As RBR+TVBR first reported on Tuesday (4/11), Cox Media Group is exiting the Houston market with its sale of Country KKBQ “93Q,” Classic Rock simulcast KHPT-FM & KGLK-FM “The Eagle” and Classic Country KTHT-FM 97.1 to Urban One.
Late Friday, Pacific Time, it became known how much Urban One is paying for the stations. At the same time, an existing Urban One FM is being paired with the Classic Country property and will be divested.
The asset purchase agreement signed by the two companies was submitted to the FCC’s LMS after 12pm Eastern on Friday. It was agreed to on April 1, and details how KROI-FM 92.1 in Seabrook, Tex., which is Black Gospel and branded as “Praise 92.1”; and KTHT, “Country Legends 97.1,” are being transferred to the Sugarland Station Trust.
In consideration of the trustee’s services, a $2,500 monthly fee for each station in the trust ($5,000) will be paid.
Who’s the trustee? Look no further than Scott Knoblauch of Greer, S.C., who runs Spectrum Media.
The divestitures are being made so Urban One may comply with the local radio ownership rule.
According to the filing, Urban One has entered into an agreement to sell KROI “to a minority-owned broadcaster that is a new entrant to the Houston market.” No further details were shared.
Meanwhile, Urban One “is actively engaged in discussions to sell KTHT.”
The other big revelation that came as thousands of broadcast media industry leaders began their travel to Las Vegas for the 2023 NAB Show is the price Cox Media Group is selling the cluster for.
It’s pocketing $27.5 million from the sale of 93Q, The Eagle, and Country Legends 97.1.
To some, that’s a shockingly low multiple, at just 3.5x broadcast cash flow.
KKBQ was acquired in 2000 by Cox Radio in a transaction with Clear Channel Communications, while KHPT was acquired by CMG that same year in a deal with Salem Media Group. KHPT simulcast partner KGLK and KTHT also came to CMG in 2000, as required Clear Channel spins tied to its merger with AMFM Inc.
Taking whatever sale price can be realized from KROI and KHTH actually LOWERS the price Urban One is paying for these stations. Sad to say, the radio value slide continues.
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