Not much cash will be moving around in this transaction, but plenty of debt. Sanjay Sanghoee is acquiring 36 stations in all from the current owners of Davidson Media Group.
Sanghoee’s SS Broadcasting Holdings will pay $1,000 cash to acquire all of the stock of Davidson Media Group, now owned 50/50 by CapStreet II LP and Citigroup Venture Capital International. More importantly, SS will take on debt totaling $2,076,024 to CapStreet, Citigroup VC and others and they will retain a substantial stake in the form of preferred units.
So, the current owners aren’t really going away. They just won’t have an attributable interest going forward in the eyes of the FCC.