush]

It has become the standard in recent years for the religious broadcasters to negotiate with owners in private, with the station never being listed for sale.

It's almost as if they covet those stations. (Snarkiness intentional.)

With my station broker hat on...

Not only is there no requirement that a station be publicly listed for sale, it's my belief that it's usually neither desirable or helpful to do so.

If you're the seller, you don't want your staff, your clients or your competitors knowing your station might be on the market.

If you're the broker, you don't want your competitors or clients to necessarily know what you're trying to sell unless either (a) they can help you get a deal done, which happens fairly often or (b) the deal is already done.

And you don't want to be bothered by tire-kickers who don't have the resources to actually buy what you're selling. It happens more than you'd think.

In most cases, the universe of potential buyers these days is not very large. A good broker should come to the table with a list already in place of possible buyers. And yes, that usually includes religious broadcasters, because a seller's broker has a duty to the client to get the best offers possible.

I would add that in most cases, I've found that dealing with the larger religious broadcasters as a broker is a very straightforward and simple process. They know what they want and what they don't want, they usually come to the table with a firm price in mind, they generally have cash and can close quickly, and many of them have experienced staffers who know engineering, legal and all the ins and outs of the station acquisition process. Both brokers and sellers appreciate that.

Would I love to have a larger pool of potential buyers to bring to my clients? Of course I would. Have there been occasions when a deal has happened so quickly and quietly that I've missed out on an opportunity as a buyer's broker to get my client in with an offer? Sadly, yes. It's a tough business in this economy. If you're not part of it, there's a lot that doesn't always appear to make sense from the outside.

 

[EricStein]

Let's see. The late Charlie Kirk started his religious/political organization in Phoenix, and that city (my hometown) is still the headquarters for that organization today. So I suppose it shouldn't surprise me that the Valley of the Sun should get another batch of holy rollers (even if it's from a satellite) to welcome new tourists, etc.

And while KZON's signal does have problems in far northern and western Phoenix (and the suburbs in those directions), the fact is that most of the station's listenership comes from the Scottsdale/Tempe/Chandler/Mesa areas south and east of Phoenix and their reception of the 103.9 mHz signal won't be affected.

That said, I'm curious about Zeelous' holding on to the callsign and inttelectual property of KMVA (as stated in Lance's report). It makes me wonder if the company is looking at purchasing another signal and putting the KMVA callsign on it eventually? To that end, if one is thinking long term (say beyond 2028), assuming everything else is equal, KAHM might be a good candidate. Another possibility? Well how about KZNY at 104.3 mHz. The Sunny format might be playing well in the Verde valley but I doubt that's the population H. Sierra wanted to reach with that one.

I guess we'll just have to wait and see.

I think they'll move the KMVA calls to 103.9, ditch the failing "94.9 The Zone" experiment, and return that translator to a Wow Factor simulcast. They can't be making money with The Zone (and they have to pay SonicTrek a monthly fee for the technology licensing too).

If it wasn't for it feeding the translators via HD2/3, I think 103.9 would have been the frequency they would have sold. That would have made things easier for their engineers and accountants (and eliminate one more tower lease).

 

[lanceventa]

I think they'll move the KMVA calls to 103.9, ditch the failing "94.9 The Zone" experiment, and return that translator to a Wow Factor simulcast. They can't be making money with The Zone (and they have to pay SonicTrek a monthly fee for the technology licensing too).

If it wasn't for it feeding the translators via HD2/3, I think 103.9 would have been the frequency they would have sold. That would have made things easier for their engineers and accountants (and eliminate one more tower lease).

None of this is the case.

The owner is a big proponent of the Zone brand and why it was launched to begin with. Good News specifically wanted 97.5. I was told that 103.9 accounts for about 2/3 of Hot's listenership at this point.

 

[ted chittenden]

Let's see. The late Charlie Kirk started his religious/political organization in Phoenix, and that city (my hometown) is still the headquarters for that organization today. So I suppose it shouldn't surprise me that the Valley of the Sun should get another batch of holy rollers (even if it's from a satellite) to welcome new tourists, etc.

And while KZON's signal does have problems in far northern and western Phoenix (and the suburbs in those directions), the fact is that most of the station's listenership comes from the Scottsdale/Tempe/Chandler/Mesa areas south and east of Phoenix and their reception of the 103.9 mHz signal won't be affected.

That said, I'm curious about Zeelous' holding on to the callsign and inttelectual property of KMVA (as stated in Lance's report). It makes me wonder if the company is looking at purchasing another signal and putting the KMVA callsign on it eventually? To that end, if one is thinking long term (say beyond 2028), assuming everything else is equal, KAHM might be a good candidate. Another possibility? Well how about KZNY at 104.3 mHz. The Sunny format might be playing well in the Verde valley but I doubt that's the population H. Sierra wanted to reach with that one.

