Seller Northern Star Broadcasting will stay in the radio business in the upper reaches of the main portion of Michigan, but most of its holdings on the Upper Peninsula are being sold to Sovereign Communications, which already has a trio there in Sault St. Marie.
The price is $3.425M cash, with $100K remaining in a holdback escrow account while final adjustments to the price are determined. Patrick Communications has been retained to determine how the price should be allocated.
The deal includes 11 stations in three unrated markets.
In Sault Ste. Marie MI, where Sovereign already owns WSOO-AM/WSUE-FM along with WNBY AM-FM Newberry MI, it will be adding WKNW-AM/WYSS-FM Sault Ste. Marie and WMDK-FM in Pickford MI. The stations form a daisy-chain superduopoly cluster forming three distinct markets based on the overlapping contour definition.
Sovereign will get an existing superduopoly in what it calls the Marquette MI market, including WDMJ-AM/WUPK-FM, both licensed to that community, WIAN-AM/WJPD-FM Ishpeming MI and WNGE-FM Negaunee MI.
Finally, in what Sovereign calls the Iron Mountain market, it will get locally-licensed WMIQ-AM/WMIK-FM and WZNL-FM Norway MI, an existing duopoly.
Northern Star is headed by David Simmons. Sovereign is headed by William C. Gleich and Tim Sabean.
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.
