Meruelo to pay $15 million for L.A.’s KDAY

Story by Inside Radio

Two previous deals to sell the Los Angeles urban “K-Day” combo of KDAY, Redondo Beach (93.5) and KDEY-FM, Ontario (93.5) for $35 million and $19.5 million never got to the finish line. This time the price tag is $15 million, and Meruelo Media is set to take over operations next week.

The Spanish-language television broadcaster will begin a local marketing agreement on New Year’s Day. CEO Alex Meruelo has pledged to keep the urban format intact saying he wants to “re-energize” the L.A. “cultural institution.” KDAY has been airing an urban format since the 1980s and it’s said to have been the first commercial radio station to air hip-hop. The two FMs become sisters to its L.A. television station “Mundo Fox 22” KWHY-TV. A closing is expected in the second quarter.

Seller Magic Broadcasting earlier this year struck a deal to sell the stations to Chinese-language broadcaster Phoenix New Media, but that sale fell through. KDAY/KDEY have become high-profile benchmarks of how far station valuations have fallen in recent years. Magic paid $120 million for the two FMs in 2005.