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Rest of Colorado Steamboat Cluster goes for $2.0mm

R

Richard Sanders

I realize the seller is taking on some risk here, but Steamboat and Craig are really small markets. It seems rich on a per/pop basis. From a multiple of revenue standpoint, the stations have added ~$150k/year to the cost structure the new owners have to overcome. Must be a strong operator.

radioinsight.com

Blizzard Broadcasting Sells Northwest Colorado Properties

Don Tlapek is selling Blizzard Broadcasting with its seven stations and five translators centered in northwestern Colorado to Jonathan Ingram's
radioinsight.com radioinsight.com
 
Richard Sanders said:
I realize the seller is taking on some risk here, but Steamboat and Craig are really small markets. It seems rich on a per/pop basis. From a multiple of revenue standpoint, the stations have added ~$150k/year to the cost structure the new owners have to overcome. Must be a strong operator.
Click to expand...

This is the key sentence:

The deal is structured with a $30,000 deposit, $270,000 at closing, and $1.7 million in a promissory note with 5% interest over 12 years.
Click to expand...

So he's really only paying $300K. The seller is financing the rest. The buyer is paying less than the current interest rate. He will pay $150K a year for 12 years.

The story doesn't mention real estate. If that's included, he has that as a revenue stream.
 
Given you are spreading those costs over 7 stations in a place that has incredible tourism numbers, that's not a bad deal. To cover the note, adding less than $2,000 in billing per station per month does it.
 
b-turner said:
Given you are spreading those costs over 7 stations in a place that has incredible tourism numbers, that's not a bad deal. To cover the note, adding less than $2,000 in billing per station per month does it.
Click to expand...
Indeed. Ski towns. There's a drought this winter with much reduced snowfall, though, so tourism is down. This may be normal weather variation, or it may be more permanent climatic change. No one knows yet, obviously. So this purchase could either be a risky proposition, or buying on the dip in the local economy.

The very dry winter in the intermountain West is a story that's been mostly overlooked by the media on the coasts.
 


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