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Debut Broadcasting Corporation, Inc. (OTC BB: DBTB), a media and entertainment company, today announced it has signed multiple agreements that give Debut Broadcasting™ the right to acquire and/or manage two radio stations in Vicksburg, Miss., WBBV-FM and KLSM-FM
Specifically, Debut signed an asset purchase agreement (APA) with Holladay Broadcasting of Louisiana, LLC to acquire the assets of WBBV-FM. Additionally, Debut signed a separate local marketing agreement with Holladay Broadcasting to operate KLSM-FM, which includes a separate option to acquire the station assets as well.
"These agreements give Debut a significant position in the Vicksburg radio market and will allow us to implement our integrated advertising platform and business model to grow the value of the stations," said Steven Ludwig, CEO of Debut Broadcasting. "We have grown from a start-up to an operating group that will have seven radio stations in less than one year and dominates a substantial portion of the Mississippi Delta radio market. Together with our radio syndication arm, Impact Radio Networks™, which has 15 syndicated programs distributed to more than 1,400 affiliates, we are committed to creating high value content for our stations and listeners.
"Through this management model we have found that one regional manager can oversee multiple stations at the same time, which results in a minimum operational cost reduction of 13 to 17 percent. We intend on scaling this growth through the year as we continue to roll out this model, which we are referring to as a ‘Super-Regional Cluster™.’"
Under these agreements with WBBV-FM and KLSM-FM, Debut will control more than 50 percent of the commercial radio station revenue in Vicksburg, while increasing the total number of stations it operates to seven (up from five). This represents a 40 percent increase in stations Debut owns and/or operates.
“This deal makes a lot of sense for both Holladay and Debut since it allows Holladay to focus our resources and energy on stations in larger markets, and lets Debut apply its proven model to smaller rural markets too,” Bob Holladay, managing member of Holladay Broadcasting. “We’re confident Debut will do good things with these stations in Vicksburg.”
Vicksburg is approximately 90 miles south of Greenville, Miss. (location of the first five radio stations Debut acquired). Upon closing, the new Vicksburg stations will instantly increase revenue for Debut as each station is independently cash flow positive today. Through the agreements Debut will more than double both the population reach of its stations and geographic area it covers. Also, the agreements will give the company access to a second base of new advertisers in two additional counties in Mississippi and Louisiana.
In connection with today’s announcement, Debut also announced that it has received a $500,000 working capital loan from California-based Remington Partners to help fund the acquisitions. (Additional details of the loan are available in Debut’s 8-K filing with the U.S. Securities and Exchange Commission.)
Debut will assume operations of both stations on March 16, 2008. The FCC approval for WBBV-FM is expected in approximately three months, and the operational agreement with KLSM-FM allows for a 30-month option to acquire the assets.
When the Vicksburg APAs are completed, Debut also plans to leverage its recently announced partnerships with Boswell Media and MJI Interactive to create the greatest possible advertising opportunities for its advertisers and to increase revenue at the Vicksburg stations as well.
About Debut Broadcasting Corporation, Inc.
A media and entertainment company, Debut Broadcasting Corporation, Inc. (debutbroadcasting.com) supports its clients throughout North America while also improving shareholder value through targeted turnaround opportunities in the southeastern United States. Through its entertainment arm, Impact Radio Networks, Debut sells pre-recorded radio programs and related services to more than 1,400 AM and FM stations in the U.S. and Canada, and reaches more than 45 million listeners per week, making it one of the leading syndicators in the industry. The company also provides marketing, consulting and media buying for its radio broadcast stations. Through its media division, Debut identifies and acquires (or manages) underperforming and undervalued media properties in the U.S., and its first five acquisitions have given Debut radio dominance in the greater Greenville, Mississippi marketplace.
Debut Broadcasting, Impact Radio Networks and Super-Regional Cluster are trademarks of Debut Broadcasting Corporation, Inc. All other trademarks are property of their respective owners.
Forward-Looking Statements
This press release may be deemed to contain forward-looking information. Any forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including statements as to industry trends, future economic performance, anticipated profitability, anticipated revenues and expenses, and products or service line growth, may be significantly and materially impacted by certain risks and uncertainties, including, but not limited to, failure to meet operating objectives or to execute the operating plan, competition, and other economic factors. Additional risks and uncertainties are described in the company’s public filings with the SEC.
Media Contacts At Politis Communications for Debut Broadcasting:
Lindsay Thomson, 801-523-3730 (wk), 973-224-2569 (cell), lthomson[.]politis.com.
Investor Contacts At Politis Communications for Debut Broadcasting:
David Politis, 801-523-3730 (wk), 801-556-8184 (cell), dpolitis[.]politis.com.
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