Emmis Communications has announced an agreement to sell Los Angeles’ hip-hop radio station Power 106 to an affiliate of the Meruelo Group for $82.75 million. The transaction, which is subject to closing adjustments and prorations, pending FCC and other regulatory approvals, is expected to close later this year.
Chairman and CEO of Emmis Communications Jeff Smulyan said in the press release:
“Power 106 has been part of the Emmis family for more than 32 years, so this day is bittersweet, but I am confident that the station and our team are in good hands … The Meruelo Group will be great owners of this historic brand, and take it to even greater heights.”
A Local Marketing Agreement (LMA) will begin promptly following the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
Meruelo Group’s Chairman and CEO Alex Meruelo also issued a statement:
“The acquisition of Power 106 is a game changer for our group and our media division. As a fan and someone who has had a business relationship with this station for more than 30 years, I understand the importance of Power 106 to this community. We are committed to bringing the resources, talent and passion necessary to make this legendary brand the #1 radio station in Los Angeles.”
The Meruelo Group, whose Meruelo Media affiliate acquired Los Angeles TV station KWHY-22 in 2011 and radio station KDAY-FM in 2014, is the largest minority-owned media group in California.