KXRV-FM The River is getting a new owner – non-profit World Radio Link Inc. intends to sell the Soft Hits station to Larry J. Schmidt’s Radio Bismarck Mandan LLC. In a trading era in which commercial band stations have been going non-profit, this deal swims against the current.
The station is a Class C1 on 107.5 MHz with 100 kW at 778’ HAAT. It is licensed to Cannon Ball ND, and its signal, based to the south of Bismarck, has no problem whatsoever covering the market.
The price is listed at $625K, but in this deal, it is a moving target. Schmidt can lower it by making additional deposits or by exercising his option to turn an LMA of the station into an acquisition by certain benchmark dates.
The contract calls for a $10K deposit at the contract signing, $5K 11/30/11, $10K 12/31/11, $5K 1/31/12 and $20K 4/30/12. Adding optional payments can bring the price down to $600K. The contract provides for an optional $50K payment 7/31/12.
If the purchase option is exercised by 9/30/12 and the deal closes by 12/31/12, the price can be reduced to $575K.
Further, if the buyer decides to exercise the option before 2011 is over, it can bring the price down even more. If it’s exercised by 12/31/11 the price drops to $550K; if by 10/31/11 to $525K; and if by 9/30/11 to $500K.
Whatever the eventual price turns out to be, and whatever the amount deposited turns out to be, the remainder will be paid in cash at closing.