2 FMs sold in Alexandria, LA

As reported today in the "trades," Kevin Wagner's URBan Radio (d/b/a Trinity Broadcasting and FM Broadcasting) has sold its two FM stations in the Alexandria, LA market. “B102 Jamz” KBCE programs urban and is a Class C3 licensed to Boyce. Urban AC “Mix 93” KMXH is an A licensed to Alexandria. The buyer of both stations is JWBP Broadcasting, which is 65% Jerry Williams and 35% a family group known as Beaird Properties.

I represented the seller and Jerry Proctor represented the buyer. Congratulations to all parties involved!

George
Media Services Group

Setting up appointments for the NAB Show

The NAB Show in Las Vegas is just around the corner. Media Services Group rolls into town on Saturday, April 9, and will hold court through Wednesday morning (April 13).

Our suite will once again be at the Encore. If you are interested in having a confidential discussion about station values and the trading marketplace, please get in touch. Click to email.

George
Media Services Group

New White Paper: "Buying Your First Radio Station"

Media Services Group has released a White Paper on "Buying Your First Radio Station." This covers the basics.

Click HERE to download (email registration required).

George
Media Services Group

New York Times article: Static on the Citadel Radio Dial

The New York Times published a piece over the weekend on the Citadel/Cumulus deal:

"EXECUTIVES who run public companies, and the directors who oversee them, are supposed to operate with the shareholders’ best interests at heart. If a capitalist society like ours is to function, that has to be a bedrock principle."

Check it out HERE.

George
Media Services Group

Media Services Group engaged to sell Atlantic City stations

Press Release from January 20, 2011

Atlantic Broadcasting of Linwood NJ Limited Liability Company announced today that Media Services Group has been retained by the company to sell its five radio stations and related assets in the Atlantic City, NJ market. The selection of Media Services Group has been approved by the United States Bankruptcy Court, District of New Jersey.

Atlantic Broadcasting voluntary filed for Chapter 11 bankruptcy on December 20, 2010 seeking to reorganize through the sale of its broadcast assets.. The radio stations involved in the sale include:

WTKU-FM 98.3 Kool 98.3 Classic Hits
WMGM-FM 103.7 The Shark 103.7 Classic Rock
WBSS-AM 1490 La Fiesta Spanish
WOND-AM 1400 News/Talk 1400 News/Talk
WWAC-FM 102.7 Wild 102.7 Top 40

In addition, the company owns three parcels of real estate, including two tower sites and an 11,670 square foot building located in Linwood, NJ.

Media Services Group’s Tom McKinley in the metro New York office and George Reed in the firm’s Florida office will handle the brokerage duties. The stations are being put on the market immediately. An online due diligence data room has already been organized and is available to qualified prospective buyers. Interested parties should contact Media Services Group.

For More Information:

R. Thomas McKinley, Director
Media Services Group, Inc.
973-631-6612 Office
415-710-5350 Cell
RTMcK2515@aol.com

George R. Reed
Media Services Group, Inc.
904- 285-3239 Office
904- 631-7093 Cell
George@MediaServicesGroup.com

About Media Services Group

Media Services Group is a leading national media brokerage firm specializing in radio/TV stations, their digital assets, and communications towers. The firm matches broadcast station and tower buyers and sellers with a middle market focus. The company’s valuation practice is among the top in the industry.

Media Services Group also assists broadcast lenders with troubled loans, including providing receivership and trustee services. We have served the industry, its investors and lenders for over 20 years.


George
Media Services Group

From David Oxenford's blog: Start Planning Broadcast Transactions Around The License Renewal Processing Periods

David Oxenford penned a good article on considering the processing time for license renewal applications in connection with station sales. This becomes an issue every time the renewal process begins. If you're thinking about selling or buying a station, check it out: HERE

Thanks to Bob Heymann for bringing it to my attention!

George
Media Services Group

Chart of U. S. Frequency Allocations

I found this interesting. It is a color coded chart of all U. S. frequency allocations from the Department of Commerce. Click HERE to check it out.

George
Media Services Group

2011 Broadcasters' Calendar available from Pillsbury

Here is a good resource for broadcast station owners and managers. The
2011 Broadcasters' Calendar is available from Pillsbury. Click HERE. Thanks to the Nevada Broadcasters for the heads up!

George
Media Services Group

Lew Dickey removed from Farid's Christmas card list

The news today that Citadel has rejected two offers from Lew's Cumulus Media certainly breaths some new life into what has been a very slow station trading year. It also represents the opening act to what will be a fascinating show.

Lew Dickey has plenty of fans as well as detractors. And I’m squarely in the camp of the former. Yes, he’s been a great customer over the years (he bought over a hundred stations through Media Services Group), but there is more to it than that.

Lew is a broadcaster. He was literally raised in the business. He has seen it from all sides (and is probably one of the best researchers ever to serve the industry -- pre-Cumulus). He knows how to run a radio station and is as comfortable doing so in Atlanta sized markets as he is in Savannah sized markets.

