Alt 92.9

[Wimmmex]

At roughly $7 million annual billing (12th in the market, but less than a quarter the billing of WEEI), they might be cash flowing just what you estimate.

I guess you have to subtract the cost of running a competitive FM station in Boston....which I thought was about $6/7 Million.

At current multiples of 6 to 7 times BCF for FMs, the station is worth about $18 million, give or take. Add in "opportunity mark-up" for a scarce good facility, and perhaps it is worth $22 million at the high end.

Wow....My figuring was just "back of an envelope" thinking.

But is the price now THAT low?

102.5 in 2006 was part of a station swap, that some were saying was estimated to be worth $85 million.

Full signal WBOS now worth only $18-20 Million?)

I would assume that those buying a full signal FM signal are doing so for the full major market signal in Boston. Not so much based on their current billing. (i.e...K-Love, etc.)

 

[raccoonradio]

What could've been: in the spring of 06, the Globe reported the Red Sox were pondering a move to WBOS in a deal with Greater that could've made the Sox a part owner of the station.Sox re-upped with Entercom instead.

http://archive.boston.com/sports/ba...06/03/18/sox_look_to_move_broadcasts_to_wbos/

A year later they thought about doing sports talk as 92.9 the Ticket, but they didn't have any play by play rights.CBS instead made 98.5 the city's first FM sports station (already had Pats and B's, later got C's, Revs).(This according to Wiki--first I'd heard of it.)

 

[MarkW]

But is the price now THAT low?

Yes.

There are two decent comparables in Chicago you can use for benchmarking - WLUP and WKQX. Those stations weren't exactly sold on a fair market basis, and there a couple dynamics in play in Boston that make radio station valuations different than Chicago. Boston is not as competitive as the Chicago radio market - advantage Boston. However, Boston doesn't have as much radio revenue in play as Chicago - advantage Chicago.

I would say David's estimate of $18 million to $22 million is right on target.

Milwaukee's venerable news/talk outlet and Green Bay Packers football flagship, 620 WTMJ, along with sister station 94.5 WKTI earlier today sold for only $16 million - combined!!! Entercom could've had those stations and apparently had no interest even at *that* meager price! So could two other existing companies in the market - Milwaukee Radio Alliance and Saga. Ultimately, the pair was sold to tiny Good Karma Broadcasting, the company founded by Mel Karmazin's son a number of years ago.

WTMJ's ratings have eroded quite badly over the past decade. They used to be #1 or #2 overall and top five in 25-54 almost every book. Fifteen years ago, that station by itself probably would've been worth $30 million all day long. The writing is on the wall for AM radio. 850 is now a nothing burger. WRKO is an afterthought as is WABC in New York. WCCO in Minneapolis, WBT in Charlotte, WGN in Chicago and KGO in San Francisco have all witnessed gigantic AQH audience declines over the past decade.

I would guess that the typical full market, commercial FM station in Milwaukee is worth about 40% to 50% the value of a comparable station in Boston.