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If a broadcaster owns multiple stations in a market, it usually will dispose of all of those stations when it comes time to sell. That is not always the case, however. On occasion, one of the stations will be an underperforming station that the broadcaster wishes to jettison. In other cases, the broadcaster may be over the ownership cap in that market and wishes to dispose of the station that places the broadcaster over the limit. In still other cases, the broadcaster may have an opportunity to “trade up” and to obtain a higher powered station only if it is able to sell a lower powered station.

Although it might be true that a rose is a rose is a rose, it would be wrong to assume that a purchase agreement is a purchase agreement is a purchase agreement. Newcomers to the broadcast industry are sometimes surprised at some of the differences between a broadcast transaction and the sale of a business, such as the local hardware store, that is not so fraught with regulatory requirements.

The specter that hovers over any broadcast transaction is the possibility that someone could file a petition asking the FCC to deny the application seeking the Commission’s consent to the transaction. After what may have been months of negotiation, the swapping of numerous drafts and meticulous due diligence, the transaction may be upended by such a petition to deny.

Drafting a purchase agreement can be a complex affair. Despite the best intentions of the parties, the negotiation and drafting process nearly always

Citizens for Equity in Taxation has filed a petition to deny the sale of radio stations from Cox to SummitMedia and Connoisseur Media on grounds that ultimately its members, and indeed, all citizens of the US will have to pay more taxes to make up for taxes potentially avoided by the dealing parties.

John M. Pelkey, Garvey Schubert Barer Part 1 of this two-part series (RBR/TVBR, April 5, 2013) dealt with contract provisions that protect a party from...

By John M. Pelkey, Garvey Schubert Barer Few parties enter into an agreement for the sale of a broadcast facility in anything other than the...

John M. Pelkey, Garvey Schubert Barer Although it has always been the case that an astute business person would know the background of the person...

Although a prospective buyer usually is focused on owning a station, purchasing a station may not be a realistic option for that buyer.  It...

By John M. Pelkey, Garvey Schubert Barer Buying a broadcast station from a receiver or a trustee in bankruptcy is a little like trying to...

By John M. Pelkey, Garvey Schubert Barer As the date for the opening of the LPFM filing window approaches, the time may soon be here...

By John M. Pelkey, Garvey Schubert Barer With the FCC on the cusp of accepting applications for new LPFM stations, even less spectrum will be...

By John M. Pelkey, Garvey Schubert Barer As it contemplates purchasing a station, a prospective buyer must pay close attention to regulatory matters. A station...

By John M. Pelkey, Garvey Schubert Barer In “Money-Saving Tips on Leasing Your Tower” in the August 2, 2012 RBR/TVBR, Erwin Krasnow and I discussed...

By John M. Pelkey, Garvey Schubert Barer Regardless of whether it is selling all of its stations or is just spinning off a tower to...