NEW YORK — KADY, the bankrupt UHF TV station headquartered in Oxnard, Calif., has landed a buyout offer of $8 million from Paxson Communications.
The deal “is contingent on a court hearing in Santa Barbara later this summer when an auction will take place,” said John Hyde, CEO of Crossroads V Communications and the court-appointed trustee for Riklis Broadcasting, the bankrupt owner of KADY.
Hyde said at least four other media companies — which he declined to identify — might be willing to tender bids higher than Paxson’s $8 million at the auction. A spokesman for Paxson said the company thinks $8 million is a fair price but will be willing to go higher if necessary “because KADY would be the perfect complement to stations we already own in Los Angeles, Sacramento, Fresno and San Francisco.”
Paxson owns, operates or has affiliations with 56 TV stations covering just over 58% of the country. The company’s goal, according to the spokesman, is to keep buying UHF stations until Paxson gets its total up to 70%. That’s the clearance level at which national advertisers generally become interested in buying time in programming on an “unwired network,” which Paxson is eager to create.
KADY, which serves Santa Barbara, Santa Maria and San Luis Obispo, is a UPN affiliate that also runs syndicated programming such as “Star Trek: Deep Space Nine,” “Sally Jessy Raphael,” “Baywatch” and “Jerry Springer.” The station had to cancel its nightly hourlong local-news show last year when it ran out of money and had to declare bankruptcy, Hyde said.