Radio Disney Inc.'s sale of its Detroit station has run into static because a buyer terminated its offer after entering the contract stage, according to a source close to the matter.
The buyer, a local broadcasting company that had made a verbal offer and reached the contract stage with the Walt Disney Co. (DIS) unit, decided not to pursue Detroit station WFDF and is instead looking to purchase an AM station from CBS Radio Inc., the source said.
Watch the video below for more on Disney's attempt to sell its Detroit radio station:
The buyer is seeking a station with a stronger signal and coverage than what WFDF can provide, the person said, declining to elaborate further.
Radio Disney announced in an internal memo in August that it is divesting 23 of its 24 local radio stations so it can focus on digital broadcasting. The stations up for sale include 22 AM stations and one FM station. Bill Schutz of media brokerage firm Schutz & Co. is leading the sale process for Radio Disney, through which the company is selling its assets individually or in small groups.
The Deal reported in late October that Radio Disney was near a deal to sell its Detroit and Cleveland stations to two different local broadcasting groups, with Detroit fetching a price tag between $2 million to $3.5 million and Cleveland attracting slightly under $1 million. Sources said last month that the discussion for the Detroit station lasted a little more than a week and that negotiations for Cleveland station WWMK took about a month.