WDAC Radio Company has filed for an extension on its sale of WFKB-FM Boyertown PA to Nassau Broadcasting. The $22M sale was to be the culmination of an LMA that stretches all the way back to September 2005. However, in a new filing with the FCC, WDAC said it had been informed that Nassau was unable to consummate the transaction due to “certain dislocations in the credit markets.” WDAC says the LMA is in effect until 11/30/08, and it’s asking the FCC for a 90-day extension of the transaction application, taking it to 12/22/08, as the principals look for a new way to get the deal done. WDAC said that an extension would not preclude sale to a new buyer should one be located.
RBR/TVBR observation: This sorta makes it official. Wall Street has indeed arrived on Main Street. As financing becomes even scarcer than it is already, prices of stations will inevitably come down, making it a great time to have cash and a hunger for stations. But the number of people in that group figures to be miniscule as well. Deal-making will require more and more creativity, and strategic partnerships, LMAs and other such arrangements will become more common.
