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No Sale Looming, ESPN 98.7 expected to pivot to Music

Theater of My Mind said:
You guys should take your own advice and chill for yourselves until Sunday. People are trying to have a little fun here until the big reveal and some of you are are just being sticks in the (mud). The mods could lock it if they want, but I think most members understand this is not a serious speculation thread at this point. What's the harm of that? Try to have some laughs for once!
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I'd rather be a "stick-in-the-mud" realist with skin in the game instead of an armchair quarterback with little-to-no experience playing fantasy radio.
 
The $50 million is, and has always been the problem. I don't know how Jeff got that number, I'm thinking he just pulled it out of his, well you know, At $30 to 35 million, someone will buy. After all is said and done, it's still a full market FM signal in NYC.
 
RadioGuy1864 said:
The $50 million is, and has always been the problem. I don't know how Jeff got that number, I'm thinking he just pulled it out of his, well you know, At $30 to 35 million, someone will buy. After all is said and done, it's still a full market FM signal in NYC.
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If you go back to the interview he did a year ago, he explains it.

www.insideradio.com

Emmis Sets Course To Go Private, With Plans To Sell New York Radio Stations.

Emmis Corp. is proposing a plan that will, if shareholders approve, see CEO Jeff Smulyan achieve his long-desired goal of taking the company private while setting it up for a
www.insideradio.com www.insideradio.com

It's based on the amount of money he has promised stockholders to take the company private:

In year one, Emmis would pay $6 per share, with that offer rising to $6.50 in year two, with the offer of $7.25 per share coming in year three. Each would be a premium over the roughly $5 per share that Emmis currently trades at.
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The longer it takes, the more he has to pay. BTW as of today Emmis stock is trading at $4.75, which is pretty good for a radio stock
 
RadioGuy1864 said:
The $50 million is, and has always been the problem. I don't know how Jeff got that number, I'm thinking he just pulled it out of his, well you know, At $30 to 35 million, someone will buy. After all is said and done, it's still a full market FM signal in NYC.
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I agree.

The full ESB signals cover a little more than 16,000,000 sets of ears, i’m napkin mathing this from my phone since my computer is not setup right now and I am not at the office.

At 50 million that would be a price per pop of more than $3.1, which is pretty rich in today’s world for a stand alone. NYC sometimes has different dynamics at play though. In decades past, 3 per pop would not have seen so huge.

At 40 million, the price per pop comes down to 2.5 which seems more possible.

35 million is about 2.1 per pop.

I think you can see how he came up with that large round starting number, but I am skeptical there will be any offers for more than 40 and that too might be overly optimistic today. I’m sure after a year of fielding inquiries, they have a good idea how much Interest there is and how soft the market is to their asking price.
 
Ryan Williams said:
I think you can see how he came up with that large round starting number, but I am skeptical there will be any offers for more than 40 and that too might be overly optimistic today. I’m sure after a year of fielding inquiries, they have a good idea how much Interest there is and how soft the market is to their asking price.
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I don't think the problem is the price. I think the problem is the financing. Interest rates are high, adding more debt is the kiss of death, and a lot of buyers would prefer to either have the seller help with financing, or some kind of stock deal. Smulyan can't do either of the last two. Waiting a few months means interest rates may come down. When you look around the media world right now, money is tight and financing is a struggle.
 
When I read the headline, it says "Pivot", & it reminds me of "Friends" 🛋️ . Maybe they will loop The Rembrandts "I'll Be There For You" for a bit before revealing their new temporary format. 😁
 
NYRadioFan22 said:
radioinsight.com

Domain Insight 8/23: Is This What’s Next For 98.7 New York?

When Emmis Communications' LMA to Good Karma Brands to operate 98.7 WEPN-FM New York ends at 11:59pm on August 30,
radioinsight.com radioinsight.com
For those of you that have premium, what's the "breadcrumb"?
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If you are so desperate to know, then pay for the content! It will cost you $5 for a month of RadioInsight paid membership and you can then sleep easy.

radioinsight.com

Membership Checkout – RadioInsight

radioinsight.com radioinsight.com
 
Ryan Williams said:
I agree.

The full ESB signals cover a little more than 16,000,000 sets of ears, i’m napkin mathing this from my phone since my computer is not setup right now and I am not at the office.

At 50 million that would be a price per pop of more than $3.1, which is pretty rich in today’s world for a stand alone. NYC sometimes has different dynamics at play though. In decades past, 3 per pop would not have seen so huge.

At 40 million, the price per pop comes down to 2.5 which seems more possible.

35 million is about 2.1 per pop.

I think you can see how he came up with that large round starting number, but I am skeptical there will be any offers for more than 40 and that too might be overly optimistic today. I’m sure after a year of fielding inquiries, they have a good idea how much Interest there is and how soft the market is to their asking price.
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So if he finds a buyer for $40 million or $35 million but the stockholders continue to demand $50M ("No fair! You promised!"), does he make the deal anyway before the price he can get sinks any lower and find a way to pay the difference to the balking investors out of his own fortune?
 
fybush said:
We're down to what, 48 hours now?

I can't speak for Lance, but it seems to me the speculative silliness is just going to run its course until we get to the end of the line and whatever appears on 98.7, appears.
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Kudo's to the good folks at Emmis Communications for having achieved one of the best non-stunt stunt's in broadcasting with more than 600 responses to this original post alone. And it didn't cost them a dime!
 
fybush said:
We're down to what, 48 hours now?

I can't speak for Lance, but it seems to me the speculative silliness is just going to run its course until we get to the end of the line and whatever appears on 98.7, appears.
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And then people will start on "how long will this go on" and "why ---fill in the blank---and not Alternative?"
 
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