Max Media’s Ara R. Daylan will have a chance to get to know this new trio of Texas FM stations before he becomes their owner. The new semi-entrant into radio ownership is going to LMA the stations with an option to buy.
The possible seller and for-sure landlord will be William H. Brothers’ Tower Investment Trust Inc. According to broker Todd Fowler, the Texas stations represent 60% of Tower’s holdings – it also has FMs in Flagstaff AZ and Greenville-New Bern-Jacksonville NC.
Max – not to be confused with established group Max Media of Virginia — will be getting stations in three separate Texas markets. 96.3 KXXN-FM is licensed to Iowa Park TX and serves Wichita Falls; 105.1 KTTY-FM is licensed to New Boston TX and serves Texarkana; and 98.9 KLOW-FM is licensed to Reno TX and serves unrated Paris TX.
The term on the LMA is two years, and the option can be exercised at any point. The value of the transaction was not revealed.
RBR-TVBR observation: Just in case anybody was wondering, there is no FCC requirement to make public the financial terms of an LMA. However, should Max decide to exercise the option, the purchase price of the stations will have to be part of the application, or as is usually the case, stipulated in the contract submitted to the FCC with the application, and will become a matter of public record.
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.
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