BMP, Austin, Radio signals, and Station sales

[radioman921]

This was an article from the Austin Business Journal: (Jan 11,2005)

"Four Spanish-language radio stations in Austin have been sold to Border Media Partners LLC for $19 million.
KELG-AM 1440, KTXZ-AM 1560, KFON-AM 1490 and KKLB-FM 92.5 were sold to Houston-based Border Media Partners by Austin-based Dynamic Radio Broadcasting Corp., which was founded in 1985 by local broadcasting pioneer Jose Jaime Garcia."


Now from Radio Ink:

"AUSTIN -- September 25, 2007: Border Media Partners has sold three AMs in Austin -- Regional Mexican KELG, Air America Radio affiliate KOKE, and Spanish Oldies KTXZ -- to Jose J. Garcia for $5.5 million. American Media Services brokered the deal."


So you are telling me that the FM was worth $13.5 million? I heard that Castro had been made aware before the original purchase of JJ Garcias' property that he had been told that the stations were worth only $3m and that it wasn't worth buying. Either Castro is not a very smart guy or something else. It smells......The FM is a marginal signal and if I its worth $13.5m I would like someone to tell me. KKLB is now KXXS 92.5 and the signal isn't very good.

 

[War Of Attrition]

Castro paid an extraordinary high multiple to begin with, but their is more horse-trading going on than first meets the eye.

Here is the breakout:

- Garcia sold 1440, 1490, 1560, and 92.5 for $19.5 in 2004.

- Garcia is buying 1440, 1560, and 1600 for $5.5.

This means that BMP is keeping the FM and the best AM of the group and selling back 3 marginal AMs.

92.5 is not a good signal, but it's best coverage area are the Hispanic zip codes on the east side of town. Also, an allotment has been reserved for a C3 upgrade for KXXS (although only part of the upgrade is listed on the FCC website).

The acquisition could have also had an axillary benefit of beefing up BMP's portfolio so that they could raise more investment money.

 

[radioman921]

Not enough to justify the price. I believe there is more to the deal than meets the eye.

 

[Mediafrog+]

92.5 is not a good signal, but it's best coverage area are the Hispanic zip codes on the east side of town. Also, an allotment has been reserved for a C3 upgrade for KXXS

Whatever became of that upgrade? Plans for a C3 on 92.7 were revealed around five years ago, but nothing has ever happened.

 

[purpledevil]

Could it be they are trying to put together some money to purchase a station in Houston? I find it odd they are HQ'ed here, but own no stations here.

 

[radioman921]

No, actually they are HD'q in Houston because that is where Tom C lives. His money people are now discovering that he over spent and they want a decent return. Thats why he isn't running things. He let some really good people go and left in charge yes men who don't have a clue. Now that the money people have figured it out they took his title away and position away, started to sell some stations that should never have been bought and are bringing in people who know how to work with bean counters like the new guy in charge of the company. (ie the guy in Austin) In Laredo they brought back Villareal and whether its public knowledge or not he had gotten his money owed him that T. Castro didn't want to pay when trying to get rid of him. And now they bring him back. Villareal is a good guy and should be fine in Laredo. Lets face it, if the money people really knew how T. Castro ran things they would never have given him the $. I know for a fact that some Univision Upper management don't think much of him as a threat. They know better.

 

[Kent]

My memory of Tom was with the old El Dorado Communications. I lived in Dallas when he bought KRVA 1600/106.9 and KXEB 910. I just about died laughing when he said he would become a serious competitor to Heftel's cluster! There was no way he was going to make it work with those signals, and I couldn't believe he didn't figure that out. I'm thinking he was gone from Dallas within a year.

As for Villarreal, it does look like he's trying to put his stamp back on Laredo. It looks like he's pretty much running the old format he ran on 94.9, just a little updated. He wasted no time in doing it either.