I have some experience with an in state "network" in Georgia, the draw back is unless you have separate automation systems for each station playing commercials, a lot of the commercials are of no interest to the average listener. On the other-side car dealers love it. Local news can be a challenge on a multiple station set up. Something of major importance or interest in one county, is of no interest two counties over. Even weather forecasts have to be generalized. It can be sunny at the main studios and snowing or a severe thunderstorm 30 miles away.
Not being familiar with this operation all I can say is either Summit Media either has generated a lot of cash to come up with the $1,250,000 at closing, or they have a track record that somebody will loan them the funds. Using the old 10 times positive cash flow formula*: WVWV has a positive cash flow of 10+grand a month, not bad for a City of license population of 3,572 and a county of 26,229 according to the 2010 census.
* That formula was used before the credit melt down of 2007-2008. I do not think there a bankers lining up to finance broadcasting acquisitions. So Summit must be doing OK to pull this deal off.
