Closing the GAP on LMAs

1 Comment on “Closing the GAP on LMAs”

1. #1 Oldtimer
   on Apr 27th, 2008 at 10:25 pm

   There are several interesting side notes to this filing.
   1) The purchase price for each station includes the “retirement” of loans issued originally by Clear Channel to Intermart Broadcasting. GAP West must have reimbursed CCU for those loans at the time GAP purchased the other stations in these 2 markets and now the retirement of those loans becomes part of the purchase price. The loan amount for KSNQ is $941k and for KEGE $995k. Additionally, GAP is paying Intermart $83k for KSNQ & $95k for KEGE.
   2) It looks like it will take about $1M+ to own an FM in either of these markets given the total purchase price for each of these stations along with the earlier purchases by Sand Hill Media and Locally Owned Radio for construction permits from College Creek.
   3) Each purchase agreement also carries with it assumption by GAP of some pending litigation. The original grant of the CPs to Intermart have pending requests for the full Commission to review the prior decisions of the Media Bureau. The MB denied informal objections by Astounding Productions in Twin Falls and Paul Anderson’s Idaho Wireless in Pocatello of the CP grants to Intermart based on the fact that Intermart got its auction money from Clear Channel but did not disclose that fact and thus Astounding & ID Wireless claim that Intermart was acting as an “agent” for Clear Channel and CCU did not have standing as auction participants. The request for the full Commission to review the actions of the Media Bureau was filed in May of 2003 but has yet to be decided.

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