Pending FCC approval, HF Companies, which includes a diverse array of businesses including Viking Plastics and executive search firm DHR Global, is poised to be the new owner of a group of St. Louis radio stations comprised of heritage spoken word KMOX-AM & FM, Adult Contemporary KEZK-FM, Hot Adult Contemporary KYKY “Y98,” Adult R&B WFUN-FM 96.3, Talker KFTK-FM 97.1, and KEZK HD2, branded as Hip-Hop focused “Hot 98.7.”
Late Wednesday, the transaction’s asset purchase agreement was submitted to the FCC for regulatory approval. How much is Hoffman Media Group paying for the properties?
The answer is now known.
Audacy is earning $20 million from the same of the entire six-station cluster.
To offer some perspective, Urban One in April agreed to acquire heritage Dallas-Fort Worth R&B radio stations KKDA “K104” and KRNB from Service Broadcasting Group for $22 million. In June 2023, Cumulus Media earned $10 million from the sale of the former WDRQ-FM in Detroit to Family Life Radio.
As RBR+TVBR first reported on August 29, David Hoffman and his HF Companies — fresh off of National Hockey League approval to purchase the Pittsburgh Penguins — presented an unsolicited offer to Soros Fund Management-controlled Audacy to acquire the St. Louis radio stations.
In an internal memo distributed by Audacy to St. Louis staff, CEO Kelli Turner remarked that the group of broadcast properties were not being marketed to potential buyers. However, Hoffman approached Audacy with an offer it found suitable for consideration and, ultimately, signed an agreement on amenable terms.
“This transaction is a win for both companies as well as for St. Louis listeners and partners,” Turner wrote. “For Audacy, it reflects the strength and value of these outstanding brands as we focus our investments on strategic initiatives. We remain a leader in local audio across the country, and we’re confident the St. Louis group will continue to thrive under Hoffmann’s stewardship.”
Just how did Audacy, formerly known as Entercom, form the St. Louis cluster?
KMOX-AM, KYKY and KEZK are former CBS Radio stations acquired in the Reverse Morris Trust-fueled tax-free merger between Entercom and the CBS unit that ultimately led the company reborn as Audacy into debtor-in-possession status and the founding Field family to relinquish control.
KFTK and WFUN-FM (then KNOU-FM) were purchased from Emmis Communications in 2018 for $18 million.
Audacy acquired what is today KMOX-FM (then WHHL-FM) via an asset exchange with Urban One engineered in November 2020.
