Bonneville International Corp. is in the process of purchasing two more FM radio stations in Chicago for $165 million in a deal that will give the company 20 stations altogether, as many as it has ever owned.
The deal between Bonneville and Northern Illinois Broadcasting, involving WNIB-FM and WNIZ-FM, should be closed by Feb. 12, according to Bruce T. Reese, president and CEO of Bonneville.
Bonneville already owns three FM stations in Chicago — WTMX (modern adult contemporary format); WNND (hot adult contemporary); and WLUP (classic rock).
Reese said the biggest controversy in the deal — at least in Chicago and according to a New York Times article — is whether Bonneville will discontinue the simulcast classical music format of the two stations. That's because many cities are now devoid of classical music on the radio due to format changes.
"We're studying the format," Reese said. "Everyone just assumes we'll change."
He also said one other FM station in Chicago has a classical music format, so there would still be one left even if Bonneville does make a format change.
Furthermore, he said Chicago may be the only major city left in the country that has two classical music stations (or technically three, if you count the simulcasting).
WNIB is a downtown Chicago station, while WNIZ is licensed near the Illinois-Wisconsin border.
Reese said the Chicago purchase is very much in line with Bonneville's purchasing strategy of late — acquiring clusters of stations in some of the nation's largest cities.
Bonneville also owns radio stations in Washington, D.C., St. Louis and San Francisco. KSL-AM is the company's flagship station at its Salt Lake headquarters, where KSL-TV also shares space and some facilities.
Reese said the company would like to have more radio stations in the Salt Lake area, but current Federal Communications Commission multiple ownership rules prohibit that move.
He did say Bonneville's current Chicago stations are operating from two different buildings.
The two new stations will increase that to three buildings, but Bonneville's plan is to eventually house all its Chicago stations in one building when leases run out. That's also Bonneville's cost-cutting plan in other cities.
Bonneville owned 20 stations in 1996 before it began the strategy of owning more stations in larger cities and selling the rest.
Reese said the company will look to buy more stations as opportunities in the right cities become available.
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