Townsquare buys NNB stations in Yakima and Tri Cities

[Steenman]

Okay, it's not Seattle, but it's right next door.

"We are pleased to let you know that Townsquare Media and New Northwest Broadcasting have signed definitive documentation related to Townsquare’s purchase of NNB’s stations in Tri Cities and Yakima. Today applications were filed with the FCC for approval of the purchase and we hope to close the transaction in the first half of 2011.

When the transaction is closed, certain of the NNB’s current stations will become part of Townsquare Media and the remainder of NNB’s stations will be put into a divestiture trust. Similarly, certain of Townsquare Media’s current stations will be retained by Townsquare Media and the remainder of Townsquare Media’s stations will be put into the same divestiture trust. Because of FCC limitations, Townsquare Media is permitted to retain six radio stations in each market. The stations that are placed into the trust will be overseen by a trustee and sold to one or more third parties."Below is a table summarizing which stations will remain with Townsquare Media and which will be delivered into the divestiture trust, after giving effect to planned signal swaps. The brands and formats currently associated with respective call letters will not change.

The employees of both Townsquare Media and NNB will be split between Townsquare Media and the trust. Decisions about which employees will be Townsquare Media employees and which employees will be trust employees will be made after careful evaluation in the time between now and closing.

For Townsquare Media this represents an opportunity to strengthen our ability to engage listeners and produce results for clients. For NNB this represents the culmination of the receivership process which began in the spring. And for the future employees of the divestiture trust, after a transition period while the divestiture trust arranges a sale of the trust’s stations, this represents an opportunity for a fresh start with a new ownership group.

For all involved, the best thing that you can do for yourself and for the transaction is to continue to excel at performing your professional responsibilities, remain focused on our listeners, our clients and our business, and not get distracted by the transaction.

When we are in a position to communicate more detail about the transition we will do so. Please direct all of your questions, or questions from clients or other media, to your respective market manager.

Sincerely,

Steven Price

Chairman & Chief Executive Officer

Townsquare Media, LLC

 

[Steenman]

Here's some additional information

Tri Cities,
KORD FM, KXRX FM and KFLD AM are retained and all unchanged.
KEYW FM moves from 98.3 to 106.5 (12,500 watts to 100,000 watts)
KUJ FM is added at it's current 99.1. (#1 12+ and most demos up to age 49)
KALE AM is added at 1340 (moving sports programming and call letters from 960 AM)
we give up KOLW FM 97.5

Yakima
KATS FM and KIT AM are retained and unchanged
KDBL FM, moves to 107.3 (17,000 watts to 100,000 watts)
KXDD FM, added at it 104.1 (#1 25-54 and more)
KRSE FM, added at 105.7 (#5 25-54, #1 45-49)
KJOX AM, added at 1460
We give up KFFM (the old 107.3), KQMY FM and KUTI AM

 

[Jay Peninger]

Here's some additional information

Tri Cities,
KORD FM, KXRX FM and KFLD AM are retained and all unchanged.
KEYW FM moves from 98.3 to 106.5 (12,500 watts to 100,000 watts)
KUJ FM is added at it's current 99.1. (#1 12+ and most demos up to age 49)
KALE AM is added at 1340 (moving sports programming and call letters from 960 AM)
we give up KOLW FM 97.5

Yakima
KATS FM and KIT AM are retained and unchanged
KDBL FM, moves to 107.3 (17,000 watts to 100,000 watts)
KXDD FM, added at it 104.1 (#1 25-54 and more)
KRSE FM, added at 105.7 (#5 25-54, #1 45-49)
KJOX AM, added at 1460
We give up KFFM (the old 107.3), KQMY FM and KUTI AM

Who is listening to all those stations over there? Did they install FM chips in the Taters?

 

[searadiofreak]

Actually, the Tri-Cities is the fastest growing area in Washington. This is a great investment area for both real estate and media.

Townsquare is, to the best of my knowledge, is Gapwest, with a new name, and a dumping of some unprofitable stations. Earlier, they purchased many smaller market Clear Channel stations. The end results are yet to be determined, but cost-cutting would seem to be in the gameplan.

 

[tbonetedh]

Actually, the Tri-Cities is the fastest growing area in Washington. This is a great investment area for both real estate and media.

Townsquare is, to the best of my knowledge, is Gapwest, with a new name, and a dumping of some unprofitable stations. Earlier, they purchased many smaller market Clear Channel stations. The end results are yet to be determined, but cost-cutting would seem to be in the gameplan.

