Following the money
Don Day | April 16, 2007Wondering where Peak Broadcasting is getting its infusion of cash – to come from nowhere and pick up two expensive radio groups?
General Electric disclosed that it lent Todd Lawley, et al $68.5 million to purchase a cluster of stations in Fresno, CA from CBS Radio late last year. The Fresno deal closed March 30th.
“(GE’s) Media, Communications & Entertainment group’s knowledge and experience in the broadcasting space is unrivaled, and their financing guidance allowed us to move forward with ease and to focus on transitioning our quality programming, customer-based advertising solutions and new media innovations to the Fresno market,” Lawley said in the GE press release.
The release also notes that GE’s Commercial Finance – Media, Communications and Entertainment arm – will “support” the acquisition of six Boise stations (KFXD, KIDO, KTMY, KSAS, KXLT & KCIX) from Clear Channel.
Filings show the Boise purchase was in the $25 million range.
Peak Broadcastings financial troubles become crystal clear when you see that Todd Lawley overpayed by 5 million dollars in 2007, lost a million dollars to Citadel in the settlement of their spat, spent a small fortune on the Broncos and then the economy went in the tank. I hope Kevin and the Mikes can turn it around before GE calls in the loans! God knows GE needs the capital…
So what will GE Capital do with a cluster of stations in Boise and Fresno…..
Maybe they can try and program it as well….. Maybe a former NBC person now working in the mailroom there can get back in the loop so to speak….This should prove to be even more interesting in the months ahead….
Just having some fun at the expense of those corporations who are way over their heads in debt.
So far the Citadel cluster in Boise is somewhere below the corporate radar. Most of the cuts have been in the larger, more expensive markets (recent cuts at KGO, San Francisco, etc), where on air personalities are paid very well for their services. If buyers were available, though, I think Citadel would sell the Boise cluster in a heart beat, either as a group or as separate stations, but at this point, they would probably have to sell them at a loss.