St. Paul-based Hubbard Broadcasting, Inc., announced Tuesday that it has struck a deal to acquire 10 radio stations for $85.5 million—marking its radio subsidiary’s first expansion into the Seattle and Phoenix markets.
The agreement calls for Hubbard Radio, LLC, to purchase the stations from Sandusky Radio, whose operator, Sandusky Newspapers, will exit the radio business and focus on its 12 newspapers.
The acquisition, which is subject to approval from the Federal Communications Commission, will expand Hubbard’s portfolio to include five new stations in Seattle and five in Phoenix.
Hubbard Radio, which currently has about 600 full-time employees, will also gain 65 to 70 new workers in each of the two markets where it is expanding.
Hubbard Radio President and CEO Bruce Reese said in a statement that the deal will add to the company’s existing 20 stations in the Twin Cities; Chicago; Washington, D.C.; St. Louis; and Cincinnati.
Citing data from media and marketing research firm Arbitron, Hubbard said that the Seattle-Tacoma and Phoenix areas rank as the 13th- and 14th-largest U.S. radio markets, respectively.
“This is an exciting opportunity to expand Hubbard Radio into two top-20 markets,” Hubbard Radio Board Chair Virginia Morris said in a statement. “We have known and respected the Rau/White family, Sandusky’s owners, for many years. We admire what they have accomplished and we are honored that they would agree to sell us these established stations.”
The five Seattle stations Hubbard will acquire are: KIXI-AM 880, 92.5 KQMV-FM, 1150 KKNW-AM, 106.9 KRWM-FM, and 98.9 KLCK-FM.
The Phoenix stations include 100.7 KSLX-FM, 97.9 KUPD-FM, 93.3 KDKB-FM, 1440 KAZG-AM, and 1060 KDUS-AM.
Hubbard Radio is a wholly-owned subsidiary of Hubbard Broadcasting, a family-owned television and radio broadcasting corporation that was founded in 1923 by Stanley E. Hubbard. In 2011, the company struck a $505 million deal to buy 17 radio stations from Bonneville International Corporation.
For an in-depth story about Stanley S. Hubbard, who is credited as being one of satellite TV’s biggest innovators, click here.