Eleven months.
That’s the total length of time TEGNA will have served as the owner and operator of an AM-FM combo in “America’s Finest City.”
As many suspected would happen, the company formerly known as Gannett has decided to spin off the radio component of a multi-million dollar multimedia deal that gives it the CBS affiliate in San Diego.
The price TEGNA is selling the stations for is jaw-dropping — because of how low the dollar amount is.
On Dec. 20, a 108-page asset purchase agreement was finalized and signed by TEGNA SVP/General Counsel Akin Harrison that effectively transfers the licenses of KFMB-AM & FM in San Diego to Local Media San Diego Acquisition LLC.
It marks the first U.S.-based property for a binational operation operating under the Local Media San Diego brand.
And, some industry observers may think the deal comes at a steal for the buyer.
It is paying $5 million for KFMB-AM & FM.
As reported by RBR+TVBR on Dec. 17, 2017, TEGNA paid $325 million for television station KFMB-8 and the AM/FM pair. At the time, questions regarding the future of KFMB-AM & FM dominated the conversation. With KFMB-AM & FM, TEGNA had its only radio properties — until Sports Talkers WBNS-AM & FM came into the fold in August 2019 as part of a deal to purchase WBNS-10 in Columbus, Ohio from Dispatch Broadcast Group.
However, as Gannett, the company was no stranger to radio: From 1979-1997 it owned legendary Top 40 KIIS-FM 102.7 in Los Angeles. In San Diego, during that same time period, Gannett owned KSDO-AM 1130 and what is today Univision Radio’s KLQV-FM 102.9.
TEGNA became the third TV-focused company to gain radio properties. In Seattle, Sinclair Broadcast Group continues to own News KOMO-AM & FM, Talk KVI-AM 570 and Hot AC KPLZ-FM 101.5. The stations (except for KOMO-FM) came as part of Sinclair’s acquisition of Fisher Broadcasting.
Privately owned Hearst retains ownership of WBAL-AM 1090 and WIYY-FM 97.9 “98 Rock” in Baltimore — a News/Talk and Active Rock combo.
Ultimately, it seems TEGNA was simply looking for the best spin opportunity for KFMB-AM & FM.
With the transaction comes a tower lease agreement allowing LMSD to use the TEGNA-owned KFMB tower. Terms call for annual rent of $102,000.
Furthermore, the KFMB call letters will be retained for use by TEGNA — presumably only for KFMB-8. Within 30 days of closing, new call letters will arrive at KFMB-AM & FM. LMSD will have one year to stop using the KFMB calls “in connection with the transition of relationships with radio media buying agencies and other accounts.”
LOCAL MEDIA, VETERAN LEADERS
For years, a host of Tijuana, Baja California radio stations have targeted San Diego listeners — and advertisers. Today, three of these stations — CHR/Rhythmic XHTZ “Z90,” Alternative XETRA “91X” and Rhythmic Oldies XHRM “Magic 92.5” are operated by Local Media San Diego.
Soon, Talk KFMB-AM and Classic Hits KFMB-FM “100.7 San Diego” will be added to the group, formed in December 2009 by private equity and growth capital firm Thoma Bravo through a debt acquisition arrangement involving Finest City Broadcasting, the former operator of Z90, 91X and Magic. Bravo exited Local Media San Diego in November 2018, when a management buyout transpired.
As such, Local Media San Diego is today controlled by by VP/GM Gregg Wolfson, CFO Norm McKee and Director Steve McNeely.
The other “parties to the application” include some familiar radio industry veterans.
With under 5% of assets is John Gehron, the famed former Clear Channel RVP/Market Manager for Chicago who has served as a SVP for CBS Radio and Infinity Broadcasting and today serves as Chairman of AccuRadio and as a Board Advisor for Tom Langmyer’s nascent Great Lakes Media Corp.
With 26.7% ownership in Local Media San Diego are Mel Wheeler Inc., the longtime Roanoke-based media company; and Trivest Investment Partners, controlled by Coral Gables, Fla.-based Troy Templeton.
Also involved: Stephen McNeely‘s Tantara Capital Partners, with 13.2% ownership, and Simmons Capital LLC, with 6.4% ownership.
There is no broker or finder associated with this transaction.
Now, WBNS-AM & FM employees may be wondering what the future holds for them.
