Nurse Jeff and I are kinda curious as to how Bonneville arrived at the sales price for 12~Sixty. With no ratings, no format and no revenue, what rule of thumb was used? The price paid for the Big 6~Ten a couple of years ago was an eye opener. Does the $14m sales price for 12~Sixty represent the difference in dial position and coverage? And what about that choice real estate? Whoever said AM was dead should check out these prices!
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Catholic Radio on the Air!
- Thread starter romanradio
- Start date
Newsperson replies:
Back in mid 2005 KFRC 610 AM sold for 35 million and they purchased KAER 106.9 FM from Family (the buyer of KFRC) for 95 million. Bonneville evaluated that sale as follows:
The prices were inflated by 5 million, in other words Bonneville thought that the real price for KFRC was 30 million and the real price for KAER was 90 million. Based upon KFRC being sold for a real 30 million they decided(quitely) to seek 20 million for KOIT-AM.
In later 2005 they had the facility tied up with a buyer for a price of 17 million. However that sale never went forward.
In 2007 when they decided to leave San Francisco all of the highest offers were between 14 and 15 million. IHR offered 14.5 million and later hammered the price down to 14 million.
So the value has been established. Anyone can do an appraisal of a value but now we have an actual sale.
The real estate only has value as a transmitter site. This is becasue there is a iron clad lease (with 75-years remaining) with the old KYA-FM 93.3 mhz. The FM station has a granfathered ERP and would loose that status if they moved.
The new call letters are KSFB 1260. KSFB has an excellent signal from Candlestick and moving would not help them finacially.
Has anyone listened to KSFB? Someone said there have been inprovements in Marin County. Can anyone comment on that?
Newsperson
Back in mid 2005 KFRC 610 AM sold for 35 million and they purchased KAER 106.9 FM from Family (the buyer of KFRC) for 95 million. Bonneville evaluated that sale as follows:
The prices were inflated by 5 million, in other words Bonneville thought that the real price for KFRC was 30 million and the real price for KAER was 90 million. Based upon KFRC being sold for a real 30 million they decided(quitely) to seek 20 million for KOIT-AM.
In later 2005 they had the facility tied up with a buyer for a price of 17 million. However that sale never went forward.
In 2007 when they decided to leave San Francisco all of the highest offers were between 14 and 15 million. IHR offered 14.5 million and later hammered the price down to 14 million.
So the value has been established. Anyone can do an appraisal of a value but now we have an actual sale.
The real estate only has value as a transmitter site. This is becasue there is a iron clad lease (with 75-years remaining) with the old KYA-FM 93.3 mhz. The FM station has a granfathered ERP and would loose that status if they moved.
The new call letters are KSFB 1260. KSFB has an excellent signal from Candlestick and moving would not help them finacially.
Has anyone listened to KSFB? Someone said there have been inprovements in Marin County. Can anyone comment on that?
Newsperson
sloux said:
Did you take a look at the KFIA and KCBC contours? KCBC is headed right for us. Regardless of whether they're in Modesto or not they pack a wallop into SF, which is clearly why they built a 50kw monster in Modesto in the first place. KFIA hits SF with a city grade signal easily as well.
DavidKaye said:
Let me add something here: KCBC's owner, Crawford Broadcasting, claims that KCBC is a San Francisco station! In their listing of owned stations, this:
"KCBC-AM San Francisco Christian Talk/Programs 770 kHz, 50 kW "
It's obvious then that KCBC is intended to blanket SF, not Modesto, and thus should be counted among the Jesuscasters.
Further, if Christian music were so important you'd think that KEAR (Christian pop) or KDYA (gospel) would show up in the Arbitrons. They don't.
"Further, if Christian music were so important you'd think that KEAR (Christian pop) or KDYA (gospel) would show up in the Arbitrons. They don't."
I don't think 100.7 "The Bridge" ever showed up in the Arbitrons either, despite an FM stereo signal and a fairly slick format.
I don't think 100.7 "The Bridge" ever showed up in the Arbitrons either, despite an FM stereo signal and a fairly slick format.
newsperson said:
The Big 6~Ten's dial position, power and coverage far exceeds the $10m discount Bonneville assigned KOIT-AM. But there must be some guideline religous and brokered programming operators use to purchase stand alone AMs with no revenue or goodwill.
We thought 93.3 moved to the East Bay a number of years ago. Do they use the Candlestick site as back-up to preserve the grandfathered ERP? Any other FM's using the 12~Sixty tower?
