Re: WBPS sold

[Dan Strassberg <dan.strassberg@worldnet.att.net>]

I've now verified that several Salem-owned stations are technically owned by
other companies. Salem, and Salem stockholders own these other companies
just as they own the company that will own WBPS. For example, this is true
of both of Salem's powerhouse AMs in Seattle, (KGNW Burien-Seattle and KKOL
Seattle).

This form of ownership is quite common in other businesses. A franchisee who
owns a bunch of Burger Kings is likely to own a different corporation for
each restaurant. In the case of restaurants, I can see why an owner might do
this. It makes the owner (actually, makes his assets) somewhat less
accessible in the event of litigation. A plaintiff would have to exhaust the
assets of the corporation that owns the restaurant where he choked on his
sandwich or got burned by the coffee before he could go after the parent
company. Before the plaintiff got around to sueing the parent, the owner
would probably have a chance to move his other assets around and make
himself effectively judgment proof.

I guess if you owned a radio station group and were worried that somebody
might sue you over something you broadcast, it might make sense to have a
multilevel corporate structure. Since Salem does very little that doesn't
make economic sense, that's my guess as to what's going on.

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Dan Strassberg (Note: Address is CASE SENSITIVE!)
ALL _LOWER_ CASE!!!--> dan.strassberg@worldnet.att.net
(617) 558-4205; Fax (617) 928-4205

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