It’s a Fargo, N.D., based media company that does business as Flag Family Media.
And, it is the latest buyer of radio stations — and one of just a handful of non-religious, for-profit entities that have emerged as investors in additional AM and FM stations in the last 18 months.
In a transaction brokered by Susan Patrick of Patrick Communications, Flag — the company legally known as Bakken Beacon Media, led by President Steve Hallstrom — is agreeing to acquire two FMs and an AM in Grand Rapids, Minn., from James and Colleen Lamke.
The deal is valued at $1.4 million, and sees Lamke Broadcasting parting ways with the following facilities:
- KOZY-AM 1320, a Class B with a nighttime directional signal, using 1 tower during daylight hours and 3 towers at night for a 5kw output. K226CV in Grand Rapids is also included in the sale.
- KBAJ-FM 105.5 “J105,” a Classic Rocker licensed to Deer River, Minn., with a 100kw Class C1 signal covering Hibbing, and stretching as far as the western perimeter of Duluth
- KMFY-FM 96.9, an Adult Contemporary station that shares the same signal contour as KBAJ.
The transaction, approved June 25, includes the property housing the stations’ offices and studios and all of the equipment, fixtures and furnishings. Also included in the deal: the stations’ antennas and the FM tower lease.
The deal also includes a $60,000 accounts receivable clause. At closing, any outstanding payments up to $60,000 will go to the Lamkes. Once that threshold is met, Flag Family Media keeps the accounts receivable payments. It retroactively applies to May 1, 2021.
A $75,000 deposit is being held in escrow; funds of $1.075 million will be payable in cash at closing and immediately pay off a sole outstanding loan of the Lamkes, from Grand Rapids State Bank.
The remaining $250,000 balance will be represented via a Promissory Note personally guaranteed by Mr. Hallstrom and by partner Scott Hennen.
Flag Family Media’s other assets are comprised of News/Talk WDAY-AM 970 and WZFG-AM 1110 and K222DF at 92.3 MHz, “The Flag” in Fargo, and KTGO-AM 1090 & K224FJ at 92.7 MHz, “The Flag,” in Tioga, N.D.
This suggests that KOZY-AM will rebrand as “The Flag,” mixing local content with syndicated programming from such Talk hosts as Alex Jones, Charlie Kirk and Mark Levin.
Once the deal closes, Flag Family Media will compete for local ad dollars against Adams Publishing Group, and its Herald Review daily newspaper; Midwest Communications; and the RP Broadcasting and Paskvan Media Stations group.
