In a high-stakes bidding war between two Christian music broadcasters over who will own the license to KDHX 88.1 FM, Des Peres-based JOY FM came out on top.
Gateway Creative Broadcasting Inc., which owns stations 99.1 JOY FM and BOOST Radio in the St. Louis market, successfully placed an $8.75 million bid to buy the community radio station’s license, broadcast tower and remaining assets.
K-LOVE Inc., based in Franklin, Tennessee, came in second with a bid of $8.5 million.
“It went very smoothly,” said KDHX bankruptcy lawyer Robert E. Eggmann of the auction in U.S. bankruptcy court held Friday.
LOVE of KDHX, a coalition of business, civic, music, arts and other community supporters — including former volunteer DJs — had spent months working to develop an alternative to the proposed sale to Christian broadcasters.
“LOVE of KDHX was less of a bidder and more a proponent of a plan, but unfortunately they couldn’t come up with the funding for that idea,” Eggmann said.
The volunteer group plans to object to the sale. Other parties have until 5 p.m. Tuesday to file objections.
“We think we have very good and persuasive arguments for why this sale should not happen,” said Roy Kasten, a member of LOVE of KDHX and a former volunteer DJ at the radio station. “We look forward to making those arguments in court and more importantly we remain committed to a community plan to reorganize KDHX as a community FM radio station that serves the St. Louis metro region and beyond.”
While Gateway Creative Broadcasting was the winning bidder, the sale still needs court approval to go through. “Regardless of whether there were any objections, there will be a full-blown evidentiary hearing on whether this sale is in the best interest of the station,” Eggmann said.
The community radio station has been in legal limbo for months. In March, KDHX filed for bankruptcy protection.
KDHX board President Gary Pierson heralded Friday’s auction as a positive step.
“The board and management of KDHX continues to be focused on our mission of building community through media,” he said. “Today’s auction process helps us take another step towards securing the financial future of the organization. If the sale is approved and our plan moves forward, many unique community voices will once again be sharing their musical inspirations on the St. Louis airwaves for years to come.”
Both bidders had agreed to fund for KDHX a high-definition radio station and an internet station.
If the court approves the sale at a hearing on June 9, Gateway would start the process of obtaining the FCC license. “That process could take six months, hopefully it’s shorter, or it could be even longer,” Eggmann said.
