On one end, Educational Media Foundation will send KXPC-FM Lebanon OR to Cumulus, and on the other, Cumulus will send KRUZ-FM Santa Barbara CA to EMF.
The transaction is couched as a straight like-kind exchange, but we know the value with a great deal of precision, because Cumulus has an out on its acquisition end, and if that happens, EMF will pay $1.25M for KRUZ, a value which we can therefore apply to KXPC as well.
Beyond moving from one owner to another, both stations intend to move, literally.
KXPC is licensed to Lebanon OR, placing its contour NE of Eugene. A CP has been applied for that will degrade it from Class C on 103.7 MHz to Class C0 on the same frequency, but with a new city of license. Once in Harrisburg, its contour will essentially blanket the market. If certain approvals are not procured, as mentioned, Cumulus may back out of the deal.
The mega-group has a number of other stations in and around the market, including KSCR-AM, KUGN-AM, KZEL-FM, KNRQ-FM, KUJZ-FM & KEHK-FM.
The station going to EMF, KRUZ-FM is licensed to Santa Barbara and has a CP to move to Goleta. According to the contract, EMF intends to apply to move the station to Oakview CA, which would take it one market closer to Los Angeles – that would put it in Oxnard-Ventura.
EMF will acquire the station whether or not its application is granted. However, it’s not getting everything associated with the station – the rights to the call letters will remain with Cumulus.