Educational
Media Foundation (EMF) is the fastest growing company in American broadcasting.
The nonprofit Christian Contemporary Music (CCM) chain keeps acquiring
properties with the power of its wallet. Cash makes things happen.
Public
media folks thought last week there was hope EMF’s purchase of WBRU might be
stopped before closing. According to a report by WPRI-TV in Providence [link], Brown
University President Christina Paxson made a last-minute plea to avoid the sale.
Paxson urged the board of Brown Business Services (BBS), to consider an
alternative offer from Rhode Island Public Radio.
BBS
is a separate nonprofit entity set up by Brown University to operate WBRU, a
commercial station at 95.5 FM. For many years WBRU had a popular and
influential Alternative Rock format. Earlier this year EMF and BBS agreed to a
deal to sell WBRU to EMF for $5.63 million cash.
The
FCC has already approved the deal. EMF’s K-LOVE programming has been on WBRU
since September 1st, thanks to a temporary lease agreement with BBS.
But, the final closing has not yet occurred. But there is no reason to think it
won’t be finalized.
ENTER BILL LICHTENSTEIN
 |
| Bill Lichtenstein |
The
new interest in scuttling the EMF purchase of WBRU emerged when Brown
University, and WBRU, alum Bill Lichtenstein, launched a movement to stop the
sale.
Lichtenstein is a legendary New England broadcaster, program producer and
print journalist.
He started his career in radio as a teenager working at WBCN, Boston’s
seminal album rock station. Lichtenstein attended Brown (he graduated in 1978)
where helped build WBRU from small student station to an Alt Rock powerhouse.
 |
| Torey Malatia |
According
to the report by WPRI-TV, Lichtenstein encouraged Torey Malatia, CEO of Rhode
Island Public Radio (RIPR), to make a counter offer for WBRU. That effort led
to Brown President Paxson’s plea for BBS to drop the agreement with EMF and
craft a new deal with RIPR. But apparently that is not going to happen.
BBS
has shown no interest in RIPR’s offer. We contacted Malatia to see if anything
has changed and he replied by email:
Brown Broadcasting
Services is independent from Brown University. BBS has a contract to sell 95.5 [to EMF].
I’m stating the obvious, but BBS has not communicated any intention
besides honoring their contract to sell to EMF. I haven’t heard anything to the
contrary.
So
EMF’s fat wallet wins.
K-LOVE
KEEPS GROWING IN THE BAY AREA
Educational
Media Foundation (EMF) has been turning heads lately because their
satellite-delivered format K-LOVE continues
to expand into large markets. Last week EMF announced it has purchased KRSA
89.3 FM licensed to Moss Beach, California. Also
included in the deal is KRSA’s FM translator for 103.3 FM, licensed to San
Francisco. EMF is paying $414,000 cash to the previous owner.
The
purchase means that K-LOVE now will be
available on at least six FM frequencies in the Bay Area. Because EMF has been
unable to acquire a full-market FM, their strategy is to buy signals with
smaller coverage areas and then upgrade them.
EMF has become a genius at making the most of secondary FM signals. The chart on the right
shows the robust presence that K-LOVE has in the San Francisco-Oakland-San Jose
metro area.
K-LOVE is one of two satellite delivered formats operated by EMF –
the other is Air1, an older-skewing
version of K-LOVE.
K-LOVE
has two primary signals in the Bay Area, KLVS, south of San Francisco and KLVR
to the north. EMF is in the process of upgrading their KLVS’ translator in Oakland
to cover densely populated areas on the San Francisco peninsula.
KLVS’
translator in San Jose has only 10-watts but it covers a wide area because of
an excellent transmission site. EMF has also increased it’s streaming and on-demand services.
The
final two maps in the chart are the new acquisitions. KRSA 89.3 FM gets K-LOVE
into previously under-served area on the peninsula. However, KRSA’s San
Francisco translator is the big prize.
EMF’s
San Francisco move comes on the heals of their spectacular acquisition of KWSD 100.3
FM reaching the entire Los Angeles market (map on the right). EMF bought 100.3
FM and two other stations in smaller markets for $57,217,989, cash.
The sad thing is that WBRU sold out for so little. $5.6mil is a serious lowball offer for a full Class B commercial license in market #44. If they'd sold a few years previous before iHeart, Cumulus, et al had gotten themselves so publicly into financial trouble? Or if they'd waited a few years for iHeart/Cumulus to move past their current debt problems and for the CBS/Entercom deal to digest? Then they probably could've gotten much closer to $10mil for it.
ReplyDeletePlus $5.6mil is wildly insufficient to create a viable endowment for operating costs. If you assume a 3% rate of return on $5.6mil (and that may be optimistic) that's only $168,000/yr. That's not that much money when you've got rent to pay (Brown does not give them that studio space for free...and I'm surprised Brown isn't kicking them out given the grief BBS has caused them) and substantial streaming costs to cover. And IF they have any professional staff remaining, even just an engineer, that'll eat up a lot of cash, too. Plus they still think they can do big concerts multiple times per year. $168k ain't gonna allow that.