Bonneville International Corp., the broadcast media arm of The Church of Jesus Christ of Latter-day Saints, announced Thursday morning that it is entering into an agreement to purchase 15 radio stations in the Intermountain area, including Salt Lake stations KSFI ("FM-100"), KQMB ("Star 102") and KRSP ("Arrow 103.5") and a proposed new AM station (AM-820) in Salt Lake City.
The tentative deal, contingent on Federal Communications Commission approval at two levels, also includes four other Utah radio stations in the St. George/Cedar City market: KREC (FM-98.1), KSNN (FM-93.5), KDXU (AM-890) and KUNF (AM-1210).
Additionally, it involves buying seven more Idaho radio stations in the Blackfoot/Idaho Falls/Pocatello market: KCVI (FM-101.5), KFTZ (FM-103.3), KLCE (FM-97.3); KPLV (FM-105.5), KZNR (AM-690), KZNI (AM-1260) and KBLI (AM-1620).
The purchase price has not been disclosed. All the stations are currently owned by Simmons Media.
"We are extremely excited about this opportunity," Bruce Reese, president and CEO of Bonneville, said. "These are great radio stations with terrific staffs. In a period of rapid consolidation in radio and television, this acquisition gives us the size to continue to be a significant local player in our historic headquarters territory."
Current FCC regulations prohibit Bonneville from owning more radio stations in the Salt Lake market because a sister corporation owns the Deseret News.
"The newspaper-broadcast cross-ownership rule is under review by the FCC at this time," Reese said.
He said this makes the sale more tentative than the usual station sales, which also require individual FCC approval.
"In this era of proliferation of media outlets, many which are unregulated as to both reach and content, we believe the FCC will eliminate the rule," Reese said. "We obviously can't buy the Salt Lake stations without commission approval, but we're optimistic that approval will come."
The FCC has publicly committed to conclude its review on cross-ownership by the spring of 2003.
"If they say we can't own them, we can't own them," Reese said. "But we think the rule has far outlived its usefulness."
The FCC has been reviewing ownership rules and policies for the past year in what has become the most comprehensive look at media ownership regulation ever undertaken. The FCC Web site contains dozens of lengthy documents that address the issue.
FCC Commissioner Michael J. Copps has said changes in ownership policies have the potential to "remake our entire media landscape, for better or for worse."
The newspaper/broadcast cross-ownership rule hasn't been changed since it was adopted in 1970, while the FCC has relaxed all other ownership limitations significantly.
Ironically, Bonneville's tentative purchase includes KSFI, a station it sold to Simmons back in 1977-78, though in hindsight many have considered that perhaps the biggest miscalculation ever in Salt Lake radio.
"We're excited to get it back after 25 years; the Simmons have certainly improved 'FM-100' over what we sold them," Reese said.
KSL originally had to sell KSFI to purchase a Texas radio station, because of the FCC's ownership limitations.
"Bonneville is a broadcaster with a strong sense of community and a commitment to its people," David Simmons, president/CEO of Simmons Media, said. "We know that our stations and our people will be able to continue to grow in this new environment."
If this deal goes through, Simmons will end with just three Salt Lake stations — KXRK ("X-96"), KZNS (AM-1280); and KJQN (FM-100.7).
This purchase would also more than triple Bonneville's Salt Lake radio audience. Among the age 12-plus listening group and adults, ages 25-54, KSFI is No. 1, according to the latest Arbitron rating estimates. KSL and KRSP are also in the top five, with KUBL and KSOP.
This much stronger Salt Lake radio presence by Bonneville will give the church, through all its subsidiary media outlets, a much greater media presence than before.
However, Reese said while that may be true, Bonneville will still own fewer stations locally than either Clear Channel or Citadel. Bonneville also remains a rather small player in the U.S. radio market, when compared to companies like Clear Channel.
Stuart Stanek, Salt Lake general manager for Clear Channel Broadcasting, which owns seven Salt Lake stations and manages four others, said the proposed sale represents a significant holding.
"These stations have been very successful," he said. "The fact that they stay in local ownership is good for the market."
Eric Hauenstein, Salt Lake general manager of Citadel Broadcasting, which owns six local stations, said it's too soon to make much of a comment. "It clearly will be a new environment," he said.
Ken Verdoia, senior producer for KUED-TV and a longtime Salt Lake broadcaster, said Bonneville's proposed expansion plans do not shock him.
"I'm not aghast. . . . There are other significant media empires here," he said.
Bonneville is owned by Deseret Management Corp., a holding company for businesses affiliated with the LDS Church. Deseret Management also owns other media in the Salt Lake market, including the Deseret News, KSL-TV and KBYU-TV and radio.
E-MAIL: lynn@desnews.com