Update 4/4/09: When Grupo Radio Centro takes over on April 15, expect the new station to be named “Exitos 93.9” based on the registration of exitos939.com by the company.
GRC will pay Emmis $7 Million a year with an option to purchase the station at any time over the next 7 years for $110 Million. If they cannot purchase the station due to the current law prohibiting internationally based companies from owning U.S. broadcast licenses, they may assign the option to buy to another company. Grupo Radio Centro operates 14 stations in Mexico, 11 of which are in the Mexico City market.
Emmis will continue to operate Urban KPWR “Power 106” in Los Angeles.
Instant Insight: This is the first of many deals of this nature in the coming months and years. While our radio groups are struggling to maximize revenues, International groups can find niches and markets where they can position themselves and make an inroads into the American media landscape.
Additionally, does this mean the end of Rick Dees career in Los Angeles? He’s already been paid to leave Clear Channel while CBS and Citadel have been eliminating higher priced personalities nationwide. Unless Mt. Wilson Broadcasting’s “Go Country 105” KKGO or Bonneville’s AAA “100.3 The Sound” see Rick worth the money to boost their profile in the market there doesn’t seem to be a place for Dees in Hollywood anymore.