Intelligence Briefs

The Federal Communications Commission—whose transactions and meetings are covered regularly by Radio and Television Business Report and other industry publications

Revolt TV’s entré into music television made a big splash, but P. Diddy – a cultural curator of our generation – must understand how to attract Millennials and keep their attention or risk becoming inconsequential with the likes of Fuse TV and MTV2. Revolt TV’s timing couldn’t be better. We are at the pinnacle of where social media, technology and music intersect. Millennials are excited about “emerging artists” and getting the latest news on their favorite artist or band. They are listening and watching on a range of digital devices. They love to let other people know who they are listening to and have dozens of channels to disseminate that information. This trifecta of activation gives Diddy an amazing starting-point for his channel. But just throwing a channel up on the dial and putting Diddy’s name behind it isn’t enough.

Multiples are a favorite station-trading statistic, but according to veteran broker/broadcaster George Reed, they are often an eye-of-the-beholder stat where different results can be cited for the same exact transaction. In fact, Reed says it is best to have the salt shaker handy before embarking on a discussion of multiples. Here’s his handy guide to sorting everything out:

Broadcast transactions can in some ways conform to the tried-and-true good news, bad news joke format, and then some. For example, the bad news is that time expires between signing an agreement and getting approval for it. The good news is that it allows for the resolution of certain problems. But the bad news is on many occasions, the extra time is needed. Communications transaction expert John Pelkey explains, with a focus on the often slippery aspects of the real estate portion of a deal.

It comes as no surprise to those of us who transact business in the spot television arena that local audience

Many people in the market to sell or buy a broadcast station make use of the expert services of a media broker. Their special knowledge can be extremely beneficial to the client who contracts for their services. Communications transaction expert Erwin Krasnow takes an in-depth look at just what a contract with a broker should contain.

There is a tectonic shift undermining the very foundation of broadcast radio. Multiple metrics make it clear that serious threats imposed on the FM/AM platform by new online competitors are escalating exponentially. For more than 25 years I’ve helped build audiences for some of the radio industry’s most successful brands. But today, as online competitors like Pandora, iTunes Radio and Spotify add fuel to their astonishing rise, it’s questionable whether the strategies broadcasters have chosen can foster healthy growth.

The old cliché is that it’s the waiting that’s hardest, but some waiting periods can be harder than others, such as the time between the FCC grant of a broadcast transaction and the FCC final order. In particular, it can be excruciatingly difficult if something major goes wrong with the station. Broadcast transaction expert John Pelkey guides us through the ins and outs of this difficult question.

The indemnification portion of a broadcast transaction contract may well be a low point in what can be a boring document. However, its ultimate importance cannot be understated if problems come up that require one party or the other to spend more money. Communications transaction expert Erwin Krasnow walks us through the indemnification process. It is must reading for prospective buyers and sellers of broadcast stations.

Your broadcast transaction is well struck – the FCC approves and it’s going, going, going – then it is not gone, for reasons unknown. Although the last thing a party committed to the deal wants is for a trading partner to drop dead, the party may well want “drop dead” to be part of the contract. Communications transaction expert John Pelkey explains.

For decades, broadcasters throughout Oklahoma have taken their responsibility to warn and prepare residents

To a certain extent, the art of buying and selling broadcast stations involves the ability to haggle– but according to transaction expert John Pelkey, there is a time for haggling and a time for compromising, and to a large extent, it pivots on the value of the deal, the amount tied to the haggle, and even the associated amount the attorneys stand to collect. Click through for this essential deal-making advice.

During recent broadcast history, not only has it been difficult to procure financing, it has also often been difficult to repay it. In this installment of Deal Tips, transaction experts John Brooks and Erwin Krasnow stress the importance of candor and honesty during hard times, and explain exactly what this entails. This is a must read for anyone who has ever financed an acquisition.

The licensee of a station brokered to a second party is required to maintain two permanent staffers at all times, a critical piece of evidence demonstrating that there has not been a premature transfer of control. But how should these people while away the hours? Communications law expert John Pelkey has some ideas.