It’s yet another sign of the times transaction. Salem Communications filed to sell KTEK-AM Alvin TX to BusinessRadio back in December of 2007, posting a contract calling for a $7.75M compensation package. Now it’s getting the station back for less than half price.
And when if comes to cash, the new value is almost one tenth what it was.
The new contract specifies compensation of $3.7M. Salem will pay $800K in cash. $1.26M will come under the heading of debt forgiveness, and the remaining $1.64M will be credited to BusinessRadio to use in for form of programming time on “certain stations” owned by Salem.
An LMA began 3/8/10.
The station rejoins a Salem Houston cluster that includes Christian Talk KKHT-FM and News-Talk-Info KNTH-AM.
Salem, headed by long-time execs Stuart W. Epperson and Edward G. Atsinger III, is buying the station under licensee name South Texas Broadcasting Inc.
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Click to purchase: “Profitably Buying and Selling Radio Stations,” or 1-800-288-4677, ext. 5022 for $49.95, paperback, $39.95, e-book.