SBS Buys KROI for $7.5 million

[BamaTX]

I don't like corridos alterados, at least in Mexico, it is highly regulated and the radio cannot transmit that content. Therefore, a difference is clearly seen between a "Mexican regional" station in the US versus a "Grupera" in any city in Mexico.

I'm well aware of the weird censorship. Mexico radio gives me Soviet vibes. They play the national anthem twice a day, they broadcast political party propaganda ads and call them PSAs, and then they play the National Hour show on EVERY SINGLE MEXICAN STATION every Sunday evening.

Having said that, XHRR-FM is a border station that serves the Rio Grande Valley with a Regional Mexican format. I'm pretty sure I've heard them blast some of these corridos across South Texas. I'm guessing no one cares to report them since they target American listeners.

 

[Ryan Williams]

Following up.... I've been out of town and missed this last week, but SBS released their quarterly report and on page 14 there is a follow up on their KROI acquisition.

I am attaching a highlighted screenshot of that page since their investor relations site does not provide a pdf or deep linking.

It looks like it is still on track for a November 27th closing. Reading between the lines, I don't think this is going to happen meaningfully before that.

 

[Mrtejano]

I know money is hard to get, but for a company to struggle this hard to buy another station seems kind of strange. I mean I’m not in the radio business but do purchases usually take this long? Are they even going to be able to maintain a station when they actually do finish paying it? Or are we going to see a short lived SBS in the market till they put it out there in the market again??

 

[radioislife2020]

I know money is hard to get, but for a company to struggle this hard to buy another station seems kind of strange. I mean I’m not in the radio business but do purchases usually take this long? Are they even going to be able to maintain a station when they actually do finish paying it? Or are we going to see a short lived SBS in the market till they put it out there in the market again??

They can afford it!

 

[radioislife2020]

Following up.... I've been out of town and missed this last week, but SBS released their quarterly report and on page 14 there is a follow up on their KROI acquisition.

I am attaching a highlighted screenshot of that page since their investor relations site does not provide a pdf or deep linking.

It looks like it is still on track for a November 27th closing. Reading between the lines, I don't think this is going to happen meaningfully before that.

expect a Nov 1st announcement or a few days after

 

[Mediafrog+]

Are they even going to be able to maintain a station when they actually do finish paying it? Or are we going to see a short lived SBS in the market till they put it out there in the market again??

I doubt SBS would quickly bail from the market, as any flip of 92.1 in yet another sale might lose 30-50% of the $7.5M to purchase the station in the first place. And who would buy? Audacy and iHeart are crunched financially. Univision is unenthusiastic about radio. EMF has pulled back on acquisitions. Does MediaCo have the money? VCY finally ready to make a move? Cumulus?

If the initial SBS format fizzles, it is more likely they’d try something else, and if that fails as well, then bail out…but that would be sometime in the 2030s, not any time soon.

I have the feeling SBS will do okay with 92.1, though the status as a stand-alone in the market raises an eyebrow.

 

[radioislife2020]

I doubt SBS would quickly bail from the market, as any flip of 92.1 in yet another sale might lose 30-50% of the $7.5M to purchase the station in the first place. And who would buy? Audacy and iHeart are crunched financially. Univision is unenthusiastic about radio. EMF has pulled back on acquisitions. Does MediaCo have the money? VCY finally ready to make a move? Cumulus?

If the initial SBS format fizzles, it is more likely they’d try something else, and if that fails as well, then bail out…but that would be sometime in the 2030s, not any time soon.

SBS has the experience they are doing it in Orlando and Tampa .Remember they have a massive event company (events are a major part of the sbs revenue .. something Univision does not have in the Houston market.

 

[BamaTX]

I wonder if we will see their newly launched "La Privada" format? If the rumor is true that the impending format "went live" inside SBS' walls for tune-up purposes, then the timeline would match it close to what launched at KLAX-HD2 in Los Angeles. There's not much to fiddle with on your run-of-the-mill RM station. But a "corrido tumbado/belico" format that has never been tried before? Yeah, that would need a lot of work.

The demographics may be too young, but it could help differentiate 92.1 in a market that is over crowded with Regional Mexican stations.

 

[101.9 La Kalle]

I wonder if we will see their newly launched "La Privada" format? If the rumor is true that the impending format "went live" inside SBS' walls for tune-up purposes, then the timeline would match it close to what launched at KLAX-HD2 in Los Angeles. There's not much to fiddle with on your run-of-the-mill RM station. But a "corrido tumbado/belico" format that has never been tried before? Yeah, that would need a lot of work.

The demographics may be too young, but it could help differentiate 92.1 in a market that is over crowded with Regional Mexican stations.

That'd be interesting. I wonder how it'd be labeled, would it be called a “Regional Mexican CHR” or just “Regional Mexican?”

 

[radioislife2020]

That'd be interesting. I wonder how it'd be labeled, would it be called a “Regional Mexican CHR” or just “Regional Mexican?”

