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 transaction closed on Sept. 28, shifting ownership to a family-run broadcasting company with both Spanish- and English-language stations primarily across the Western U.S.
Lotus Communications is now the licensee for 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. Serving as the broker in this transaction, representing Sinclair, is Richard A. Foreman Associates.
“Today begins an exciting era as we begin working with the amazing staff at these heritage radio stations,” said Lotus First SVP Jim Kalmenson. “These are legendary stations which share Lotus’s vision of producing local programming to serve the community and support our hometown businesses. Seattle is home to several excellent broadcasting companies who have made this a great radio market.”
For Lotus, entry into Seattle puts it in the hub of the Pacific Northwest for the first time. Founded in 1962, the company remains one of the nation’s largest privately-owned broadcasting companies. It still owns its first station, KWKW-AM in Los Angeles, along with 47 other radio stations.
A unique set of terms were agreed to between Sinclair and Lotus with respect to how much cash Lotus paid at closing. With a $5 million wire transfer immediately wired to Sinclair upon the deal’s May 28 consummation, Lotus had a choice: It could pay the remaining $13,058,604 in cash, or provide radio advertising to promote Sinclair’s television stations, up to that exact value as shown on its respective rate cards.
Neither Kalmenson or Foreman disclosed which option Lotus went with.
“Lotus was the most most attractive offer of all of the companies that came in,” Foreman said in June 2021.
What can Seattle listeners expect, now that Lotus is the owner of the three long-standing radio brands that once served as flagship properties for the now-defunct Fisher Communications?
No changes are expected at KVI. Lotus First Sr. VP Jim Kalmenson told RBR+TVBR in June 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 evolving soon. Thus, the “KOMO” brand will remain associated with Sinclair and its KOMO-4, the ABC affiliate in Seattle.
It is not known when the new call letters will be requested or how Lotus plans to rebrand KOMO-AM & FM.
Sinclair retained ownership of the radio stations — its only audio assets — for nearly eight years. Sinclair gained KVI, KOMO-AM and KPLZ and assumed an LMA for KOMO-FM in its $373.3 million merger with Fisher, which closed in August 2013. Fisher had placed its assets on the market in January 2013.