This additional move guarantees market economic inequity, disparity and stratification. Townsquare will keep the gold, and will assign the "coal" to the transition team. As an advertiser I did not appreciate it when years ago Yakima want from several radio companies (which I could sometimes work against each other) to three, and now that process continues to devolve.

I wonder, will the FCC consider the fact that some of these stations have very low listenership? KUTI - good grief!!! Will they take actual verified Arbitron listenership into account or just the number of slots on the dial when computing the AntiTrust implications of this deal.

Ya, i know times are tough and business is business, but lets keep in mind the advertisers as well when making these decisions please.

 

[Dennito]

"Who is listening to all those stations over there? Did they install FM chips in the Taters?"

Significantly more listeners than your little onlline "radio station." Put away your Western Washington snobbery and 1980s views of Eastern Washington and you might find there is culture, intelligence, opportunity and a nice quality of life over there.

 

[e-dawg]

As for the remaining stations after the merger can they go to these broadcasters?


Tri-Cities Radio Market

Cherry Creek Radio
KONA 610 AM News/Talk
KONA 105.3 FM Adult Contemporary
KZHR 92.5 FM Regional Mexican
KRKG 93.7 FM Active Rock
KUJJ 101.9 FM Smooth Jazz/NAC

Bustos Media
KMMG 96.7 FM Spanish Contemporary
KZTB 97.9 FM Regional Mexican
KDYM 1230 AM Regional Mexican


Yakima Radio Market

Bustos Media
KZTA 96.9 FM Regional Mexican
KDYK 1020 AM Regional Mexican

Cherry Creek Media?

 

[Jay Peninger]

"Who is listening to all those stations over there? Did they install FM chips in the Taters?"

Significantly more listeners than your little onlline "radio station." Put away your Western Washington snobbery and 1980s views of Eastern Washington and you might find there is culture, intelligence, opportunity and a nice quality of life over there.

Don't get your panties in a wad Dennito, heaven forbid somebody tosses out a little levity... I own a home in beautiful Eastern Washington and enjoy golfing there during the summer. Fall and winter I bird hunt there, I know much more about that side of the mountains than you might assume...

And talk about snobbery what did our little insignificant online radio station ever do to you?

Mom Dennito's picking on me, make him stop ;D

 

[chokesman-review]

I must say this is an interesting one. In looking at the numbers KEGX as a classic rocker garnered a 4.7 in the last book to 'The Key' at 98.3's 6.8.

As said in the initial post they are deciding which properties to keep. Factor in also that they want the big sticks in town so they are consolidating the best performing formats with those sticks.

Its an end of an era. I recall when The Eagle 106.5 signed on in 1993. The Tri-Cities only had a CHR then at 94.9. The Eagle was the beginning of the death of OK95. With KEGX and a couple years later KXRX taking away the rock listners. OK95 was gone. Interesting though, current CHR KUJ Power 99.1 is right in the thick of the ratings race.

I wonder if 98.3 will continue to carry the Eagle branding and format? Perhaps they'll just leave it to Cherry Creek's 93.7 to carry the rock banner and Townsquare will just focus on KXRX.

Interesting times down here.

KEYW FM moves from 98.3 to 106.5 (12,500 watts to 100,000 watts)

 

[radioguy123]

How can one company and their designated "trust" own all but two signals in Yakima? By switching around formats on their signals and on the "trust" signals doesn't Townsquare really control all but a couple stations in the markets, especially if they can tell the "trust" what to do. Maybe the FCC doesn't really care about this anymore. Feel bad for the people working in those markets. Wouldn't want to be left with the "coal" stations in some transition trust. How is this good for advertisers or the market?
someone explain.

 

[IndigoCoyote]

Yup, you're right RadioGuy. To call these things a "trust" belittles the meaning of the word, you know?

 

[e-dawg]

I don't understand is why would Townsquare Media purchase Yakima and Tri-Cities stations if they are maxed out?

 

[Bongwater]

If you think it's competition-less in radio down there, let me remind you Saga Communications owns every commercial radio outlet licensed to Bellingham.

Which leaves religious KWPZ and KARI and Punjabi-for-Vancouver formatted KRPI and KVRI as your only other local alternatives for your radio advertising dollars.

THAT is wrong......

