Buyers Turn Radio Dial to $12,000,000

Two local radio stations that have been Ventura County institutions for decades--KVEN-AM and KHAY-FM--have been sold to a company from Alabama for more than $12 million.

The new owners promise that the folksy blend of local programming, from on-air garage sales to trivia contests, will remain unchanged.

After 30 years of managing and owning the stations, Robert L. Fox and David Loe said the decision to sell was agonizing.

“I have mixed emotions,” said Fox, the 67-year-old chief executive officer. “I love the industry and I love what I am doing. . . . When you get to be this age, you never know what is going to happen. It was a business decision, not an emotional decision.”

Fox, who lives in Malibu, said he wants to stay in broadcasting in some role but made the decision to sell to secure his future retirement.

He and Loe, who lives in Ventura and is president and general manager of the stations, said the offer was hard to refuse.

The radio stations were sold to McDonald Investment Co., which will take ownership of three Oregon stations in addition to the Ventura stations.

KVEN/KHAY were sold for more than twice the amount ever fetched by Ventura County radio stations, according to broker Elliot Evers.

“You’ve got two stations that are extremely well established in format and [with] no real competitors,” said Evers, managing director for Media Venture Partners, a brokerage firm that represented the stations in the sale. “That is a very powerful combination. They are the highest revenue producer by 30% in the county.”

According to the new owners, the $12-million price tag is well worth it.

“We paid for it what we thought it was worth,” said Eric Seltzer, chief executive officer of Bengal Communications Management Co., which has a stake in station ownership and will manage the outfit. “It really is a well-run station. The [radio] industry is a growth industry. We think it is a good place to put our dollars.”

On Monday, many employees were caught off guard when Fox and Loe announced their decision.

“It was a total surprise,” said Bob Adams of the “Dave and Bob Show” on KVEN. “I guess we will just have to wait and see what happens. [Fox and Loe] are good radio people and good business people. They are good people to work for. Hopefully, it will stay the same.”

KHAY morning deejay Charlye Parker said she quickly overcame her initial shock.

“At first I went through a state of panic, but I listened carefully to what Mr. Fox was saying about the new owners and I like their philosophy,” said Parker, who has been with the country music station for six years. “I have so much respect for [Fox and Loe]. This may sound naive, but if Dave Loe says it’s gonna be OK, then it’s going to be OK.”

Joe Schwartz, president of Bengal, will meet with employees Wednesday.

He said he is searching for a new station manager but has no intention of changing programming or employees.

“We bought a very successful operation,” Schwartz said. “We plan on keeping everything the same and building on that.” He added that it will be a challenge to take over and maintain the successful operation.

Both Fox and Loe have extensive backgrounds in radio programming. From 1993 to ‘94, Fox served as chairman of the National Assn. of Broadcasters. In 1993, he was named broadcaster of the year by the California Broadcasters Assn. Loe has served as chairman of the Ventura County Broadcasters Assn.

Schwartz, a New Mexico resident who has managed radio stations nationwide for 22 years, said he is anxious to move to California and work with the stations until he finds a permanent manager.