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KQ103

B

broadcastamerica

Last I looked WHKQ/KQ103 was still owned by Gross Communications. The transfer was approved long ago and the freeze on transfers pending license renewal which was granted on January 27,2012 has passed so the questions are:

1) Are they short on the funds to close?

2) Is the station underperforming their expectations and are they getting second thoughts about closing?

3) What will the Gross family do with it if they get it back until they can remarket and resell it?

Going to be interesting since approvals of transfer by the FCC have a limited shelf life although they can be extended. The contract has a default date although there are remedies. What is going to happen? Stay tuned to "As The Tower Turns".
 
broadcastamerica said:
Last I looked WHKQ/KQ103 was still owned by Gross Communications. The transfer was approved long ago and the freeze on transfers pending license renewal which was granted on January 27,2012 has passed so the questions are:

1) Are they short on the funds to close?

2) Is the station underperforming their expectations and are they getting second thoughts about closing?

3) What will the Gross family do with it if they get it back until they can remarket and resell it?

Going to be interesting since approvals of transfer by the FCC have a limited shelf life although they can be extended. The contract has a default date although there are remedies. What is going to happen? Stay tuned to "As The Tower Turns".
Click to expand...


Looks like they're doing a time-brokered deal for one year. (an LMA of sorts I guess)

https://licensing.fcc.gov/cdbs/CDBS...?appn=101441691&qnum=5040&copynum=1&exhcnum=2
 
Section 5.1 of the Asset Purchase Agreement calls for closing 5 days after finality which was a long time ago. With closings now taking place again and this being the 8th one has to wonder when default becomes a real issue. Typically a TBA terminates at the time of closing. I suppose that the Gross family might have to allow the TBA to continue based on the fact that there was no condition in this APA that would terminate the TBA in case of default. I am sure that the brokerage firm is starting to chew their nails looking at the potential loss of a nice commission.
 
Remember Adam Linderman made his money dealing in fine art. One cannot be successful in that business without becoming very shrewd and not emotionally attached to what one is buying or selling. The world knows that he bought WLOQ for a bargain and the economy is now improving. I wouldn't be surprise that he may have gotten some rather generous offers recently. My bet is when he has right deal inked, he'll show up at closing with someone else's money.
 
I have heard some totally unsubstantiated rumors-and I repeat totally unsubstantiated rumors as in"street talk" between broadcasters and brokers over dinners- that the station is even being remarketed by the buyer for more than the sale price..but they have to close to be able to immediately resell it. I have a client who routinely does put down escrow money and then during the FCC approval process goes out and raises investment capital for the closing so your speculation does in fact have real world roots since I can site several examples of such deals. With the improving economy and with the question of impeding default of the APA would the Gross family not do better to default Linderman and remarket it themselves while honoring the TBA to Linderman unless he came back in at a better selling price? Just an errant thought.
 
Tx said:
Remember Adam Linderman made his money dealing in fine art. One cannot be successful in that business without becoming very shrewd and not emotionally attached to what one is buying or selling. The world knows that he bought WLOQ for a bargain and the economy is now improving. I wouldn't be surprise that he may have gotten some rather generous offers recently. My bet is when he has right deal inked, he'll show up at closing with someone else's money.
Click to expand...

Station prices are linked more to the current conditions of radio than the economy.

Orlando radio revenue is off 40% from 2007, and even more if you adjust for inflation.

The PPM has reduced ratings by about 35%, making the point delivery that much lower for a station, even if they got the same share in PPM as they had in the diary.

Radio is under pressure from new media, as is all old media.

WHKQ is a C2, only 22 kw at 700 feet, not a full C.

Overall, the price was not that far under market value. Perhaps all of our favorite broker, Mr. Tillery, esq., will check in with his view.
 
...doesn't mean the closing hasn't occurred. Just means the Notice of Consummation of Sale hasn't made it to the FCC's web page.
 
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