AUSTIN, Texas, Dec. 22 /PRNewswire/ -- Capstar Broadcasting Partners, of Austin, the nation's largest owner of radio stations, today announced that Capstar has agreed to acquire Austin radio stations KASE-FM and KVET-AM/FM of Austin, in a $90 million transaction. Completion of the transaction, which is subject to regulatory approval, is expected to occur by the second quarter of 1998. Capstar's regional operating company, GulfStar Communications, Inc., also based in Austin, will operate the stations through a local marketing agreement ("LMA"), effective in the first quarter of 1998. KASE-FM (100.7 MHz) debuted on March 30, 1969, and has been the ratings giant in Austin radio for over 20 years. KVET-AM (1300 KHz) was launched in 1946 by former Congressman Jake Pickle, Willard Deason, former U.S. Treasury Secretary and Texas Governor John Connally, Ambassador to Australia Edward Clark, KTBC Channel 7 General Manager Jesse Kellam and others. KVET-FM (98.1 MHz) went on the air in 1950 under the call letters KHFI-FM, becoming Austin's second FM station. Most recently, KASE-FM and KVET-FM have successfully employed country music formats, while KVET-AM utilizes a news/talk/sports format. KVET has been the flagship radio station for all University of Texas at Austin sports reporting since 1995. KASE-FM has consistently been voted by radio general managers as one of the top twenty "Most Admired Stations" in America. It was the first station to win the coveted "Station of the Year" award from the Country Music Association four times and was given its second Billboard Magazine "Station of the Year" award in 1997. Steve Hicks, Chief Executive Officer of Capstar Broadcasting Partners, said: "These three stations are undisputedly Austin's finest and they are a big part of what makes Austin a great place to live. The rich history of the stations, paired with remarkable talent and fine programming, have made KVET- KASE bonafide Austin institutions. I have a tremendous respect for the legacy that Roy Butler and Ron Rogers have created and I am proud to welcome these crown jewels to our family of radio stations. This is indeed a great day for Capstar, GulfStar and KVET-KASE." Roy Butler, Chairman of KVET-KASE and former Austin Mayor, said: "The real heroes of KVET-KASE are our President Ron Rogers and our professional staff whom I consider the absolute best in the business. Everyone at KVET-KASE is like family and, while we have been approached by many fine national broadcasting companies, I'm delighted that we are doing business with Steve Hicks. He is head of the nation's largest owner of radio stations but he lives in Austin and I'm sure he will continue our local relationships and our stations will still be 'home-owned' in that respect." John Cullen, President and Chief Executive Officer of GulfStar Communications, Inc., said: "With over 10 years as the number one radio station in Austin, KASE has successfully served the people of Austin and surrounding areas as its premier radio station. KVET and KASE have set the standard of broadcasting excellence in Austin. With Ron Rogers continuing this tradition of excellence as Regional Vice President of GulfStar Communications-Central Texas, the future of radio in Austin and Central Texas has never looked brighter." Ron Rogers, who has just completed his twenty-third year as KVET-KASE President and General Manager, said, "I'm most grateful to Roy Butler for his leadership and for allowing us the latitude to remain the market leaders. I'm deeply indebted to our great staff of broadcasting professionals for their hard work and dedication. We're delighted to join Steve Hicks and his team to continue this tradition of excellence." Capstar was formed last May by Steve Hicks, and the Dallas private investment firm of Hicks, Muse, Tate & Furst, Incorporated. Capstar currently owns and operates or has agreed to acquire 316 radio stations in middle markets across the country, making it the largest owner of radio stations in the nation, based on station count, and one of the largest owners and operators of radio stations in terms of revenue and cash flow.
SOURCE Capstar Broadcasting Partners, Inc.