And he’s smart. Not just well educated (B.A. from Stanford and MBA from Harvard), but radio street-smart. If he succeeds in his effort to acquire Citadel, he will know what to do with it and how best to integrate the two very different cultures.

I believe that Lew has had his eye on Citadel for a long time. And now that it has emerged from bankruptcy court with a squeaky clean balance sheet, and station prices are at a decade’s low level, what better time?

Plus, Lew never took my stock in his company to zero.

The drama will be fun to watch. If Lew is successful, look for some new station acquisition opportunities in the new year. For one thing, the deal will likely require some spin-offs (in markets where both companies compete). For another, transactions like this have a way of fostering new, unrelated deals. They establish a pricing comparable. Potential buyers and sellers will pay close attention to the multiple on the deal.

Last but not least, Merry Christmas and Happy Holidays to all! Let’s have a prosperous 2011.

George
Media Services Group

Two more transactions announced

Media Services Group has announced a couple of transactions. Though small deals, they provide evidence that the deal market is slowly but surely coming back to life.

1) Fort Wayne, IN Area FM Station Is Sold

Godwin-Starkes Property Management, LLC, an Indiana limited liability company has agreed to purchase the assets of WNUY-FM licensed to Bluffton, IN from Independence Media of Indiana, LLC, a Delaware limited liability company and IM IN Licenses, LLC, an Delaware limited liability company. Godwin-Starkes Property Management, LLC through an affiliated company, owns WQSW-LP Fort Wayne, IN.

The purchase price is $350,000.

Bob Heymann of the Chicago office of Media Services Group and Stephan Sloan of
Media Services Group’s Providence office served as the exclusive brokers representing the seller in this transaction.

2) Tennessee Temple University has agreed to purchase the assets of Radio Station WUUS (AM), licensed to Rossville, GA (serving Chattanooga, Tennessee), from 3 Daughters Media, Inc. for $175,000.

Eddie Esserman of Media Services Group’s St. Simons Island, GA, office represented Tennessee Temple University in this transaction.

Both transactions are subject to FCC approval.

Congratulations to Bob, Stephan and Eddie on getting deals done in a tough financing environment!

George
Media Services Group

Great article in RBR on the FCC assignment and transfer process

Today's RBR ran a great article on the FCC transaction approval process. Erwin Krasnow, preeminent FCC attorney, interviewed the FCC's Taft Snowdon, Supervisory Attorney, Audio Division, Media Bureau. Thanks to my partner Bob Heymann for calling it to my attention.

Click HERE for the link.

George
Media Services Group

Two more station transactions close

Although the pace of station trading remains slow, Media Services Group closed two more transactions last week.

M&M Broadcasters closed on the purchase of KRHC AM/KBEY FM, Burnet;
KHLE FM, Kempner; and KHHG FM, Hamilton; all Texas, from Munbilla Broadcasting Properties, LTD.

Bill Whitley of the Dallas office of Media Services Group served as the exclusive broker for this transaction.

Big Toe Communications, LLC completed the acquisition of the assets of radio stations WHPI-FM, Glasford, IL; WPIA-FM, Eureka, IL; WZPN-FM, Farmington, IL and
WWCT-FM, Bartonville, IL, from Independence Media Holdings, LLC.

Stephan Sloan of Media Services Group’s Providence office represented the seller in this transaction.

Well done Bill and Steph!

George
Media Services Group

New white paper: Financing Broadcast Properties 101

If you are looking for a primer on the basics of financing a radio or television station purchase, please check out our white paper: "Financing Broadcast Properties 101"

You can click here for the free download (email registration required): Financing Broadcast Properties 101

George
Media Services Group

BBN Closes Tennessee FM

Bible Broadcasting Network, Inc. has closed on its acquisition of WDYN-FM, Chattanooga, TN, from Tennessee Temple University.

Eddie Esserman of Media Services Group represented Tennessee Temple University in this transaction.

Congratulations Eddie!

George
Media Services Group

Radio station owners fall into two camps: Pick one!

The last two years in the radio business have not exactly been a walk in the park. Defaults, bankruptcies and receiverships have been rampant. A ton of equity vaporized in a sea of debt. It has not been a good time for station owners, especially those "faint of heart" or with highly leveraged balance sheets.

All of this has precipitated a lot of gloom and doom talk on Wall Street, in the industry trade publications, and in the convention hallways, suites, and bars.

From my perch, it seems that station owners fall into one of two broad categories:

1) Those who believe that radio's best days are behind it and that the end is near, or

2) Those who believe that the current low station prices present the buying opportunity of a lifetime. The business will recover and even thrive in the new environment.

Let's look a little more closely at each assumption:

1) Radio is dead. Long live Radio!

• Old media is over. New media wins.
• Radio has lost the kids.
• We're too little, too late to the digital party.
• Who needs a transmitter when you can stream?
• There are too many "cooler" new media options.
• Who buys radios when you can buy a smartphone or iPad for your information and entertainment?
• The Internet will soon occupy the dashboard.

2) Shopping at the bargain rack!

