Ooooo-Kay. The Nurse and I were off on our $15m value for 12~Sixty. Comes news from el Lay that KMPC (15~Forty with a signal only a tower salesman could love) has sold for $33m, making the price paid for 6~Ten look like chump change. TMISU should hold out for at least $25m for 12~Sixty. YIKES! What would Howard Kester say?
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12~Sixty's Value
- Thread starter DrAkbar
- Start date
You sound like a real estate broker. Just because something sells somewhere else in California does not translate into what your house will sell for in a different part of the state. It all depends upon the buyers who are willing and able to pay, whether it's a house or a radio station.
You can write appraisals all day and in the end the market price is the price it sells for.
Now KFRC has been considered as a "comp" sale (comparative in the real estate world) and when 610 KFRC exhanged for $ 30,000,000.00 the owners of KOIT-AM cheered thinking their faciity was worth $ 20,000,000.00. There were no takers at that price.
In regard to KMPC that is an existing business the buyer gets. KOIT is a simulcast and does not include any business.
Who are you refereing to as TMISU?
In this Bonneville/Entercom exhange deal I always thought that Bonneville got the better deal with the stations they received. Who knows, Entercom may be smiling thinking they came out better.
How about some thoughts on which company got the better deal in this exhange, Entercom with the three FM stations the received in SF or Bonneville who received five stations inlcuding Seattle?
Nesperson
You can write appraisals all day and in the end the market price is the price it sells for.
Now KFRC has been considered as a "comp" sale (comparative in the real estate world) and when 610 KFRC exhanged for $ 30,000,000.00 the owners of KOIT-AM cheered thinking their faciity was worth $ 20,000,000.00. There were no takers at that price.
In regard to KMPC that is an existing business the buyer gets. KOIT is a simulcast and does not include any business.
Who are you refereing to as TMISU?
In this Bonneville/Entercom exhange deal I always thought that Bonneville got the better deal with the stations they received. Who knows, Entercom may be smiling thinking they came out better.
How about some thoughts on which company got the better deal in this exhange, Entercom with the three FM stations the received in SF or Bonneville who received five stations inlcuding Seattle?
Nesperson
newsperson said:
TMISU = The Men in Secret Underwear, ie the LDS Church/Bonneville
As to KMPC, wasn't the asking price $24M? Yes, it does include a business, but not much of one. KXMX/Anaheim is listed at $26M, bills around $3M a year with few expenses (even if it wasn't run out of the Salem cluster) and has 20kW day and a measly 1.3kW at night. Sure, it's 1190, somewhat better than 1540, but no KFI or KLAC. Sooo... does that mean the $24M didn't include land?
KJCB said:
Like 1260, 1190 in Anaheim has a Top 40 history as well as it used to be KEZY. A lot of great deejays worked there. Usually before getting an LA gig, or after leaving one. Rick Carroll was one of KEZY's more famous PD's... I might add that the current KXMX is pretty much brokered out and occupies one small mostly empty studio at the Salem cluster in Glendale. So it may actually have only slightly more to offer than 1260. Anyone buying these stations would need to build studios and offices before taking ownership...
calguy said:
You're right. And that's the point. It doesn't take much to operate the foreign language brokered hole that is 1190; do the weekday shows even need a board op? At $600/hr, a mostly sold out station makes a nice amount of money. There wouldn't be much to build seeing that the station itself is already billing with no staff of its own. Rent 1,500 sq ft in Culver City or Inglewood or Torrance, hire three or four people to collect the checks and pay the bills, and you're set. So, 1190 is actually a pretty decent situation compared to 1260, which has no business, comes with no billing, and may or may not be able to be operated as a non-staffed red-headed stepchild in a broom closet. You might have to actually program it to make money!
I don't have any basis for this, so perhaps David or someone else can offer insight, but it would seem that MRBI would rather have a successful 1190 and could dump the 500-watt blowtorch KALI (AM) to make room for it.
"So, 1190 is actually a pretty decent situation compared to 1260, which has no business, comes with no billing, and may or may not be able to be operated as a non-staffed red-headed stepchild in a broom closet. You might have to actually program it to make money!"
AND - as I remember, 1190 has good signal coverage over a vast area in the #2 radio market. I grew up in Tujunga - way out in the foothills north of the San Fernando Valley, and I remember that KEZY from Anaheim (probably 45 miles away) came in loud and clear - at least during the daytime. It was one of my Top 40 car-radio buttons in the late 60s to the right of KHJ, and KRLA.
AND - as I remember, 1190 has good signal coverage over a vast area in the #2 radio market. I grew up in Tujunga - way out in the foothills north of the San Fernando Valley, and I remember that KEZY from Anaheim (probably 45 miles away) came in loud and clear - at least during the daytime. It was one of my Top 40 car-radio buttons in the late 60s to the right of KHJ, and KRLA.
How about some thoughts on which company got the better deal in this exhange, Entercom with the three FM stations the received in SF or Bonneville who received five stations inlcuding Seattle?
TMISU won big time. Seattle plus Cincy and whatever they can get for 12~Sixty.
None of the bidnis on KMPC will remain once the new owners take over. They know how to program and market to a specific audience. Same can be said for a potential owner of 12~Sixty. While the signal aint as strong as 6~Ten, it's no end of the dial with a six tower nighttime array.
TMISU won big time. Seattle plus Cincy and whatever they can get for 12~Sixty.
None of the bidnis on KMPC will remain once the new owners take over. They know how to program and market to a specific audience. Same can be said for a potential owner of 12~Sixty. While the signal aint as strong as 6~Ten, it's no end of the dial with a six tower nighttime array.
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