Acquisitions

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Acquisitions

5. Acquisitions

We actively seek and explore opportunities for expansion through the acquisition of additional broadcast properties. The consolidated statements of income include the operating results of the acquired stations from their respective dates of acquisition. All acquisitions were accounted for as purchases and, accordingly, the total costs were allocated to the acquired assets and assumed liabilities based on their estimated fair values as of the acquisition dates. The excess of the consideration paid over the estimated fair value of net assets acquired have been recorded as goodwill, which is deductible for tax purposes. The Company accounts for acquisition under the provisions of FASB ASC Topic 805, Business Combinations.

On January 31, 2014, we acquired one FM station (WFIZ-FM) and three FM Translators serving the Ithaca, New York market for approximately $720,000. We financed this transaction through funds generated from operations. Unaudited proforma results of operations for the acquisition of WFIZ-FM is not required, as such information is not material to our financial statements and therefore is not presented.

The preliminary allocation of the purchase price through March 31, 2014 is as follows:

 

	Fair Value
	(in thousands)
Assets Acquired:
Current assets	$	45
Property and equipment		425
Broadcast licenses-Radio segment		174
Other intangibles, deferred costs and investments		3
Fair value of assets acquired		647
Goodwill-Radio segment		73
Total cash consideration	$	720

On February 28, 2014 we acquired an FM translator serving the Jonesboro, Arkansas market for approximately $35,000, of which $7,500 was allocated to broadcast licenses and $27,500 was allocated to goodwill.

Management preliminarily assigned fair values to the acquired property and equipment through a combination of cost and market approaches based upon each specific asset’s replacement cost, with a provision for depreciation, and to the acquired intangibles, primarily an FCC license, based on the Greenfield valuation methodology, a discounted cash flow approach. The Company is still in the process of verifying data and finalizing information related to the valuation, and expects to finalize these matters within the measurement period.