A team of investors has formed a company called Genuine Austin Radio LP and have struck a deal with Richard Oppenheimer’s Reo Radio Group to acquire KLGO-AM and KOKE-FM, which serve the Austin TX area.
The price will be $3.2M, with $2.35M due in cash at closing and the rest covered via a promissory note.
Jason Nassour will be the lead investor out of many on the asset side; meanwhile, the partners have distributed votes more or less equally. Besides Nassour, the ownership group includes Eric Raines, Kyle and Sarah Spears, Jake and Jill Guarino, Bill and Jill Williams, James McGinity and Jenna Ehlinger.
KLGO-AM calls itself The Word 1490. It’s a Class C on 1490 kHz with 1 kW-U, ND with a signal that’s nicely centered over Austin. It’s branding is Information with Inspiration.
KOKE-FM is a Class A on 99.3 MHz with 6 kW @ 328’. It serves the area to the east of town, getting only its outer contours over Austin. It calls itself Austin’s Country Alternative.
The deal amounts to a small haircut for the seller. Reo acquired the FM first, back in September 2007 in a deal with Roy Henderson. The station, KLGO-FM at the time, cost $2.05M.
The current KLGO was KFON with Reo acquired it from the Border Media Business Trust under Larry Patrick on behalf of BMP Austin License Company. The price was $1.4M.
The former total for the two stations works out to $3.45M, which in turn works out to a $250K face-value loss under the current terms.