• Radio is still a high cash flow business.
• We can and will compete in the digital world.
• Fortunes were made in the last major downturn (think Lowry Mays).
• Regulatory relief may be the catalyst for reigniting the business (think elimination of the subcaps).
• Newspapers have lost their strangle-hold on retail business.
• There is no better megaphone for generating web traffic than radio.
• Radio still drives customers on Main Street.
• HD holds long-term promise.
• In the face of competition, radio has maintained its ubiquitous reach.

Conclusion

Pick a camp. Now.

Yeah, this sounds self-serving (after all, I am a broker). But, it is now time to place your bet. Here's my logic:

If you're in the "Radio is Dead" camp, the best thing you can do is cut your losses. With station values headed south, your station(s) will never be worth more than today's valuation. If you're under water with your bank, hand 'em the keys. Get out now while you can.

If you believe that you can buy good radio businesses from the bargain rack, then step up. You will buy solid businesses at historic lows. The seller's pain will be your gain. Get on board before prices take off. Build great clusters and hire from the incredible talent pool stranded on the beach. There is no better time than now.


It is time to select the scenario you believe will pan out in radio's future. To do otherwise is to leave your personal future to fate. Hold 'em or fold 'em. One school will be right. The other . . .

Those are my thoughts. What are yours?

George
Media Services Group

Inside Radio (http://www.insideradio.com/) published a story called "Digital radio advocates spread the gospel to the wider internet world" this morning. They included a link to a report prepared by the Interactive Advertising Bureau (IAB). If you're in the streaming audio business, it is an important piece (and may be useful to your sales departments).

Click HERE to get the report.

George
Media Services Group

Thoughts from the 2010 Radio Show

I'd like to share a few thoughts from last week's Radio Show. Though I have heard that overall attendance was up, there were fewer station owners on hand than usual. However, the FCC lawyers turned out in force, playing with a home court advantage.

The meeting was decidedly more upbeat than the last two years' shows (though that is not saying much considering the gloom and doom we've been through). Station revenues are up year-over-year and it has been a long time since we could make that claim.

On the station trading front, our suite activity was robust. There still aren't a lot of deals getting done, but at least the talking has resumed (after eighteen months of virtual silence). The missing ingredient continues to be bank financing. Despite renewed optimism about the prospects for the radio industry, there was little optimism that the bankers were returning any time soon. Trading will remain lackluster until the banks embrace the industry again.

Let's hope that next year's Radio Show in Chicago is a time for celebration.

George
Media Services Group

FM Auction 91 List

Click HERE for the FCC Auction 91 list.

George
Media Services Group

A climb up the tallest tower

This video doesn't really have much to do with the theme of this blog, but anyone who has been involved with broadcast towers will find it interesting. In my case, with a fear of heights, it was downright terrifying. Thanks to Eddie Esserman for sending it to me.

A guy climbs a 1,768' tower (video): http://video.yahoo.com/watch/8244494?fr=yvmtf

George
Media Services Group

When to Hire a CFO

Good article from Anne Field (Business Insider) on "When to Hire a CFO":

https://www247.americanexpress.com/MoblOpenWeb/articles.do?TargetID=when-to-hire-a-cfo-anne-field&showOnOne=true

George
Media Services Group

Robert Prather of Gray Television talks with B&C

B&C interview with Robert Prather: http://www.broadcastingcable.com/article/457293-Prather_Calls_for_Unity_on_Mobile_DTV.php

George
Media Services Group

Who says radio isn't fun any more?

Who says radio isn't fun an more? Here is WDHA (Morristown, NJ) market manager Nancy McKinley.

Rumor has it that an NTR Revenu line item has been added to her 2011 budget: Crop Dusting

George
Media Services Group

More news-talkers moving to FM

Last week's announcement that heritage, big signal, Atlanta News-Talker WSB-AM (750 kHz) was adding an FM simulcast is yet another benchmark in the growing trend of talkers migrating to the FM band. It follows similar moves by KSL in Salt Lake City and KCBS in San Francisco. While these appear to be smart moves, I believe that they sound a large warning signal for AM station values in the future.

A strong case could be made that the big AM News-Talkers like WSB have kept the AM band alive. News-Talk listeners have been content to seek out their programming on the AM band. If all of the major AMs throw in the towel for the FM band, who will be listening to AM? My guess is that AM will be dominated by niche players in the future: foreign language, religious, and other specialty programming.

Station prices are based on supply and demand. It looks like AM supply will be increasing at the same time that demand is decreasing.

Those are my thoughts. What are yours?

George
Media Services Group

Inc. magazine's business plan presentation

If you are working on a business plan (hopefully for station acquisitions!), Inc. magazine has a good resource: Business Plan Presentation. It is a basic PowerPoint template which may serve you well as a starting point for your presentation. At worst, it would serve as an antidote for writer's block.

George
Media Services Group

Have your tried mind mapping? (Article from Inc. magazine)

Here is a good article from Inc. magazine on mind mapping. I have found the concept to be very useful for project management; there are a lot of ways for entrepreneurs to put it to effective use.

I use software from Mindjet (MindManager) and can recommend it highly. For project management, ResultsManager is a great add-in.

George
Media Services Group