Ira Littman is building a three-station superduopoly that is low on existing value but high on potential. He will take over a failed AM station in the Reno market and combine with two AM stations still on the drawing board as CPs. The seller is practically giving the station to Littman not to make a profit but to stop the bleeding.
The station has not been formally appraised, it says in a court document, which continues, “However, Petitioner has consulted with several radio station experts who have attested that the station, due to the collapse of the radio media market now has essentially no sale value at all. Regrettably, the station has service liabilities in excess of $100,000 – dating back over a decade. Moreover, the station has a substantial recurring liability in the form of an annual lease payment to the United States Forest Service of $8,000. The radio station brings in no revenue.”
The decision was handed down by the Superior Court of California for the County of Los Angeles, which agreed that under the circumstances, selling the station to Littman is the best option.
The cost to Littman for KXTO-AM will be $10K, and he will make an overdue lease payment to the $8K US Forest Service that was due in January, and will pick up any future liabilities. KXTO-AM is licensed to First Broadcasting of Nevada Inc., and is being sold by the Conservatorship of Stanley Klein, with Daniel Stubbs serving as conservator.
When everything is up and running, here’s what Littman will have in Reno:
* KXTO, a Class D licensed to Reno on 1550 kHz, with 2.5 kW-D @ 94 W-N, ND.
* A Class B licensed to Reno on 550 kHz, with 1 kW-D, 250 W-N, DAN.
* A Class B licensed to Sparks on 1060 kHz, with 15 kW-D, 370 W-N, DA3.
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