I guess we'll just have to wait and see.

After thinking about this last night, there is one other more obvious thing that Zeelus can do with the KMVA callsign, one that might tick some people off (including yours truly) but one that makes economic sense. (And, let me state upfront that I am in no position to know if what I'm about to say is currently being considered by the company but it does seem obvious to me now that its management may be thinking about this behind closed doors.)

The idea would be to dump KOAI and "The Wow Factor," on 95.1 and replace it with KMVA and its hot AC format. The reasons Zeelus might do this are as follows:

1) Wow's audience is too old.
2) There are quite a few younger listeners living in the areas now served by KOAI who were unable to receive KZON well.
3) There is at least one oldies alternative (KAZG) that (sort of) covers the area, plus another (KSCW-LP, at 103.1 mHz) that serves a smaller concentrated area around Sun City.

I hope I'm wrong. But, if the scenario I outlined above occurs, you read it here first!

 

[TheBigA]

The idea would be to dump KOAI and "The Wow Factor," on 95.1 and replace it with KMVA and its hot AC format.

It depends on the company's commitment to John Sebastian. The Wow Factor is John's baby. He launched it in November of 2021. That's five years ago. It's possible his contract will be up this fall. At some point they might move something else to that frequency.

 

[101tm]

It depends on the company's commitment to John Sebastian. The Wow Factor is John's baby. He launched it in November of 2021. That's five years ago. It's possible his contract will be up this fall. At some point they might move something else to that frequency.

I’m not sure what happened, but KOAI’s ratings have taken a massive hit from the last time I really paid attention to Phoenix. I do notice they’ve been forced to “modernize” the playlist to an extent which may have led to the decline.

 

[ted chittenden]

I’m not sure what happened, but KOAI’s ratings have taken a massive hit from the last time I really paid attention to Phoenix. I do notice they’ve been forced to “modernize” the playlist to an extent which may have led to the decline.

For those who are wondering, "modernizing" the playlist meant dropping the 1960s titles and adding more songs from the 1980s, something that occurred earlier this year. The hope (I think) was/is to attract more advertisers by attracting a slightly younger audience. Keep in mind that, unlike KAZG, Zeelus' other major outlet, KZON, is not doing well in the ratings itself and therefore Zeelus cannot piggyback KOAI on the success of its other efforts.

 

[lanceventa]

It depends on the company's commitment to John Sebastian. The Wow Factor is John's baby. He launched it in November of 2021. That's five years ago. It's possible his contract will be up this fall. At some point they might move something else to that frequency.

The Wow Factor launched in September 2019 (The Wow Factor Debuts In Phoenix)

It was always done on a consulting basis for him to offer the brand in syndication, which has never happened anywhere else.

 

[EricStein]

None of this is the case.

The owner is a big proponent of the Zone brand and why it was launched to begin with. Good News specifically wanted 97.5. I was told that 103.9 accounts for about 2/3 of Hot's listenership at this point.

There's a difference between being a proponent of the "Zone" brand/format and launching something so haphazardly that it kills that brand equity. The proceeds of the 97.5 sale most likely will pay some debt off, but it won't bring human talent to a station that's all over the map format-wise and has a limited signal.

Then, there's also The Zone adopting the "Arizona's Independent Radio" slogan, when KWSS-LP's slogan has been "Independent Radio" for years. 94.9 sounds nowhere near being an "independent" station. KWSS should have trademarked that.

 

[indieradioguy]

My guess is they're not aiming at their followers. They're aiming at everyone else. That's evangelism.

From what I can see, they have quite a diverse programming mixture.

Seems to me at one time SDAs were involved in broadcast regulation. They often filed opinions on FCC rules.

And yes, they're based in Battle Creek Michigan, home of Kelloggs. They believe in cleansing of the bowel.

I was just mentioning the movie "Road to Wellville" to someone a few days ago - which is about that very thing.

To the issue at hand, I would rather have those new owners on dial than another - another! - station playing the same baker's dozen of 80's and 90's "alt-mold" every hour, only to have another round of employee layoffs because the bean counters didn't want to alienate any buyers.

 

[KilowattKat]

It was posted in another thread (by maybe @davideduardo) that the highest billing Zelus station is Power 98.3, with something like 80% higher revenue than the Wow Factor, which is the lowest billing.

I have to agree with @ted chittenden, the retention of the KMVA calls points toward the end of the Wow...I expect to see a Hot 103.9/95.1 coming soon.