Part of the reason the 2010 sale to SoCal935, Inc. never closed was pending litigation between former Magic Broadcasting owner Don McCoy and creditor/current license holder Durden Enterprises after a 2009 restructuring of the ownership to extend to maturity and reduce the interest rate of Magic’s then $62.5 Million debt.
Don McCoy was quoted today by LARadio.com as stating, “I don’t understand someone would buy a station with a stockholder lawsuit filed against it. It will be interesting to see what happens.”
Despite what has been stated in some other reports, no change in format at the station is imminent. The sale still needs to go through the FCC approval process and have the potential legal issues that held up the prior sale attempt resolved. It will be late summer at the earliest before RBC begins programming the station.
In the February 2013 PPM monthly ratings, KDAY was tied for 28th in the market with a 1.1 share.
Original Report 4/10 1:15am: Magic Broadcasting has agreed to sell Classic Hip-Hop “93.5 KDAY” KDAY Redondo Beach/Los Angeles and KDEY Ontario/Riverside to RBC Communications for $19.5 Million.
Look for a flip to a Chinese format to accompany the sale. Phoenix Satellite Television, a British Virgin Islands based company which operates 6 cable networks in China owns a 20% stake in RBC. Anthony Yuen holds the other 80% through his RBC Investments LLC.
This is the second attempt made to sell the KDAY/KDEY combo. A 2010 sale of the stations to SoCal935, Inc for $35 Million never closed.