Monday, July 8, 2013

Another FAQ: What is “stick” value?

Q:  "What is “stick” value?"

A:  “Stick” value refers to the value of the station absent any revenue or cash flow. Think “franchise value” of the facility.

It is often calculated by the population covered by the station’s signal. We typically use the 60 dBu contour for FM stations, and the 2.0 mVm daytime contour for the AM facilities.

Media Services Group

Monday, July 1, 2013

Tribune Grabs Local TV Group for $2.7 B

Tribune Grabs Local TV Group for $2.7 B: Gannett's acquisition of Belo didn't last long as deal of the year, as ...

Another FAQ: How long does the sale process take?

Q:  "How long does the station sale process take?"

A:  Often, preparing the due diligence information prior to the marketing of the station(s) is one of the most time-consuming steps of a sale.
Most station marketing agreements with media brokers call for a duration of six to eighteen months, with twelve months being typical.
Time on the market varies. Like real estate, stations that are priced more closely to their Fair Market Value tend to sell the quickest.

The FCC approval process generally takes 60-90 days, with the Staff approval becoming “final” in an additional 40 days.  Any objections can delay the process.

Media Services Group