Philly Radio: Sam Zell Files For Control of WBEB

Sam Zell

Chicago-based Zell Credit Opportunities Fund has filed with the FCC to take control of  "Jerry Lee LLC", the licensee of WBEB 101.1 FM MoreFM.   In doing so media mogul Sam Zell returns to radio ownserhip for the first time since the disasterous Tribune Media debacle in Chicago.

Zell backed longtime owner/operator Jerry Lee in 2006 when he bought the family of his former partner Dave Kurtz, who died. At the time, station values was hefty and he paid $85.1M for Kurtz' 50.00005% percent of the company. In March 2015, there was a cash payment (financed) of $63 million, plus a note for $22,158,226.

In the filing with the FCC, Zell expands the board from three members, with one designated by the Zell fund, to five members. Zell names the two new members, Nils Larsen and Kathleen Steele. Because this is a change of control of Jerry Lee LLC, it needs to go through the FCC and be approved.  This week's filing indicates that the sale process is well underway, and the Zell Credit Opportunities Fund and backer Methuselah Capital Partners are searching for the next owner.

WBEB 101. FM (14 Kw) Red=Local Coverage Area

WBEB's signal reaches north into New Jersey, especially along Interstate 287 south of Morristown, and in northwestern New Jersey. In those areas WBEB interfers with CBS Radio's Classic Hits WCBS 101.1 FM, in some spots, WBEB's signal actually seems stronger. This is because both stations are full, non-directional Class B operations that are severely short-spaced under a grandfathered FCC rule. WBEB also suffers some co-channel interference with Washington, D.C.'s WWDC-FM southwest of Philadelphia.

Ironically WBEB signed-on as WDVR on this date in 1963.  Read More Now.