KOMO files Option to purchase 97.7 Mhz for 11 million

[FMSteve]

I have it on very good authority that Fisher Broadcasting has just filed an option with South Sound Broadcasting (KFMY) to purchase 97.7 for 11 million dollars!

A little bird told me to look at the FCC website for confirmation. 

[TakeItFromMe]

11 MILLION   That is pretty cheap for a Seattle FM and I hear that signal everywhere.  That was a price like the horse that won the Kentucky Derby a STEAL   So why didn't KIRO buy that FM and do KIRO AM/FM on it and keep KBSG   Entercom could have put a Classic Country on it and KMPS would have been a horse without shoes sandwiched between WOLF and 97.7 Classic Country   Hindsight is 20/20 but if ya operate that way my dad said "you are always looking backward." 

[Jackson Dell Weaver]

First of all guys...only a change of control is filed with the FCC.  An option is considered a contractual transaction - over which the FCC has no jurisdiction.  Only when there is a change of control.  So I'm not sure what the little birdie misunderstood...but the FCC is not involved until there is an application for sale.  It is possible the LMA includes a purchase option price, but that's not the Commissions business.

Secondly...how does an AM/FM for $11.5M in PDX make $11M a good deal here in Seattle?  It's not a full city-grade signal and there is no cash flow to speak of.  Assuming KOMO could add a share point to the AM ratings with 97.7 - that might translate into $1.3-1.8M in new revenue (most of it bottom line cash flow).  A real multiple of 4-6X and a price of $4-6M might make sense.

Just my thoughts...

[HowardMBurgers]

I agree with Jackson, this is a non-issue. 

Nobody does an LMA deal without some form of asset purchase option in the agreement.  The commission usually never gets involved in LMA's unless it appears that the deal is an attempt to violate ownership caps, which wouldn't be the case for Fisher anyway as this station not only isn't a full-market station but even if it was, Fisher would still be under their limit.

[FMSteve]

Ok, ok alright already!! Here's the option signed by Greg and Joe:

http://fjallfoss.fcc.gov/prod/cdbs/forms/prod/getattachment_exh.cgi?exhibit_id=766703&formid=301&q_num=5030

[gr229]

Yea I notice that about a week ago...So is it the 60db contour or the 70db?
When you do a F.C.C. query it seems as though KOMO has been in co hoots with them since 1983?
From Oakville 3.4kw(?) to Raymond @ 64kw?
I thought KOMO was Seattle based not Delaware?
As someone mentioned in another thread it's a buyer's market...11 million c1 right?
I bet their tower will get closer to Seattle too
Now I'm confused!.. But really.. who cares? it's their money.

[swhyde1980]

I bet their tower will get closer to Seattle too

97.7's tower is already as close as it's going to get to Seattle.  KOMO-FM is already up on South Mountain near Shelton/Olympia, and at the maximum power they can put out at that site.  They have to protect CBUF in Vancouver, BC, also on the same frequency...as well as KNRQ on 97.9 in Portland, OR.  They got some decent coverage though, except for any hills that block the line-of-sight with South Mountain (like down in the Auburn/Kent/Tukwila valley).  I guess they are filling some gaps that AM 1000 wasn't able to get during the daytime, down in Grays Harbor County and parts of Pacific County.

[semoochie]

Where is the reference to an $11.5 million deal in Portland?  Was a post deleted?

[notalent]

I assume it was a reference to the sale of Rose City Radio.

[gr229]

I can't seem to post a link to the thread

here's a quote from it:
Jackson Dell Weaver..quotes

$40 to $60 million for 104.5?  Gimme some of that toke..!  If Portland AM/FM is sold to Larry Wilson at $11M...and this station is clean with no operation - It might be worth $5MM to Fisher or even Clear Channel or Christa..but hardly $40M.  There is no liquidity out there...so unless you are sitting on a barrel of cash, there is no way to finance this station.  And the guys with cash are paying bottom dollar.

Radio-info Seattle board KWDB AM SOLD thread...pg2 for now