George Beasley is buying a pair of Las Vegas FM stations under the umbrella of a new corporation formed for that purpose, and will enter into an LMA with Beasley Broadcast Group, for which he is Chairman/CEO, for the purpose of operating them.
The stations are KOAS-FM and KVGS-FM. Beasley is buying them as GGB Las Vegas, LLC. The seller is Riviera Broadcast Group, LLC and the price is roughly $8.5M. Closure is expected sometime in Q3 2010.
An LMA will kick in between GGB and Riviera pending closing, and BBG will immediately step in to provide sales and management services. BBG will get 40% of anything sold by its own existing sales team, and once the deal closes, will receive 50% of monthly aggregate operating income or $10K, whichever is greater. BBG will also have an option to acquire the stations for the same $8.5M.
105.7 KOAS-FM The Oasis is a rhythmic AC station, and 107.9 KVGS-FM The Alternative plays modern Rock.
They will combine with the three stations BBG already owns and operates in the market, Coyote Country 102.7 KCYE-FM, Classic Hits 96.3 KKLZ-FM, and News-Talk 720 KDWN-AM.
George Beasley stated, “This transaction allows Beasley Broadcast Group to leverage its existing Las Vegas operating and management capabilities to immediately generate new cash flow through a structure that requires no capital commitment. Our existing Las Vegas cluster is benefiting from the focus we placed on identifying the right management leadership, and the 24% increase in revenue generated by our three stations in the market in the 2010 first quarter significantly exceeded the overall market which remains economically challenged.”
Michael Bergner provided brokerage services for GGB.
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