Seems like a lot of money for an AM/FM combo in a non-rated market a long way from anywhere. I'll admit to knowing nothing about the area, is there enough of an advertising base there to make this viable?
I grew up in the area from age 9-18, had family there from 1920 to 1993, started my career at the AM in 1971 and helped put the FM on the air in 1974.
The advantage the FM has is a series of repeaters that makes the signal receivable for about 200 miles of the only highway in the area---U.S. 395. It's an area dependent on tourism (skiing at Mammoth, spring and summer trout fishing, the annual Mule Days celebration, the east gate to Yosemite, year-round rock climbing and the direct route from L.A. to Lake Tahoe and Reno) and with weather-related road conditions much of the year.
The businesses that cater to those visitors (most from Southern California) buy advertising to reach those tourists.
The previous owners (who bought it in 2004) paid $965,000 ($1.6 million adjusted). That was well before there were so many listening alternatives, but I think at $4,000 a month (see my post from August 1 above), plus operating expenses, it might be doable.
Nobody's gonna get rich, though. They didn't even when it was literally the only signal for 120 miles and they had advertising aimed at locals
and tourists. There probably is still some of the local target, but not a lot.