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Wppz 103.9 and wphi 107.9 net worth in today's economy.

S

SP447

Hello everyone, Happy new year!

Can any one in this site with knowledge in Philadelphia radio real estate give an estimate on how much a station like WPPZ 103.9 and WPHI 107.9 be worth in today's economy, also considering the loss of listeners do to the internet technology.

Both stations are not high power stations, Their ratings are bellow 2.0, And a reliable source that worked for them as a top executive told me that their revenue is not well ether. Could these stations still be worth millions or a few millions?
 
SP447 said:
Hello everyone, Happy new year!

Can any one in this site with knowledge in Philadelphia radio real estate give an estimate on how much a station like WPPZ 103.9 and WPHI 107.9 be worth in today's economy, also considering the loss of listeners do to the internet technology.

Both stations are not high power stations, Their ratings are bellow 2.0, And a reliable source that worked for them as a top executive told me that their revenue is not well ether. Could these stations still be worth millions or a few millions?
Click to expand...

There are lots of conditions that affect sale prices such as ownership of real estate, the conditions in leases and such.

But generally, knowing the population covered and current revenues and cash flow will get a ballpark price.

WPPZ covers 3,000,000 with the 60 dbu. It has been billing around $4 million, but as part of a cluster. It likely has limited expenses on its own, so the cash flow might be in the $1.8 million range. While it sold for $20 million in 1996, it is likely worth around $6 to $7 million today.

WPHI bills a little less but covers a few more people. So it is likely worth about the same amount as WPPZ.

This is just guessing based on better known facts. The real price would depend on both willingness to sell and the potential purchaser's due diligence.

The real reason for the lower prices today are the no-growth revenue projections for radio, not the changes in listening. In the 1996 to 2000 years, there was a feeding frenzy of station sales, while today the larger groups are proceeding less aggressively, particularly with limited signals and rimshots.
 
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