FCC OKs Sale Of Hot 102/San Juan
June 20, 2012 at 3:18 PM (PT)
The FCC has approved the sale by MSG RADIO, INC. of Spanish Top 40/Rhythmic WTOK-F (HOT 102)/SAN JUAN (formerly WIAC-F) to WIAC-FM, INC., along with a waiver of the ownership cap rules. The approval came over the objection of RAAD BROADCASTING CORP.
The matter started with a 2007 sale of the station by LUIS A. MAJIA to MSG for $4 million, which drew objections based on "lack of candor" in withholding documents connected to a $12.5 million sale of related assets and a Shared Services Agreement with MADIFIDE, INC., commonly owned with WIAC-FM, INC. by members of the SOTO family, which the objectors claimed showed that the station was actually being transferred in an unauthorized manner to the SOTO group.
The Commission rejected that argument, and, based on the same argument another SOTO company, ARSO RADIO CORP., made in getting a waiver for the acquisition of Top 40 WMIO/CABO ROJO, PR (the unique characteristics of the PUERTO RICO ARBITRON Metro), granted a waiver to allow the sale to go through, and rejected RAAD's allegations that the sale to MSG was "warehousing" the station for the SOTOs' ultimate benefit.