I've been out of the business a long time but I remember when stations sold for multiples of cash flow and tangible assets were of minimal importance. So rather than mainly expenses I would think the station has sales as well as expenses and so cash flow. We can guess at the amount based on the purchase price.
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WABC Sold?
- Thread starter mets18
- Start date
That multiple has been falling. This is one of the lowest rated stations in NY. Cash flow might be around $6 million.
When you're talking AM radio, the real estate is the biggest asset. TTBOMK there's no real estate in the sale, and Disney has the trademark on the call letters.
Here is a question I would love the answer too!!!! WHY THE HELL COULDN'T CHEAP ASS CUMULUS SELL BOTH WABC AND WPLJ TO RED APPLE MEDIA!!!!????? INSTEAD OF MURDERING WPLJ TO EMF!!!! REALLY!!!??? See this is what I have a big problem with!!! This drives me crazy!!! THIS IS A PERFECT EXAMPLE OF WHY THESE COMPANIES BUY UP TOO MANY STATIONS THEY SOMEHOW CAN'T AFFORD!! I just don't understand it.
Ben Bradlee was the authoritative, respected “face” of the Wash. Post, irrespective of his personal political leaning. As I stated, Jeff Bezos is no Ben Bradlee.
They got a better deal from EMF. My bet is if Red Apple bought PLJ, he'd put conservative talk on FM.
Which would you prefer?
This was not a case of buying stations they could not afford. It is a case of the post-consolidation reality that shows that groups with small clusters or stand-alone stations can't compete in the top tier of radio operations in a market any more.
Cumulus emerged from bankruptcy with good cash flow. Now they want to get rid of inefficient stand-alones or small clusters, allowing the reduction of debt and improving the profitability of the company.
It's likely that Red Apple did not want the FM... it appears that the owner is attracted to the prospect of moving his own show from WNYM and that might indicate that his only interest was in the AM.
A stand-alone FM in NYC competing in the general market would have a difficult time.
In any case, I suspect that WPLJ was already sold when Red Apple started thinking about buying the AM... otherwise, the deals would have happened simultaneously.
Agreed, what we have here is the stereotypical rich billionaire who thinks the world cares about his opinion so he bought himself a big megaphone. Like-minded bloviators should be thrilled, the owner probably won't care if the audience is in the advertising demo, or the station turns a big profit, as long as it doesn't bleed too much cash, right? Small price to pay for the perceived influence he'll get out of it.
Haha, good one. His stores are filthy, just like the station will be.
While this is hardly a radio subject I do need to mention something...
For many years I was head of the radio division of a supermarket company. In the management meetings I learned a lot about markets.
One of them is that the smaller the store, the harder it is to keep it clean. Small stores tend to reduce the aisle width, and pack the shelves differently. The result is more traffic per square foot of aisle space. That makes it harder to do maintenance during business hours, including restocking. In fact, a small store may have an even smaller stockroom, meaning that some things will run out. Small spaces mean more bumping and more accidents such as breakage and spillage.
When you try to put 40,000 square feet of product in 8,000 square feet, it is going to be very hard to keep it neat, particularly on Thursday, Friday and Saturday.
It's not just about whether it's neat. Here...
https://patch.com/new-york/bed-stuy/worst-grocery-store-nyc
I'm not sure if you know this, but making up childish nicknames for things and continuously repeating them doesn't bolster an argument. That said, the response completely ignores the original point. Like or dislike his approach, he's running it as a real business, not as a hobby that may or may not actually make any money.
That's an interesting question. My understanding is that they have the right to protect their trademark, and if the radio station does something that might harm the image of the TV station, they might speak up about it. But I don't know if there is a "right of refusal" in the sale agreement.
That's something for the new owner to consider: Does he want to continue to pay for the right to use these letters? He seems to be aware of the heritage, and that's one of the attractions to buying this particular station. He seems to understand the value of established brand names.
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He sounds like the sort of station owner who might slap his own initials on the station, although the thought of being the wealthy ultraconservative who owns New York City's heritage conservative talk station might push him toward honoring the WABC legacy by keeping the call, if he can. Although ABC now is associated more with television -- and a mainstream, non-conservative television network, at that.
Bezos is running it as his personal left-wing stooge sheet. He has all the money he needs, this is all about gaining raw political power. The WP is unreadable unless you are a a liberal Democrat. Even their "conservative" columnist hates Trump and the Republican Party.
ABC Radio exist mainly as a Podcast outlet for Disney in areas where ABC does not have a radio affiliation. But I don't know if Disney can argue that though over its call letters given that WABC Radio has been through 3 owners since Disney sold the Former ABC Radio affiliates back in 2006-2007.
https://www.livexlive.com/station/abc-news
I read his bio, and it said he originally ran the Red Apple grocery chain, until he bought Sloans and Gristedes. The minute he got his hands on those names, he changed his Red Apple stores to Gristedes. That's why I say he knows the value of established brand names.
Interesting interview with the new owner:
https://radioink.com/2019/06/27/new-owner-of-wabc-looks-to-put-it-back-on-top/
Says he has no plans to change anything. He will keep his radio show at WNYM. Looking to buy more stations.
https://radioink.com/2019/06/27/new-owner-of-wabc-looks-to-put-it-back-on-top/
Says he has no plans to change anything. He will keep his radio show at WNYM. Looking to buy more stations.
WABC already has an identity as a talk station. It's been that way for over 35 years. If he plans to keep running it as a talk station, there's no need to re-brand it for as long as he has permission to use the identity.
Because when the time comes to sell, you sell for the best price to a willing and able buyer.
You do not get to choose the ethnicity, religion or behavior of the people who buy your house.
It's something that happens when you are worried people didn't hear you, pay attention or respond the first time to what someone thinks is a "witticism".
Indirectly you have hit on the big issue: the terms of the permission to use the WABC call letters and the assignability of that permission to future owners. There also may be some conditions to use, such as acceptable formats or content.
If Cumulus can not assign the permission to the new owner, then the calls will change. If permission has to be renegotiated, then it's a toss-up.
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