 

[TVradioguru]

Which leaves religious KWPZ and KARI and Punjabi-for-Vancouver formatted KRPI and KVRI as your only other local alternatives for your radio advertising dollars.

THAT is wrong......

Why is it wrong...Bong?

I'd be willing to bet that if you made a reasonable offer to Saga or any one of the station owners in Bellingham or the surrounding areas, you too could own a radio station. To assume that somehow big evil corporate owners have the majority stable of radio properties and thus, locking some individual out, would be completely without merit. Could it be that because Saga is good at running radio properties is why they happen to operate the majority of them?

A small business person may own the majority of hardware stores in a region because they know the hardware retail business, yet it would be unwise for a local successful auto mechanic to go up against them with a hardware store. Nothing preventing the mechanic from trying, but the mechanic probably would fail in the end.

 

[LITTLEBOYBLUE]

Hardware is completely different than publicly-owned spectrum which has ability to influence people and force set rate for advertisers all under control of only one licensee. I think that's what he's highlighting is "wrong". Never understood how B.Ham flew under radar for the limits of control -- unless rules changed along the way. Used to be no one could go north of 49% audience share and owners would argue about how they always had less than 50% -- even with only two owners in a market each claiming 49%. Two percent of overall market abducted by aliens when measurements were taken, apparently.

 

[bossbill]

Weren't the Saga property transactions done prior to the crazy stupid "Arbitron" method of defining markets?

 

[TVradioguru]

Hardware is completely different than publicly-owned spectrum which has ability to influence people and force set rate for advertisers all under control of only one licensee.

Business is business, whether hardware or radio. It just happens that the spectrum is controlled and charges for use of the spectrum by the US Government. The reality is you nor I "own" the airwaves, no more than you own a section of I-405 or your local post office. Broadcasters make the investment in equipment and staff to utilize the airwaves. Without the investment, airwaves are empty air.

It's easy for Bong or you to act as if a group owner is committing some form of illegal monopoly by operating several stations in a small or medium market, having never owned or operated one or more stations yourself. The fact remains that if you or your buddy Bong had more ball$ and less keyboard, you could pool your resources and pick up a station, going up against any competing station or group. There is nothing stopping you from under-cutting the rates of Saga. I guess it's just cheaper and easier to complain about the perceived injustice on some discussion board.

 

[LITTLEBOYBLUE]

[I guess it's just cheaper and easier to complain about the perceived injustice on some discussion board.

...or to spend all the free time pissing and moaning about those who do.
C'mon, Kelly ... lighten up! You'll live longer!!

xo

 

[TVradioguru]

The name isn't Kelly, and I live quite well Mr.Blue, but thanks for the concern.

As with Bong, you seem to be very quick to demonize group or corporate owners, having no ownership interest in radio or broadcasting youself. Then when someone who has experience as an owner corrects you on a subject, the typical response is "lighten up". I suggest you consider taking your own advice for once.

 

[LITTLEBOYBLUE]

I'm not clear how anyone would know whether I have ownership experience or not.... I invest in a bunch of stuff -- not sure who else would know what I have or have not invested in? But I appreciate getting the benefit of doubt from you that I have my head up my ass!! Whatever. I'm here to trade opinions and observations with folks .. not prove my own sense of worth based on whatever yardstick each reader chooses to use.

Am not demonizing corporate owners in this thread -- am saying when ONE owner has all the marbes in the game it's not going to be a good thing for anyone. My demonizing corporations in the past has been because their approach and mindset is counter-intuitive to what makes good product -- but if the ownership wants to go about it the hard way -- more power to them. When their company culture is more important than their strategy -- they have bigger problems than any of us can ever try to solve. And that's not just my rantings --- read MOST of the industry blogs and you'll see many of these outfits are "consistenly clueless" as their ongoing operating foundation. It's the guys in the middle/market tiers who are stuck trying to make the performance happen when their hands are tied by those who are far more focused on bonus structure than anything else.

On the bright side, pwners like BillW do great radio AND great ownership -- but it's because they were raised on the legacy that it all starts with a focus on the product not JUST the shareholders (and the best ownership cases don't HAVE shareholders who interfere with good strategy). Owners like CBS (shareholders = yes) and Clear Channel (shareholders = not anymore), can't shake their culture to save their life. In the end "one of these things is not like the other" -- good owners get it and do well -- those who put internal compliance ahead of commense sense are painting their situation with their rules and their brush -- I'm not doing it for them.