As RBR+TVBR first reported on May 1, Urban One has engineered a deal that will give it two African American-targeted FM radio stations in the Dallas-Fort Worth market from Service Broadcasting, the privately held licensee long associated with Hymen Childs. At the same time, Urban One is agreeing to part ways with an FM in North Texas it already owns, selling it to a Christian broadcast ministry.
Terms including the prices for the Urban One acquisition and its concurrent divestment became known on Tuesday.
To acquire KKDA-FM in Dallas and its sibling in Decatur, Tex., KRNB-FM, a $22 million payment will be made to Service by Urban One.
Terms call for a cash payment at closing of $18.7 million, and subtractions tied to loans, debt and transaction expenses. A $3.3 million pre-closing deposit is being placed into escrow by Urban One.
Serving as the seller’s legal counsel is Elliot Evers of Houlihan Lokey. Service’s legal counsel is Melissa G. Repp and Scott Zolke of Loeb & Loeb.
Urban One is represented in this transaction by Brook Edinger of Edinger Associates.
With those two assets, Urban One agreed to sell KZMJ-FM in Gainesville, Tex., to Encouragement Media Group, an East Texas operation expanding to Dallas. KZMJ will be used for its Fuzión Spanish-language evangelical Christian format, making KZMJ its new flagship upon closing.
Urban One will pocket $6 million from the sale of the station, which is located to the far north of Dallas-Fort Worth and has a signal largely covering Sherman-Denison, Tex., and communities north of the Red River into Oklahoma.
A 10% escrow deposit has been made and is being held by Greg Guy of Tideline Partners LLC. Tideline served as EMG’s broker of record.
