In April 2016, Lotus Communications agreed to part ways with a Class B AM, selling it for $50,000. Now, it is buying back the regional Mexican station.
How much is it paying for the Northern Nevada facility that’s been known most recently to locals as “La Mexicana”?
That could be a lesser question than asking why Lotus is doing the deal with Lazer Broadcasting.
A Form 314 filing made Friday with the Commission shows the company led by Jim Kalmenson is reacquiring KFOY-AM 1060 in Sparks, Nev. — a facility with 5kw during daytime hours from 1 tower and 500 watts at night from 2 towers.
And, Lotus is grabbing KFOY for the very same amount of dollars it sold it for: $50,000.
To be clear, it is not a deal rewind associated in any way with a failure to consummate the 2016 transaction. The arrangement as contracted saw Lotus collect the full amount from the buyer at closing.
What, then, is happening here?
It appears that Lazer Broadcasting, the Alfredo Plascencia-led entity that has owned KFOY for four years, is opting to focus its operations in the Reno, Nevada, market on its three FMs: KWNZ in Lovelock, KNEZ in Hazen and KZTI in Reno.
But, doesn’t this put Lotus over current FCC local ownership caps? Yes.
However, Lotus’ Form 314 filing expressly states that, should the Commission approve its purchase of KFOY, it will surrender the license of KCKQ-AM 1180, also licensed to Sparks.
KCKQ is a Class B, but unlike KFOY has 4kw during daylight hours from 1 tower and 190 watts at night from 2 towers. As such, KFOY is the superior facility.
KCKQ is presently the home of “America Matters Media” — a platform for hosts to develop their own show.
Will that continue on the KFOY facility?
Yes, Kalmenson tells RBR+TVBR, who says the deal is an engineering solution to a “quad-plex” in Reno.
And, the Reno-based America Matters Media will only get bigger and better with the move, he adds.
