Clear Channel to sell three Bay Area stations

[BossRadioDJ]

From http://penpressclub.org/2008/01/clear-channel-to-sell-3-bay-area

Clear Channel has agreed to sell three of its 10 Bay Area radio stations in a deal with the FCC that will allow the company to be taken over by private investors. The stations going on the block operate out of San Jose:

* KCNL-FM "Channel 104.9," alternative rock

* KFOX 98.5 (actually KUFX-FM), classic rock

* KSJO-FM 92.3 "La Preciosa," Spanish

Clear Channel is keeping the seven stations that originate from its studios at 340 Townsend St. in San Francisco: KNEW-AM 910, "Green 960" KKGN-AM, "Star 101.3" KIOI-FM, "98.1 KISS-FM" (KISQ-FM), 103.7 KKSF-FM, 106 KMEL-FM and "Wild 94.9" KYLD-FM.

Nationwide, Clear Channel is jettisoning 42 stations in the top 100 markets as part of the $19.8 billion buyout by a group led by Thomas H. Lee Partners LP and Bain Capital Partners LLC. The sell off is necessary so that the new owners will comply with revised FCC ownership limits.

 

[RadioStarOne]

Now the question is: Which religious broadcaster will Clear Channel sell these stations to in order to further lessen competition on the radio in the bay area?

 

[only1moore]

Well, whoever buys the San Jose stations could flip one of them to Top 40 or Rhythmic. Someone should fill the vacancy there.

 

[RadioStarOne]

It would be nice to see Entercom pick up the three stations. That would make for some interesting radio for sure!

 

[ty567]

So what does this mean for the La Preciosa Network? Isnt San Jose the "home base" for the network?

 

[weav]

I'm guessing they'll move the home base to Salinas, more the spiritual home of the format...

 

[Madmansam]

How about Citadel Broadcasting? They only have 2 AM's in San Francisco and no FM's.

 

[create]

Last I heard, they had already moved the La Preciosa studios to another location and KSJO is now just another affiliate. There is some doubt as to whether the proposed CC buyers will still go through with the purchase, so CC might wind up keeping these stations. If they do have to sell them it won't be easy.

 

[RadioStarOne]

Are you kidding? Clear Channel would have no problem at all selling these stations! Watch out even Next Media could scoop these stations up!

 

[sfradio]

Are you kidding? Clear Channel would have no problem at all selling these stations! Watch out even Next Media could scoop these stations up!

yeah, the only station probably nobody wants is 104.9 due to the sucky signal

 

[davideduardo]

From http://penpressclub.org/2008/01/clear-channel-to-sell-3-bay-area

Clear Channel has agreed to sell three of its 10 Bay Area radio stations in a deal with the FCC that will allow the company to be taken over by private investors. The stations going on the block operate out of San Jose:

(list snipped)

Nationwide, Clear Channel is jettisoning 42 stations in the top 100 markets as part of the $19.8 billion buyout by a group led by Thomas H. Lee Partners LP and Bain Capital Partners LLC. The sell off is necessary so that the new owners will comply with revised FCC ownership limits.

This is a borderline inaccurate report. CCU put the three SJ stations in a trust, called the Aloha Trust, in June of last year, 7 months ago, because they knew the three could not be kept under the new "Market Based" rules. there was no "agreement" with anyone; Clear moved to put these and the other over-the-cap stations in a trust before any applications were filed with the FCC and before submitting to the DOJ.

What has triggered the move to sell is the final approval by the FCC; what they set the trust up to do can now be set in motion. But there was no "agreement" and this is old news.

 

[BossRadioDJ]

What has triggered the move to sell is the final approval by the FCC; what they set the trust up to do can now be set in motion. But there was no "agreement" and this is old news.

But the FCC agreement was just announced this past week, and Clear Channel can now proceed on its plan for going private, which should be accomplished by March 31. Spinning off the stations is part of that process, whether or not they are sold or remain in the trust.

 

[weav]

Are you kidding? Clear Channel would have no problem at all selling these stations! Watch out even Next Media could scoop these stations up!

You laugh now...

 

[davideduardo]

What has triggered the move to sell is the final approval by the FCC; what they set the trust up to do can now be set in motion. But there was no "agreement" and this is old news.

But the FCC agreement was just announced this past week, and Clear Channel can now proceed on its plan for going private, which should be accomplished by March 31. Spinning off the stations is part of that process, whether or not they are sold or remain in the trust.

I have no idea what an FCC "agreement" is... the term itself suggests a negotiation, and that is far from reality.

Clear decided to accept a private equity bid for all shares. Clear realized that the current rules will not permit it to transfer to the new owners a number of stations. In June of 2007, over 7 months ago, Clear realized used the usual procedure for untransferrable stations, which is to put them in a trust pending regulatory approval. No negotiation, just procedures to insure compliance with the rules that will apply to the sale.

Clear Channel can not "now proceed" as they need the approval of the DOJ before they can legally proceed to a closing. The Q1 closing date is based on Clear's belief that the DOJ will rule favorably and mirror the FCC.

But there is no "agreement." Just compliance.

 

[ty567]

I'm guessing they'll move the home base to Salinas, more the spiritual home of the format...

Yeah but they just came back to San Jose after a couple year stay in Salinas.

 

[newsperson]

Newsperson replies:

Citalel is not buying any stations now and San Jose is really a seperate market that would require additional management.

It is possible that the 3 stations could go to a buyer that is new to the market?

Any ideas on someone new? What about format changes?

How much money for the 3 stations?

Newsperson

 

[create]

I'm guessing they'll move the home base to Salinas, more the spiritual home of the format...

Yeah but they just came back to San Jose after a couple year stay in Salinas.

Yes, they would not need to move from their current San Jose location as it is no longer in the KSJO/KCNL/KUFX studios.