Riviera Broadcasting, LLC, a venture formed by The Yucaipa Companies and Magic Johnson Enterprises, is buying a trio of FM station in Phoenix AZ. The seller is Atmor Properties. The buyers say that this is their first move, but probably not their last.
Radio veteran Michael Cutchall will serve as CEO of the company, and Jose Rodiles will be on board as COO. The stations are KVIB-FM, KKFR-FM, and KEXX-FM. Terms of the deal were not released. But the company said it is on the lookout for more radio investment opportunities in other markets.
“We are thrilled to have the backing and support of one of the premier investment groups in the country,” said Cutchall. “These stations have a great connection to their listeners and provide advertisers great value. KVIB’s bilingual Spanish-English pop-radio provides advertisers with a broad multiethnic audience. KKFR, offering R&B and Hip-Hop, is top five among 18 to 34-year-olds. Moreover, KEXX is the only alternative music FM station in Phoenix. We are proud of the team that operates these stations and look forward to working with Yucaipa and Magic Johnson Enterprises.”
“We are extremely optimistic about the value-creation potential in radio,” said Earvin “Magic” Johnson, Chairman and CEO of Magic Johnson Enterprises. “Market conditions make this the right time to take advantage of this opportunity, and we are confident we have the best leadership team in place to build out an exceptional broadcast radio group.”
Yucaipa’s Managing Director Ron Burkle added, “We are excited about entering the Phoenix radio market and backing this excellent management team. We believe Riviera Broadcasting will be a great platform to serve the Phoenix market and we will continue to look for additional radio investment opportunities.”