John M. Pelkey, Garvey Schubert Barer
The period between execution of a purchase agreement for a station and the closing might be viewed as a broadcaster’s vision of purgatory. The seller must continue to operate the station in such a way that the station’s revenues do not experience a calamitous drop, which could provide the buyer with an excuse to terminate the purchase agreement. At the same time, the seller does not want to deprive itself of business opportunities that may arise as the parties prepare for the closing. After all, the seller must position itself so that, if the deal does not close, it will still have a functioning, viable station that it can profitably operate.