Discontinued Operations

6 Months Ended

Jun. 30, 2011

Discontinued Operations

Discontinued Operations

5. Discontinued Operations

In June 2011, the Company entered into a definitive agreement to sell its six Great Falls, Montana radio stations to STARadio Corp. ("STARadio"), which is based in Quincy, Illinois for $1.8 million, subject to certain adjustments. While the Company is awaiting approval from the Federal Communications Commission ("FCC") to complete the sale transaction, the Company entered into a Time Brokerage Agreement ("TBA") whereby STARadio will provide programming and related services and will sell the advertising inventory of the Company's six small-market radio stations. The TBA remains in effect until the closing of the sale or termination of the purchase and sale agreement, whichever is earlier.

In accordance with authoritative guidance the Company has reported the results of operations of these small-market stations as discontinued operations in the accompanying unaudited condensed consolidated financial statements. For all reported periods, the Company reclassified to discontinued operations the results of the stations that the Company has entered into a definitive agreement to sell. These stations were previously included in the Company's radio segment.