On June 3, RBR+TVBR first shared the news that Sinclair Broadcast Group had opted to sell its lone radio broadcasting stations — a pair of AM spoken-word stations, a heritage Hot Adult Contemporary FM, and an FM that simulcasts one of those big AM properties.
The buyer is Lotus Communications. Now, paperwork filed with the FCC offers new details on the deal — including a pending call-letter change for the AM/FM pair, and just how much cash Lotus will pay Sinclair.
As previously reported, Lotus is agreeing to acquire Talk KVI-AM 570, all-News KOMO-AM 1000 and Hot Adult Contemporary KPLZ-FM “Star 101.5” in Seattle; along with Class C KOMO-FM 97.7 in Oakville, Wash. with a booster adjacent to Seattle-Tacoma International Airport.
The deal is valued at $18,058,604. And, broker Richard A. Foreman Associates is holding on to a $903,000 escrow payment.
There’s a unique set of terms with respect to how much cash Lotus will pay Sinclair at closing.
First, a $5 million wire transfer will be immediately wired to Sinclair upon the deal’s May 28 consummation.
Then, Lotus has a choice: It can either pay the remaining $13,058,604 in cash, or it can provide radio advertising to promote Sinclair’s television stations, up to that exact value as shown on its respective rate cards.
It could represent a huge win for Lotus, which is already getting a bit of a bargain by grabbing four radio stations in Market No. 12 for less than $20 million.
A NEW IDENTITY FOR AN ALL-NEWS LEADER
Once Lotus gains control of the stations, no changes are expected at KVI. Lotus First Sr. VP Jim Kalmenson told RBR+TVBR earlier this month that he plans on keeping KOMO-AM & FM as is. “KOMO is as good of a news station as I’ve ever heard. That ain’t changin’ … Take that away from the market, and it would be a criminal act! KOMO Radio is indispensable.”
While the format may not be changing, it turns out the call letters are.
The agreement specifically states that the KOMO-AM and KOMO-FM calls will be changing, so the “KOMO” brand will remain associated with Sinclair and its KOMO-4, the ABC affiliate in Seattle.
It is not known that the new call letters will be or how Lotus plans to rebrand KOMO-AM & FM.
