We knew that Duke Wright’s Midwest Communications was getting an intact four-FM cluster in the Michigan capital market of Lansing-East Lansing. Now we know how much seller Rubber City Radio Group stands to collect.
The deal is going into the books at $4M, with $200K going into escrow with another $3.8M coming in the form of cash at closing, less $100K that will go into a holdback account.
The stations include Active Rock WJXQ-FM, Alternative WVIC-FM, Classic Hits/Talk WQTX-FM and Smooth Jazz WJZL-FM. WQTX also carries local sports programming, according to the deal’s broker, Dick Foreman.
And wait, there’s a bit more. Midwest will be spending an additional $100K in the form of a non-competition agreement with the seller, headed by Thomas Mandel. It specifies that Rubber City may not compete in the Lansing area for a period of five years, nor may it make any overtures to any of the cluster’s employees during that same period without the express written permission of Midwest.
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