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KABC? Wow....a 0.6?!?!?!
- Thread starter Wimmmex
- Start date
I just wonder why you feel the need to repeat and restate the same things over and over again.
It's as if you feel that you're first post was not adequate, or you didn't like the response (or lack of) to your point...so you have to restate, refer back and repeat every time someone doesn't curtsy to what you have to say.
It's what people do in shortwave and ham radio when they feel they are "not getting out"!
Quality posts over quantity.
Posts that "refer back", "as I stated earlier", "check post #xxx", "going back to what I stated"....are useless and redundant.
I'm just responding to your comments. If you brought up some new information, perhaps that would inspire new responses.
Here's what we know: Nobody wants to buy this station. Cumulus doesn't want to donate it or turn it into a foreign language station.
They sold the tower land for a ton of money. They moved the station into the offices of their co-owned Westwood One. So they have minimal costs
It doesn't matter what a GM said a number of years back. They don't need a 2 share any more, which is good, because they won't get a 2 share with this station. Circumstances have changed. The tower was moved, signal was degraded, and profit was made from the former tower land.
But they have not been even a 1 share station for several years. 0.6 is well within the range of what they have been getting... neither the high nor the low end.
As someone else pointed out out to you, must you respond to every post, every topic every comment simply to repeat things you've said before? Again, quality, over quantity. 28,000 posts indicates a problem, and an inefficiency.
What value would you put on this station/licence/property now David?
What do you think it could pull in in the current marketplace?
No one is forcing you to read any of my posts. There is an "ignore" function. Learn how to use it.
I don't respond to every post, just the ones that interest me. And I'm not anywhere close to the top poster on this board.
uMMM...ok.
I've been here on this and the previous incarnation of the site for ~~~ 20 years and have never felt the need to use the 'ignore' option, frankly I don't even know it was there haha. And you're right no one is forced to read the posts and you stated the case initially and that should be enough IMHO
There are probably more threads and posts about this one station than there are likely actual listeners.
What probably pays the bills for 790 these days: Vitamins K, A, B and C, plus any other sort of program length shill for various products of varying efficacy.
HAHAHAHA Well done, Sir!
The prices have been set by recent sales of KFWB, KTYM and KHJ. I would say in the $7 to $9 million range.
To think that earlier in this century the X Band station on 1650 went for $35 million!
That would mean that KABC, as an asset, has to perform with around $400k in profit. (or $30k-ish /month.)
You mentioned some ethnic formats that might work for the KABC facility.
Could you imagine any ethnic format throwing off that kind of profit?
(I know you have a good understanding of those formats that most of us don't.)
That would be a basic 4-5% return on the investment. If an investment can't do that, it does not substantiate itself as a performing asset, no?
Stations don't look at asset value as much as they do things like EBITDA (cash flow before interest, taxes, nondepreciating and amortization), power ratio and the like.
One of the top 10 LA stations is cash flowing from perhaps $10 million to $30 million.
Ethnic stations like KWKW are probably tossing off $2 to $3 million.
The inferior facilities, if well run, can be in the $750 thousand to $1.2 million range.
Obviously, stations that are badly run will not do as well. KABC is not necessarily badly run... it is just a station trying to do something that its band and its format are incapable of delivering. As has been said, it's likely it has stayed in the format too long just to clear WW1 shows... but in the end, if it contributes no reach to campaigns, there is no value in it at all.
From the perspective of an investor, I would want to know the rate of return on my investment, and/or the growth in the asset.
And pitting that against the risk(s).
ROI is not a common metric in radio, although it is used internally to evaluate elective or non-essential capital expenditures. And in multi-station situations... going back to the 50's and 60's when that meant at most 14 radio stations... individual station performance was no generally revealed unless it was stellar and the management wanted to show how well a particular market move had been.
In the case of consolidation, there is no asset value for individual stations such as in this case where Citadel took over the ABC stations in a multi-station deal. There was no per-station value assigned.
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However, even though the station has a small share of the LA market, as compared to other radio stations, it's still a pretty sellable number. And the thing about talk is that all of those listeners aren't attracted by music, but by personality. The station can merchandise those personalities to their audience, whereas they can't merchandise music. So that's what KABC does. They have sponsored remotes around town where their personalities appear with celebrity guests. Venders and sponsors are there, making personal & direct contact with listeners in ways they can't with on-air advertising. So when evaluating the value of an asset, look beyond the standard metric of ratings. That's something we also see with sports stations. If they own the radio rights of a team, it gives them exclusive access to other things from which they can make money. The radio signal is just one aspect of an integrated media system, if it's run that way. If you're a station that has bad ratings, you find something else to sell besides the ratings, and from what I can see, that's what they're doing at KABC. If someone came up to them and made them an offer they can't refuse, they'd be stupid to ignore it. But to say that bad ratings equal bad revenues misses the rest of the picture.
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