tag:blogger.com,1999:blog-3406438944314676533.post3148687807348849649..comments2013-04-14T22:09:29.404-04:00Comments on George Reed's Radio/TV Station Trading Views: "What's it worth?"George Reedhttp://www.blogger.com/profile/05642321040163272523noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-3406438944314676533.post-90202222444745903942009-12-06T16:38:11.570-05:002009-12-06T16:38:11.570-05:00I appreciate the opportunity to add to the convers...I appreciate the opportunity to add to the conversation.<br /><br />GeorgeGeorge Reedhttps://www.blogger.com/profile/05642321040163272523noreply@blogger.comtag:blogger.com,1999:blog-3406438944314676533.post-33037556476275339662009-12-06T12:34:20.678-05:002009-12-06T12:34:20.678-05:00George -
You were very kind to answer my question...George -<br /><br />You were very kind to answer my question and I appreciate it very much. I trust it is okay to share your views on some local blogs here in St. Louis. Needless to say, classical music lovers and the "fine arts community" (St. Louis Symphony Orchestra, etc.) here are absolutely apopletic - if not to say "livid" over the possibility that St. Louis's only classical music station might be converted to Christian contemporary music - as envisioned by the "buyer" Gateway Creative Broadcasting (aka "JOY-FM"). As you point out, the terms of the "sale" (92% seller financing - $16.5M 10-year balloon note) are highly unusual and raising eyebrows here, especially given the fact that the buyer's tax returns indicate that it has lost money for the past 2 years and only had $200,000 on hand as of May 2009.samsonhttps://www.blogger.com/profile/09142579933860534713noreply@blogger.comtag:blogger.com,1999:blog-3406438944314676533.post-40814165413519250532009-12-02T20:11:57.186-05:002009-12-02T20:11:57.186-05:00Though I generally charge "big bucks" fo...Though I generally charge "big bucks" for my opinions on station values, and that I am responding without any direct knowledge as to this station's operating or financial performance, let's look at a major metric - the number of people actually reached by the KFUO signal (the "pop count").<br /><br />BIA reports the 60 dBu pop count for KFUO at 2,603,309. It operates as a class C0 with 100,000watts of power from a height of 1,027'. At the reported $18 million sale price, the cost per pop is $6.91. That is very rich by today's standards (more than twice recent, similar deals).<br /><br />It is worth noting however, that the buyer is only paying $1.5 million cash down at closing, with the seller financing the balance. This could well be a case of "your price, my terms."<br /><br />Ultimately a station (or any other asset) is worth what a willing buyer will pay and a willing seller will accept, neither acting under compulsion.<br /><br />If the seller note is on "market" terms, and the buyer can pay it back in full, it appears that the Lutheran Church made a great sale in a tough environment.George Reedhttps://www.blogger.com/profile/05642321040163272523noreply@blogger.comtag:blogger.com,1999:blog-3406438944314676533.post-47132893705842637932009-12-02T18:05:46.808-05:002009-12-02T18:05:46.808-05:00KFUO - FM (Clayton - Missouri) is under contract t...KFUO - FM (Clayton - Missouri) is under contract to be sold. There is considerable controversy surrounding the "sale". Petitions to Deny have been filed with the FCC. KFUO - FM is the only classical music station i the St. Louis area and has been owned and operated for 61 years by the Lutheran Church.<br /><br />One question is what is this station really worth. What is your opinion?samsonhttps://www.blogger.com/profile/09142579933860534713noreply@blogger.comtag:blogger.com,1999:blog-3406438944314676533.post-43453021603863314882009-11-19T11:50:11.764-05:002009-11-19T11:50:11.764-05:00Steve,
I think that the new pricing model will sp...Steve,<br /><br />I think that the new pricing model will split the revenue streams into two parts: 1) traditional "RF" spot sales and 2) Interactive. The two cash flows will have different multiples, reflective of their growth components. Interactive will likely be valued at a much higher multiple.<br /><br />This is a topic I hope to comment on further in a future blog. Thanks for bringing it up!<br /><br />GeorgeGeorge Reedhttps://www.blogger.com/profile/05642321040163272523noreply@blogger.comtag:blogger.com,1999:blog-3406438944314676533.post-86694508199524036322009-11-18T22:13:16.027-05:002009-11-18T22:13:16.027-05:00George, in reviewing these "buyers market&quo...George, in reviewing these "buyers market" numbers one has to wonder what could make it turn. Do you think that could come about when new investors start to realize that the REAL value of the stick and the pop it reaches is that it's a highly efficient and effective fluid conduit that can deliver ears (and the requisite matching eyeballs) to highly interactive, rich, online website portals that only further enhance and value the overall listening experience? Along with that of the advertiser websites the station partners with? <br /><br />I sure do.Steve Gaineshttps://www.blogger.com/profile/16807619853051467169noreply@blogger.com