Sunburst stations get new owner

Springfield's radio broadcasting community experienced significant change July 20 when Clear Channel Communications Inc. bought five stations belonging to Sunburst Media.

The stations, KGBX-FM, KGMY-FM, KXUS-FM, KTOZ-FM and KGMY-AM were part of a $57 million agreement signed with Clear Channel. Donna Baker, Sunburst Media general manager, said the deal included eight additional radio stations in two Texas markets.

"This was a difficult decision to make," Baker said. "The industry is changing very rapidly. Sunburst Media was either going to become a much larger company or take advantage of this opportunity to sell. The offer was just too good to refuse."

Although new ownership often means a new way of doing things, Baker said the sale of all assets belonging to the stations, including real estate, to one of the preeminent broadcasting companies in the world, was not likely to produce changes at the Springfield stations.

"Listeners don't need to worry about change. In fact, they can look forward to more of what they've come to expect from our stations," Baker said. "In speaking with Clear Channel people so far, they said they wished every market they bought was in as good a shape as Springfield."

San Antonio, Texas-based Clear Channel Communications Inc. currently owns radio and television stations and outdoor displays in 36 countries.

The company operates 874 radio stations and 19 television stations in the U.S., has equity in 240 radio stations internationally and operates more than 500,000 outdoor advertising displays around the world.

Baker said in a buyout, the biggest concern for employees is the future of jobs. As of now, she said, all contracts have been purchased; all Sunburst Media employees are now Clear Channel employees.

"Change is scary," Baker said. "However, because our industry is in a state of change, consolidation is really the constant. Despite all the change our company has been through, our employees are very optimistic."

Since the transaction requires regulatory approval, Baker said Sunburst Media had already filed the sale with the Federal Communications Commission and the public had been notified through broadcast and print announcements.

"Any transfer of license is subject to FCC approval," Baker said. "However, we don't foresee any problems during the review process."

Clear Channel competitor, Radio 2000, Mo. Inc., which owns two local stations, KZRQ-FM and KHTO-FM, doesn't feel threatened by the acquisition, said General Manager Kirt Edwards Brown.

"The sale could cause some companies to think they need to do things differently," Brown said. "It doesn't with us. As far as counter programming or changes to the way we do business day to day, there will be zero change."

Instead of feeling threatened, Brown said Clear Channel competitors could look at the change in ownership in a different way as an unexpected opportunity.

"Most companies say there isn't going to be change," Brown said. "But there usually is later on. When that happens, their business as usual is not going to be the same routine they're used to. They blink and it gives you an opportunity to remain focused on what you're already doing."

Brown said he isn't surprised that a large company such as Clear Channel Communications would develop an interest in the local radio market, which he described as "very strong."

"The radio market here is as competitive as what you'd find in Kansas City or St. Louis," Brown said. "We've got 17 signals here, not counting what comes in from outside the city from places such as Lebanon and Branson."

Brown said Clear Channel Communications enjoys a "strong reputation."

"Clear Channel has amassed a huge empire of radio stations," Brown said. "But its reputation around the industry is a good one."

Baker said she couldn't think of a better situation for a group of radio stations to be sold under. "We feel very proud to have built the company to its present value for the community and our owners," she said.