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Larry Wilson
January 1, 2013
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A little over three years ago, All Access asked Larry Wilson how big he sees his new radio group, Alpha Broadcasting, getting. "We're going to keep our options open, but it's too early to tell how big we'll get," he said. "I don't expect to look at anything in other markets in 2010; I've got plenty to do in Portland. All I do know is that Alpha is going to be very moderate on debt load, and we'll have no burning desire to add stations just for the sake of adding stations. We're going to be very cautious and careful in how we expand."
True to his word, it took three years before Wilson found some properties that made sense to acquire - Triad Broadcasting and its 32 stations, spread out in selected markets around the country - which are officially under his sister radio group Live & Local Broadcasting. Here, Wilson discusses L&L and his new properties ... and where he goes from here.
There has been considerable talk in the industry that more stations acquisitions are in the offing. What made you decide to buy the Triad stations at this time?
I just thought it was a good time to buy at a fair value. The Triad stations were great, independent properties -- and they were for sale. They're good facilities with very good signals, and they all have good, competitive positions in the five markets. Plus they are all well-programmed and are staffed with good people. A major part of the reason I'm buying these stations is that I like the people who worked there -- and the people at Triad Corporate as well.
How long was this deal in the works? Did it come together quickly or was it something you've been eyeing for many months?
I believe we started in August when we did a due diligence trip to the stations. After that our lawyers took it from there.
There are observers who are surprised at how the clusters are spread out across the country, from the Dakotas to West Virginia, Illinois, South Carolina and Mississippi. Did the fact that they were all over the place give you any concern when evaluating the purchase?
No, I never took that into consideration. I was at Citadel and we were in 42 markets, from Maine to Modesto, when I sold out. I don't think the fact that they're not in the same region should have any influence on whether to acquire the stations. Whether they're successful stations is what matters.
Why did you create Live & Local Broadcasting instead of just adding the stations to Alpha Broadcasting?
We just decided to bring in outside investors. Creating Live & Local was done just to facilitate the acquisition.
Were or are there a growing number of outside investors willing to join you in acquiring more stations?
To be honest, the investors here are really longtime friends of the family. Bob Fuller came in with me on this. With that said, I have noticed interest from outside investors in radio has been growing as of late.
Do you feel the economic climate for more station buying is better now than it's been in a while? Or have the prices of stations lowered to more realistic levels?
The price was right for our Triad deal, but it has nothing to do with the economy. We've just got to get through these times, which are still very tough, because we have a total absence of leadership in Washington. I don't think the economy has gotten that much better to change things for us. It's going to be tough sledding for a while, at least until these people wake up and realize that doing the right thing for their country is more important than just doing the right thing for their party.
Was there pressure to get the deal done before the end of the year, what with the fiscal cliff?
The Triad deal was done when both parties agreed to the terms, but you couldn't get anything else done by the end of the year because of what you have to do for the FCC. I still think there's lot of investment money on the sidelines, but it's going to be hard to get off the sidelines because everyone's feeling horrible about the government.
Even with that in mind, are you looking for add stations to the new L&L group?
Yes, we will keep our eyes open. At the same time, we're going to be very careful because this economy is very challenging right now. We're only going to consider the right properties at the right price.
How big do you envision L&L Broadcasting getting?
I can't predict an ideal size for L&L. It really depends on what kind of opportunities we find.
While you expect L&L to grow in size, do you have similar intentions for Alpha Broadcasting as well?
I don't know about that right now. We've made great progress at Alpha. We have a lot of great people there right now; we feel like we still have a lot more growing to do in the market, and that's our first priority.
How has the digital revolution impacted your acquisition process in terms of evaluating the worth of the properties?
Digital provides a great new dimension to our industry. I think we're just at the beginning of it. We have learned lot about digital in a very short time, and we have a lot more to learn. I expect us to learn something about digital from the stations we're buying.
Have you heard about Jerry Lee's "Engaging Commercials" Initiative and if so, what are your impressions?
Jerry Lee is one of my heroes and one of the best operators in the business. He's succeeded with just about everything I've seen. I wholeheartedly agree with the new initiative and am excited to see where he takes this brilliant project. Jerry's influence within the radio and general business industry has been nothing but tremendously successful and motivating for all of us.
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