Tavis Smiley Converts LMA of KBLA To AM Buy

As the rock ‘n’ roll era began, it was a popular choice among teens tuning to L.A.-area AM radio stations. In 1962, it became a R&B pioneer, sticking with the KDAY call letters. In April 1991, new calls were put in place to reflect an all-Business News format for Los Angeles. Today, it is the home of a spoken word format focused on African Americans in the Southland.

That programming is thanks to an LMA put in place in November 2020, when its sale from Multicultural Radio Broadcasting was announced. Now, at long last, a sale agreement has been filed with the FCC for its approval.

But, are the terms the same as on Nov. 19, 2020, when RBR+TVBR reported that the Arthur Liu-led MRB was selling  KBLA-AM 1580, licensed to Santa Monica, Calif., to Tavis Smiley?

No. According to a newly finalized Asset Purchase Agreement, Smiley is paying $6,896,760 for KBLA.

That’s a haircut from the original sale price of $7.15 million shared in November 2020 by broker of record Greg Guy of Patrick Communications, representing Smiley.

A $357,500 escrow deposit was made in November 2020 and has been held by Patrick Communications, the buyer’s representative. The transaction saw the newly formed Smiley Radio Properties pay $10,000 per month to lease KBLA’s equipment, with an annual increase of 3%, to assume control of the station ahead of closing.

As such, $1,092,500 has been paid by Smiley to Liu. The remainder will be paid in cash.

Serving as MRB’s legal representative is Mark Lipp of Fletcher Heald & Hildreth. Smiley’s legal counsel is David O’Neil of Rini O’Neil P.C.

KBLA is a 50kw AM with a directional 2-pattern signal using 4 towers during daylight hours and 6 towers during nighttime hours.