This time the DMA is San Francisco-Oakland-San Jose, where OTA Broadcasting is expanding its holdings in the television space with the acquisition of KAXT-CD. Once again the ROI for the seller is impressive.
The seller is KAXT LLC. Warren L. Trumbly signed off on the sale.
The buyer, OTA Broadcasting, is one of the relatively new groups in the television business, and this will be its second station in the San Francisco area – it already owns full power Total Living Network affiliate KTLN-TV, licensed to Novato CA
The FCC lists KAXT’s community of license as San Francisco-San Jose. It is a resident of Channel 42, and uses virtual Channel 1.
The price for the station will be $10.1M cash.
KAXT acquired the station from Broadland Properties pursuant to a contract dated 8/19/09. The price? There was no price, strictly speaking. KAXT took over the station in return for forgiveness of debt, the value of which was placed at $850K. So ROI is looking pretty good — multiplied almost 12 times to $9.25M.