Friends workings for sbs tell me that The klax Hd2 format is just something that Juan Carlos Hidalgo is experimenting with and will be rolled out in other markets and maybe even Houston but for sure not on the main 92.1 signal. But it is true that the real format is being sampled inside the walls of sbs LA and NYC

 

[Mrtejano]

They most likely try a LATINO MIX format where they play all lots of new music, Peso Pluma, Fuerza Regida, Prince Royce, ect ect almost like WILD 104 in the Valley.

 

[ChuckTiller]

Well, I thought this was funny. "Inside Radio" seems to think that KROI is in Dallas.

SBS Nearing Houston Market Entry As KROI Acquisition Nearly Paid-Off.

Spanish Broadcasting System is closing in on its planned entry into the Dallas radio market. It will pay another $300,000 this month to Urban One as part of deal to

www.insideradio.com

 

[Mediafrog+]

Well, I thought this was funny. "Inside Radio" seems to think that KROI is in Dallas.

SBS Nearing Houston Market Entry As KROI Acquisition Nearly Paid-Off.

Spanish Broadcasting System is closing in on its planned entry into the Dallas radio market. It will pay another $300,000 this month to Urban One as part of deal to

www.insideradio.com

The article has been corrected. However it still has an error: The original closing date was supposed to be no later than November 15, 2023, which was first pushed back to July 1, 2024, then pushed back again to no later than November 27, 2024. It would surprise no one on this board if the closing date was again delayed into 2025.

Friends workings for sbs tell me that The klax Hd2 format is just something that Juan Carlos Hidalgo is experimenting with and will be rolled out in other markets and maybe even Houston but for sure not on the main 92.1 signal.

A reminder that we might be looking at two new formats launching in 92.1 at the same time, or close together. Interesting.

Also raises the possibility of an HD-3 and HD-4 of 92.1 being leased out.

Any word as to whether the KROI call will be changed? (Standard disclaimer that calls are largely irrelevant these days, but SBS might want to distance itself from the assortment of formats that have been on 92.1 under the KROI call.)

 

[101.9 La Kalle]

Any word as to whether the KROI call will be changed? (Standard disclaimer that calls are largely irrelevant these days, but SBS might want to distance itself from the assortment of formats that have been on 92.1 under the KROI call.)

I feel like SBS hasn't really cared about call signs since the late 2000s. In Orlando, they didn't care to change the WPYO callsign after purchasing it, they haven't changed the KXOL callsign in Los Angeles despite the Spanish A/C “Sol” format it was meant for ended almost 20 years ago, WSKQ hasn't changed it's callsign despite dropping the Super KQ 97.9 branding in 1992 (but that probably has it's own reasons because the callsign comes from SBS' first station), WRXD in Puerto Rico hasn't been changed even though the Spanish News “Red” format it was meant for ended in 2010, and I could go on. The only reason they would change the callsign is if it wasn't included in the purchase of station.

 

[Identnut]

I feel like SBS hasn't really cared about call signs since the late 2000s. In Orlando, they didn't care to change the WPYO callsign after purchasing it, they haven't changed the KXOL callsign in Los Angeles despite the Spanish A/C “Sol” format it was meant for ended almost 20 years ago, WSKQ hasn't changed it's callsign despite dropping the Super KQ 97.9 branding in 1992 (but that probably has it's own reasons because the callsign comes from SBS' first station), WRXD in Puerto Rico hasn't been changed even though the Spanish News “Red” format it was meant for ended in 2010, and I could go on. The only reason they would change the callsign is if it wasn't included in the purchase of station.

WIOB in Mayagüez hasn't changed despite them not owning WIOA and WIOB anymore! And WCTA is available (they had it on the present WEGM when it rebroadcast WZNT's programming).

 

[Mediafrog+]

The only reason they would change the callsign is if it wasn't included in the purchase of station.

The right of SBS to the KROI call was included in the APA with RO/SST.

Lance Venta had hinted in a post a while back that the station was likely to change the call, but anyone’s guess at this point.

I think the last time a call was excluded in an APA here was with the sale of KUHA, which then changed ro KXNG, now KHVU. Same thing for the earlier KTRU sale.

 

[radioislife2020]

They most likely try a LATINO MIX format where they play all lots of new music, Peso Pluma, Fuerza Regida, Prince Royce, ect ect almost like WILD 104 in the Valley.

not a chance

 

[radioislife2020]

the countdown begins. Sbs seems to be doing things right and putting all ducks in a row to come in with a bang. I hear some popular talents at Estrella are looking for a way to jump the ship. I would say the same about Univision but I'm not sure they even have a staff of 10 in the on-air dept. the last meeting I was in i counted 8 including a board op that voice tracks.

 

[Mediafrog+]

They most likely try a LATINO MIX format where they play all lots of new music, Peso Pluma, Fuerza Regida, Prince Royce, ect ect almost like WILD 104 in the Valley.

not a chance

Maybe not on 92.1, but the door might open for someone else to try once SBS launches its own new format. A jukebox for 97.5 that keeps costs down while Gow figures out what to do with the station?