KCBC wasn't always a Christian Station. In fact I remember when KCBC was a NEWS/TALK Station (as KPLA) from 1991-93. At that time, it was marketed as a News/Talk Station FOR SACRAMENTO, not SAN FRANCISCO. In fact, They had their studios in Sacramento while maintaining the Oakdale Transmitter. They were known as "770 THE SOURCE" and it was the original home of Conservative Talk show Host, GEOFF METCALF, before he moved to KSTE-650 in 1992. So it wasn't CRAWFORD BROADCASTING that clearly built a 50kw monster in Modesto! They just acquired it in 1993.DavidKaye said:
Dr. Akbar
Newperson responds:
There is no formula and KOIT-AM was not offered to any paticular type of programer. Once Bonneville announced that it was leaving the San Francisco market things had changed.
Then it became " any qualified person or enity" should make an offer. Besides price the other consideration was " a buyer who would most likely make it to the finish line" which means closing on the purchase.
In this situation there was one seller (Bonneville) who wanted to sell for as much as possible and serveral potential buyers(commercial broadcasters included) that wanted to pay as little as possible. If there was more competition from buyers it may have sold for 15 to 17 million and if there was less it could have sold for 10 to 12 million.
Now we have have a sale to reference (like we did with KFRC) except what really matters is how much competition there is from buyers.
93.3 the old KYA (now SBS Broadcasting) has the discression to use thier aux transmitter site as they desire. They are not willing to move off of Candle Stick Hill for 75 -years (the balance of the lease).
I have listened to KFSB 1260 and have noticed that they are more community involved in the Sacramento area becasue they already have a station there. Any comments on their programing or operations?
Newsperson
Newperson responds:
There is no formula and KOIT-AM was not offered to any paticular type of programer. Once Bonneville announced that it was leaving the San Francisco market things had changed.
Then it became " any qualified person or enity" should make an offer. Besides price the other consideration was " a buyer who would most likely make it to the finish line" which means closing on the purchase.
In this situation there was one seller (Bonneville) who wanted to sell for as much as possible and serveral potential buyers(commercial broadcasters included) that wanted to pay as little as possible. If there was more competition from buyers it may have sold for 15 to 17 million and if there was less it could have sold for 10 to 12 million.
Now we have have a sale to reference (like we did with KFRC) except what really matters is how much competition there is from buyers.
93.3 the old KYA (now SBS Broadcasting) has the discression to use thier aux transmitter site as they desire. They are not willing to move off of Candle Stick Hill for 75 -years (the balance of the lease).
I have listened to KFSB 1260 and have noticed that they are more community involved in the Sacramento area becasue they already have a station there. Any comments on their programing or operations?
Newsperson
newsperson said:
My understanding is that 93.3 cannot move back to Candlestick Hill for main transmitter use because in the interim 92.7 has moved back to Russian Hill and thus made close-spacing an issue. As far as I know, Candlestick can only be used as an auxiliary transmitter now. And yes I know that 92.7 was on Russian Hill while 93.3 was on Candlestick Hill in the past, but I was told that the rules are a bit different now and the close-spacing issue is taken more seriously now.
DavidKaye said:
Nurse Jeff and I've heard that moving 93.3 to the East Bay didn't accomplish much in terms of coverage and perhaps was a bad decision. If indeed they can't go back to Candlestick Hill for their main, then what's the point of the multi-year lease? We're assumming that the new owners of 12~Sixty are collecting rent for tower space.
93.3 was a gradfather station? I don't think so, was their power exceeded 50kw back then.
Also, the spacing with 92.7 & 93.3 is still short space even with their tower location in San Leandro. 92.7 & 93.3 is grandfather when it comes to spacing, so I dont' see it will be a problem moving 93.3 back into candlestick point. However, I wish they move their transmitter to San Bruno mountain to provide an excellent bay area coverage instead of their puiny current location.
Also, the spacing with 92.7 & 93.3 is still short space even with their tower location in San Leandro. 92.7 & 93.3 is grandfather when it comes to spacing, so I dont' see it will be a problem moving 93.3 back into candlestick point. However, I wish they move their transmitter to San Bruno mountain to provide an excellent bay area coverage instead of their puiny current location.
e-dawg said:
I believe it was the CE of 92.7 who told me that 93.3 was stuck. Now, as to grandfathering, that's fine for an in-place station, but changes cause a station to go back to square one. For instance, KIOI has an ERP of 125kw and can continue with that power. But if they move elsewhere, and even if they move back they'd have to conform to the present power limit for their class, 50kw. That's my understanding of such things anyway.
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