Radio Station Purchase Agreement

Wise buyers will carefully study all due diligence materials to ensure that finances are acceptable and that the station (s) and all devices operate in accordance with FCC rules and regulations. The buyer should determine whether the terms of all acceptable contracts and leases are acceptable, and whether the price of the station is fair and within budget. In 2011, Nexstar[11] filed an agreement action against the channel`s managing partner, Granite Broadcasting, against the channel`s managing partner, after temporarily losing its membership in Fox on a WISE-TV sub-channel due to a reverse clearing dispute, having effective control over the outlets of five major networks (ABC and MyNetworkTV on WPTA). and NBC, Fox and The CW on WISE-TV; malara Broadcast Group and operated under Granite agreements). [70] The appeal was settled by mutual agreement in February 2013, after which Fox membership was referred to WFFT. [71] On March 12, 2014, the FCC Media Bureau announced that it would continue to analyze transactions by television channels that include sharing agreements, particularly those with a call option „likely to thwart any inducement of the licensee to increase the value of the channel, as the taker is unlikely to recognize this increased value.“ [88] Under the new provisions, broadcasters must demonstrate in their transaction requests how such transactions would serve the public interest. [88] The National Association of Broadcasters (NAB), which, with broadcaster groups such as Sinclair Broadcast Group, rejected the proposal to ban JAS, presented a compromise proposal in which the licensee would have control of at least 85% of the channel`s programming in a sharing agreement, held at least 70% of advertising revenue and „would retain at least 20% of the value of the channel in the licence itself“. [89] FCC Commissioner Ajit Pai and NAB President Gordon Smith also opposed the new rules on joint sales contracts, arguing that they would prevent minority ownership of minority companies on television channels. [82] [90] However, Tom Wheeler proposed the restrictions, in the hope of encouraging more women and minorities to make their own channels, due to the continued consolidation of the television industry through corporate mergers and sharing agreements. [91] After the approval of Sinclair`s purchase of Allbritton, Commissioner Ajit Pai criticized the FCC`s new guidelines and his approval of Sinclair`s proposal to close the stations in order to comply with them.

He described the three Allbritton stations as „victims“ of the „crackdowns“ against joint sales contracts and told WCIV: „Clearly, the Commission considers that it is better for this station to come out of the business than the fact that Howard Stirk Holdings owns the chain and participates in a joint sales contract with Sinclair. I disagree. That`s how I bet Charleston consumers would make the bet. [82] In September 2014, Sinclair backtracked on its original plans and agreed to sell the licensed assets of WCIV, WCFT and WJSU to Howard Stirk Holdings for US$50,000 each and leased them until FCC approval.