Beasley Media Group has closed on a pair of deals that will see its first station cluster in the Fort Myers-Naples, FL market divvied up between two operators already in market No. 51. Sun Broadcasting and Fort Myers Broadcasting will each pay $9 million to solidify their presence there as Beasley exits a market that is also home to its corporate offices.<\/p>\n
Sun Broadcasting struck a $9 million deal<\/a> with Beasley in August to buy classic rock \u201c96 K-Rock\u201d WRXK, CHR \u201cB-103.9\u201d WXKB, and three FM translators \u2014 the Bonita Springs-licensed W268AH (101.5), the Suncoast Estates-licensed W243BM (96.5), and the Naples-licensed W286AK (105.1). Together, the translators are used to create the classic hip-hop formatted \u201cThe Bounce\u201d station relayed off the HD2 channel of WXKB.<\/p>\n Sun already owned four radio station in the market, including talk \u201c92.5 Fox News\u201d WFSX, rhythmic CHR \u201cFly 98.5\u201d WFFY, \u201cTrump Country 93.7\u201d WHEL, and classic rock \u201c94.5 The Arrow\u201d WARO, in addition to WXCW-TV and three low-power TV stations.<\/p>\n Fort Myers Broadcasting has picked up soft AC \u201cSunny 106.3\u201d WJPT, Spanish tropical \u201cPlaya 99.3\u201d WWCN, and \u201c770 ESPN Southwest Florida\u201d WBCN \u2014 as well as two Fort Myers licensed FM translators, W282BY (104.3) and W251AL (98.1), which both simulcast WBCN. They will be paired with AC WINK-FM (96.9), Spanish AC \u201cLatino 97.7\u201d WTLQ-FM and soft AC \u201cWave 101.1\u201d WAVV, in addition to WINK-TV.<\/p>\n Both the buyers have already operated stations in the market, and each required waivers from the Federal Communications Commission to exceed current limits. The FCC agreed, allowing Sun Broadcasting to own six FMs and Fort Myers Broadcasting to own five. With 35 full-power stations in the market, the limit had been four FMs.<\/p>\n The pair of deals will have a big impact on the market. Beasley has had the biggest market share in the Fort Myers-Naples market. BIA estimates that a quarter of the market\u2019s roughly $33 million in annual radio revenue was spent with Beasley. Now post-closings, BIA estimates Sun will have the largest share \u2014 with more than a third (33.9%) of all radio ad dollars going to its stations. Fort Myers will follow with an estimated 28.3% share. BIA says iHeartMedia and Renda Broadcasting both have an 18% share of the market\u2019s radio revenue.<\/p>\n It may be leaving Fort Myers-Naples, but Beasley continues to own Florida stations. While it struck an $8 million deal to sell classic rock \u201c98.7\u202fThe\u202fShark\u201d<\/a> WPBB Tampa to K-Love \u2014 which has flipped it to contemporary Christian WKVZ \u2014 Beasley continues to own five stations in that market.<\/p>\n During an earnings call with analysts in August, CEO Caroline Beasley explained the moves are part of the company\u2019s effort to \u201cstreamline\u201d its portfolio and strengthen its balance sheet. \u201cWe plan to use the net proceeds to reduce debt and therefore strengthen our capital structure,\u201d Beasley said. \u201cWe\u2019ve been clear about our priorities, and we\u2019ve taken action from meaningful cost reduction to portfolio optimization and targeted debt repayment.\u201d<\/p>\n The closing of the Sun Broadcasting and Fort Myers Broadcasting deals may be the piece that Beasley has been waiting for as it told investors earlier this month it is \u201cactively engaged in discussions<\/a>\u201d with various stakeholders as they examine a number of potential alternatives regarding a restructuring of the company\u2019s outstanding debt. Last week, Beasley exercised an option to use a 30-day grace period on an $10.2 million interest payment that was due on Feb. 1.<\/p>\n