As we've been saying in this thread for a long time, there's obviously something in that tower lease that's making it hard to sell.
I suspect the lease was a minor factor at most.
I'll stick with the theory I described in post #845:
"Since this is an illiquid market, the value of one's other properties are only as good as the last sale price for a comparable property. Cumulus could have offered 560 for sale for, say, ten dollars, but then imagine what that would have done to the value of its other AM properties, not exactly elevated to begin with."
(
560)
Note also the language in the explanatory exhibit for the tardy September STA for KZAC:
"Now that RLH is negotiating a purchase contract, it hopes to clear up its operation status and resume service in the near future."
It's possible that Cumulus was engaging in wishful thinking with that statement. I certainly don't know what the state of play with the station was at the time. But it's also entirely possible that Cumulus did have a willing buyer lined up, but that buyer would not come up with an offer that Cumulus deemed sufficient. It may have appeared that Cumulus was in a position where it might take a lowball offer, but, even back in September, the processes may already have been in place for Cumulus to do another prepackaged bankruptcy filing with debtor-in-possession financing. Counterintuitively, that could have given Cumulus a stronger negotiating position. It clearly did not want the station. It knew that it could surrender the license with few consequences. Whatever cash it would have gotten for KZAC would have been orders of magnitude smaller than the DIP financing was going to provide. The party on the other side of the proposed transaction wouldn't have known any of those things. It would have thought that Cumulus was more eager to sell.
There's a concept in negotiation tactics known as BATNA: the best alternative to a negotiated agreement. In Cumulus' case, that was shutting down KZAC and (most likely) surrendering the license.
For all we know, there could have been other offers that were low. No doubt there are bottom feeders out there. But imagine if one of those lowball offers had been taken. It already feels as if the dam has burst for relinquishing AM licenses. The inrushing flood would have even gotten stronger. It would be like a run on a bank. It would also have devalued the AM-heavy San Francisco cluster more than it already has been.
I freely admit that this is speculation. Those who know the actual decision process aren't talking. Cumulus is going private, so we may never find out. We'll just see Cumulus (and others) surrender more AM licenses whenever there's a need to throw off more weight from a sinking ship.
Edit: to make corrections to reflect that the currently active silent STA was filed in September, not August. That STA gave an August date for when KZAC went silent, and the FCC accepted that
prima facie.