The purchase price is $505 million: Bruce Reese, Bonneville CEO tells RBR-TVBR the company is selling its radio stations in Chicago, Washington DC, St. Louis and Cincinnati to Hubbard Broadcasting.
Bonneville will keep its stations in LA, Phoenix, Salt Lake City and Seattle. “We will continue to work with those stations in conjunction with the radio stations and TV station here in Salt Lake City (KSL-TV-NBC), along with the internet presence that we’ve got,” Reese said.
So Bonneville is not exiting the radio business, they will still be there. But Hubbard is expanding its operations with four additional markets.
Ginny (Hubbard) Morris, who will become Chairman of Hubbard Radio, notes that her family has been in radio since 1923 and told RBR-TVBR “now we are in a great position to expand selectively.”
“They are buying a going concern, so there are no changes at the people level. Drew Horowitz, the COO and I, are going to be going with Hubbard, as well our small corporate office here in Salt Lake City. So we will become part of the Hubbard operation as well,” said Reese.
Peter Handy of Star Media Group brokered the sale for Bonneville. Lazard was also a major advisor to the seller.
Hubbard currently has its share of TV stations, but for radio it only owns stations in Minneapolis-Saint Paul: KSTP-1500; KSTP-FM-94.5 and KTMY-FM. It’s only other previous radio ownership was in Albuquerque.
St Louis, Missouri
101.1 WXOS (FM)
106.5 WARH (FM)
97.1 WDRV (FM) / 96.9 WWDV (FM)
100.3 WILV (FM)
101.9 WTMX (FM)
1050 WTOP (AM)
94.9 WREW (FM)
97.3 WYGY (FM)
101.9 WKRQ (FM)
Bonneville International stations retained by market:
Salt Lake City, Utah
100.3 KSFI (FM)
102.7 KSL (FM)
103.5 KRSP (FM)
1160 KSL (AM)
98.7 KPKX (FM)
620 KTAR (AM)
860 KMVP (AM)
Los Angeles, California
100.3 KSWD (FM)
710 KIRO (AM)
770 KTTH (AM)
Hubbard’s TV stations:
St. Paul – Minneapolis KSTP-TV ABC
KSTC-TV 45 Independent
Alexandria, Minnesota KSAX ABC
Redwood Falls, Minnesota KRWF ABC
Albuquerque – Santa Fe KOB-TV NBC
Farmington, New Mexico KOBF NBC
Roswell, New Mexico KOBR NBC
Silver City, New Mexico KOBG-TV NBC
Albany – Schenectady – Troy, NY WNYT NBC
Rochester, New York WHEC-TV NBC
Duluth, MN – Superior, WI WDIO-TV ABC
Hibbing, Minnesota WIRT ABC
Austin – Rochester, MN – Mason City, IA KAAL ABC
RBR-TVBR observation: What’s the multiple? That’s no doubt the question everyone is asking. We’re hearing it is in the neighborhood of eight times broadcast cash flow. That’s a bargain by historical standards, but what the talk has been in the marketplace for over a year. And certainly buyers remain scarce, while the Hubbard family is fortunate to have plenty of access to cash for acquisitions.
RBR-TVBR note: See related analysis and information