Friday, April 17, 2009

Equity Media Goes Up for Bids

Equity Media Holdings LogoOne of the largest broadcast groups, Equity Media Holdings, concluded the first part of their liquidation on April 16, 2009 as part of their bankruptcy filing. According to press reports nearly 60 stations received bids with the total being slightly over $21 million for those stations. The biggest buyer was Daystar who bid $7.4 million to acquire seven full-power television stations and eight low-power and Class A stations. Max Media grabbed three full-power Fox stations in Montana including KMMF in Missoula, KBTZ in Butte and KLMN in Great Falls as well as three low-power stations for $1.3 million. Previously Max Media had a deal with Equity Media in early 2005 to acquire those same exact stations for $4.25 million. Another bidder, Valley Bank bid over $7 million to buy three stations including KQCK in Cheyenne, Wyoming. Better Life Television bid $975,000 to acquire full-power KTVC in Roseburg, Oregon and low-power station KAMK-LP in Eugene Oregon.

Overall it appears that the buyers got great prices for these stations. The low prices are likely the result of the inability for many potential buyers to obtain financing from banks and investors. Another likely reason for the low prices is that the majority of the Equity stations still need to have digital facilities built which alone could cost hundreds of thousands per station.

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