Back out in the cold

The most startling aspect of Ferris O’Brien’s purchase of KINB this year, I believe, was the purchase price itself: “Two million American dollars for a 900-watt rimshooter.”

That price proved to be the undoing of the Spy:

According to O’Brien, the purchase fell through when the station did not appraise for [seller] Last Bastion Trust’s asking price.

“When it comes back at nowhere near that number, it just doesn’t make sense,” O’Brien said.

The FCC didn’t have any problem with it; they’d granted the assignment of the license in November, pending the tying up of all the loose ends.

And it’s hard to fault Eliot Evers, operator of Last Bastion, for asking that kind of money, since that’s basically why the trust, which assumed ownership of a bunch of Citadel stations after the ABC merger, existed in the first place: to extract maximum value from the leftover properties. Still, somebody should have done due diligence.

In the meantime, if you haven’t heard the Spy lately, they’re at TheSpyFM.com.





4 comments

  1. Brett »

    5 December 2010 · 7:10 pm

    I’ve never bought a radio station, but wouldn’t you have it appraised before you started negotiating to buy it?

  2. CGHill »

    5 December 2010 · 7:32 pm

    Idle speculation: What if the station had been previously appraised, pending the results of a specific ratings book — and that book came in below expectations?

  3. Brett »

    5 December 2010 · 9:26 pm

    I expect there are lot of factors that affected the ultimate outcome; I suppose some of the picture would be cleared up if someone winds up buying it for the actual $2 mil.

  4. CGHill »

    8 December 2010 · 10:10 am

    Patrick at The Lost Ogle has a pretty good summation of The Story So Far; apparently that final appraisal came back at a mere $500k. More affordable, right? But I suspect Ferris wants nothing more to do with these people in any way, shape, size or form.

    A commenter to that TLO story suggested LPFM, which won’t work: it’s noncommercial only, limited to 100 (not 1000) watts, and there are no slots open anyway. (I checked the FCC’s official frequency-finding tool.)

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