SALT LAKE CITY, Jan. 19, 2011 /PRNewswire/ -- Deseret Management Corporation (DMC), a for-profit arm of the Church of Jesus Christ of Latter-day Saints, announced today that it has entered into a definitive agreement to sell 17 of its Bonneville International (BIC) radio stations to Hubbard Broadcasting, Inc. Under the terms of the asset purchase agreement, Hubbard Broadcasting will acquire the radio stations as part of a cash transaction for approximately $505 million. As part of the transaction, Bruce Reese, President and CEO of Bonneville, and Drew Horowitz, Chief Operating Officer of Bonneville, will transition to Hubbard Broadcasting, Inc. The sale is expected to be finalized upon FCC approval and other customary closing conditions.
Stations included in the agreement are: WARH, WIL, WXOS (St. Louis); WDRV, WILV, WTMX, WWDV (Chicago); WTOP, WFED, WWWT, WTLP, WBHQ, WWFD (Washington, D.C.); WKRQ, WREW, WUBE and WYGY (Cincinnati).
"Bonneville has built all its media properties into profitable, well-managed media outlets in lucrative markets, which has made them attractive to many potential buyers through the years," said Mark Willes, President and CEO of DMC. "Hubbard Broadcasting, Inc. is a well-respected business that represents many of the same values Bonneville embraces, which we took into consideration when the company approached us. We felt Hubbard's long term hold strategy was the right fit for these stations."
DMC will retain its Bonneville stations in Los Angeles, Phoenix, Seattle and Salt Lake City with their accompanying station managers and staff. The company plans to expand the regional and the online presence of these stations while supporting the core radio programming. DMC's websites in its western markets reach more than 7 million combined unique users with more than 250 million combined page views each month. The sites touch users in eight western states, making them one of the most significant regional networks of digital properties offered by a media company.
"It is evident that a strong regional component is vital to the success of combined digital and broadcast marketplaces," Willes continued. "It makes strategic sense for us to have these western markets continue as part of DMC."
As part of this transition, Jeff Simpson will now oversee the remaining Bonneville markets. Simpson has been with DMC since 2004 and is currently the COO of KSL Broadcasting.
"We have excellent market managers and staff in each Bonneville location and I look forward to working with them to achieve their market goals," said Simpson. "We will maintain our commitment to serve the communities we broadcast in and provide the quality sports, news and entertainment our listeners have come to expect."
Bonneville International is a legacy broadcaster dedicated to informing, entertaining and uplifting its audiences. For more information about Bonneville International, please visit www.bonneville.com. For more information about Deseret Management Corporation, visit www.deseretmanagement.com.
Star Media Group, Ltd., along with Lazard, served as financial advisors in this transaction.
About Deseret Management Corporation
Deseret Management Corporation was organized in 1966 to manage some of the commercial companies affiliated with The Church of Jesus Christ of Latter-day Saints. Today, it owns and oversees hospitality and media companies, including the Deseret News, Deseret Digital Media, KSL Television & Radio and Bonneville Communications.
SOURCE Deseret Management Corporation