Religious radio leader Salem Communications has more AM stations in the Seattle market than it needs, and has a deal to spin one of them off for $3.69M. Oops, that was the 2008 price. Now the buyer is different and the price almost $1M less.
The station is KKMO-AM Tacoma WA. Once on its way to Tron Do’s Intelli LLC in a deal filed with the FCC 4/30/08, it is now headed for Sea-Mar Community Health Center, headed by Greg Ma and Rogelio Riojas, among others.
The new price is shaves just slightly less than a million bucks off the old one, bringing it down $990K to $2.7M, a reduction in price of more than 25%. It’ll be paid in cash with $135K plunked down in advance into an escrow account. Salem’s license company holding KKMO is Inspiration Media Inc.
Salem retains four stations in the market, KGNW-AM, KLFE-AM, KKOL-AM and expanded band KNTS-AM.
They buyer can earn $700K from Salem in the event that Salem decides to put a “secular Spanish or Mexican music” format on any of its retained stations within the next five years. But the buyer concurs that Christian music is fine, as is Christian teaching and talk programming, even if it is in Spanish. However, if Sea-Mar elects to either abandon the Regional Mexican format or sells the station, Salem is freed to do whatever it wants.
RBR-TVBR note: If you read this article, chances are you have more than a casual interest in the buying and selling of media properties. Much of what goes into a deal goes into the contract, and knowing what kinds of things should go into the contract can help you make a better deal. RBR-TVBR has just the book for you: a guide to deal-craft that will pay for itself.
Click to purchase: “Profitably Buying and Selling Radio Stations,” or 1-800-288-4677, ext. 5022 for $49.95, paperback, $39.95, e-book.