As RBR+TVBR first reported on December 18, Lotus Communications, the family-owned radio broadcasting company led by Howard Kalmenson and his son, Jim, is reentering the San Diego market after 29 years. It is doing so by purchasing an FM once owned by Midwest Television and, later, by TEGNA.
It is now known how much (or, in this case, how little), Lotus is paying Local Media San Diego for the station.
With Norm McKee signing off on the agreement on behalf of LMSD, KFBG-FM 100.7 in San Diego is being sold to Lotus for $3.5 million.
With Melissa G. Repp of Repp Law Firm representing the seller, paperwork filed with the FCC for its regulatory approval tells the story that broker Kalil & Co. withheld by the seller’s request from its sale announcement distributed last week.
A $245,000 escrow deposit has been made by Lotus and is being held by Tucson-based Kalil & Co.
Interestingly, the terms of the deal allow Lotus to bring back the KFMB-FM call letters that were in place until April 6, 2020.
Once Lotus assumes control of KFBG, no programming adjustments are expected, Jim Kalmenson told RBR+TVBR‘s Maui Bureau last week while visiting the Valley Isle. The station is presently focused on Adult Contemporary-driven Classic Hits as “100.7 BIG FM.” While KFBG’s Nielsen Audio 6+ ratings are strong, Kalmenson said the station’s billing lagged its audience as measured by Nielsen.
Once KFBG is added to Lotus’ property list, it will join stations in Bakersfield, Fresno, Los Angeles and Sacramento, Calif.; Las Vegas and Reno, Nev.; Tucson, Ariz.; Seattle, Wash.; and Boise, Idaho.
For some market observers, a $3.5 million valuation for a Class B FM blanketing all of San Diego County’s western population areas might seem like a steal of a deal. Yet, this falls in line with valuation estimates associated with LMSD’s purchase of the former KFMB-FM and its AM sibling, now iHeartMedia’s KGB-AM 760. Before that, low valuations were placed on the AM and FM when TEGNA acquired the radio duo as part of its purchase of CBS affiliate KFMB-8 in San Diego from Midwest Television.
Midwest Television had owned KFMB-AM & FM and KFMB-TV since 1964. KFMB-FM’s first rise to prominence came in mid-1975, when “B100” signed on the air to challenge AM radio stations serving San Diego. It was a success, with air personalities including Shotgun Tom Kelly and noted screenwriter Ken Levine (as “Beaver Cleaver”) making B100 a No. 1 FM in 1977 — a difficult feat as FM converters were still common for automobiles.
By May 1994, B100’s fortunes had faded. After a period of stunting, Midwest Television in June 1994 gave birth to “Star 100.7.” Across the late 1990s, this incarnation of KFMB-FM under the programming leadership of Tracy Johnson would enjoy a resurgence in popularity. Dave Smiley and Greg Simms were among the air personalities, ahead of “Jeff & Jer” returning to the frequency in May 1997 for a new tenure at KFMB-FM.
In April 2005, the “Star” had faded, leading management to adopt the “JACK FM” air talent-free presentation. Several other changes came ahead of KFBG becoming “Big” in April 2020.
