We saw in another deal that Dean Sorenson was planning on selling a small armada of Iowa radio stations to Community First Broadcasting. Now we know the details of that deal.
The earlier deal was for KKIA-FM Ida Grove and KUYY-FM Emmetsburg IA, coming from Jim Dandy Broadcasting, also owned by Sorenson.
The stations include KSOU AM-FM Sioux Center IA and KIHK-FM Rock Valley IA, which form a cluster; KUQQ-FM Milford IA and KUOO-FM Spirit Lake IA, which form a three-FM superduopoly cluster with KUYY-FM; and KAYL AM-FM, which form a cluster with KKIA-FM.
Both deals are completely covered via promissory note. This cluster transaction even contains the phrase, “Seller waives the requirement for an earnest money deposit.” This is no doubt a tribute to the fact that seller Sorenson is also among the buyers. He’ll have 30% of the surviving company, as will Duane D. Butt. Neil Lipetzky will hold the remaining 40%. The buyer CFB is listed on the application as a subsidiary of Dakota Broadcasting LLC.
This deal goes into the books for $7,941,300. The earlier deal was for $2,358,700, resulting in a grand total of $10.3M.
An LMA for these stations began 1/1/10.
RBR-TVBR note: Now available RBR-TVBR’s ‘2010’ new guide to help chart a course through the treacherous waters of buying, owning and selling radio or television stations.
Click to purchase: “Profitably Buying and Selling Radio Stations,” or 1-800-288-4677, ext. 5022 for $49.95, paperback, $39.95, e-book.