A new entrant into the radio business is picking up two FM stations in the unrated Taos NM area, from two separate buyers in two separate stock transactions. In one of the deals, the foursome making up buyer ASKK Media is also picking up extensive lessons on running a radio operation.
ASKK, a partnership made up of Kate Black, Shannon Black, Katherine Speirs and Aidan Bain, are getting West Waves Inc. and its KLNN-FM Questa NM for $375K. Three sellers are splitting the proceeds – David W. Rahn and John Bradley each get $142K for stock holdings amounting to 40% each, and Stuart Martin is getting $71K for 20%. That adds up to $355K cash. ASKK will also take on as much as $20K in existing liabilities; meanwhile the sellers will use proceeds to clear other debt.
The more interesting contract is for KTAO-FM Taos NM. That station is going for $675K, with $545K being paid via four separate promissory notes and another $130K coming in the form of liability assumption. The seller will also retire $100K in liabilities. With so much money tied to notes, it is also a condition of the contract that the buyers take out $1.2M in life insurance with seller Bradley C. Hockmeyer named as beneficiary.
Hockmeyer will also train the buyers in the operation of a radio station during the period when the deal is pending with particular emphasis on the last 90 days. He will also remain on staff for at least two weeks after closing to continue teaching the buyers, and will make himself available for two weeks after exiting the station for further consultation at a compensation rate of $25/hour.
Additionally, at buyer expense, he will accompany them to a New Mexico Broadcasters Association awards function in June and the NAB/RAB Radio Show in Washington this Fall “to facilitate introductions of Purchasers to the industry.”
RBR-TVBR note: Now available RBR-TVBR’s ‘2010’ new guide to help chart a course through the treacherous waters of buying, owning and selling radio or television stations.
Click to purchase: “Profitably Buying and Selling Radio Stations,” or 1-800-288-4677, ext. 5022 for $49.95, paperback, $39.95, e-book.