Confirmed: UT buying Austin's 98.9 FM

[fredcantu]

Maybe there's a lot less here than we're imagining, folks.

KUT is in the same position as are many other NPR stations...they bought into the HD Radio scam and now have two or three channels that no one can hear. Now, Austin will have two public radio stations, one for music, one for talk. I'm only sorry that it was 98.9 that fell with so much other ... stuff ... crowding the FM band in this market.

Most students at UT are affluent. Most UT students have those smart phones, where you can stream, not to mention pod cast. Why buy an 8 track car stereo for your car, where you can stream from your phone with said smartphone along with a FM transmitter?

As for the HD radio, well more people stream online, than use HD radio. Is KUT and the HD sub carriers streaming online? Looks like a waste of money to me, because I bet 10 years later, we will have digital FM, the analog FMs and AM will be reserved for the new encrypted police/fire/ems bands, maybe even wireless cable. Just like with Analog TV VHF and UHF.

I would be in favor of ACC buying the station, but not a $6 million as well, but not UT which has enough FM stations already.

Maybe they will shed the AM's to ACC, but when was the last time an Non Commercial Educational Radio station bought an AM station?

 

[fredcantu]

when was the last time an Non Commercial Educational Radio station bought an AM station?

Sorry for the previous post. I lost Internet before I could fix it. I wanted to say that there are a number of commercial AMs across the southwest that were purchased by non comm educational licensees who broadcast Spanish language religious programs.

 

[mmnassour]

Most students at UT are affluent. Most UT students have those smart phones, where you can stream, not to mention pod cast. Why buy an 8 track car stereo for your car, where you can stream from your phone with said smartphone along with a FM transmitter?

As for the HD radio, well more people stream online, than use HD radio. Is KUT and the HD sub carriers streaming online? Looks like a waste of money to me, because I bet 10 years later, we will have digital FM, the analog FMs and AM will be reserved for the new encrypted police/fire/ems bands, maybe even wireless cable. Just like with Analog TV VHF and UHF.

Yes, the two KUT HD subchannels are streamed online because as you say, more people are listening online that on HD. And that's the exact reason that KUT is looking for more frequencies, too much program material, too little space. And as for a waste of money, yes, HD FM is a waste of money, since the technology (iBiquity -based) simply doesn't work, either technically or economically.

I would be in favor of ACC buying the station, but not a $6 million as well, but not UT which has enough FM stations already.

Maybe they will shed the AM's to ACC, but when was the last time an Non Commercial Educational Radio station bought an AM station?

What would ACC do with an am radio station? Heck, what would anyone do with an AM?

Once again, had HD been what was promised, NPR stations would not need additional frequencies. But it wasn't. And they do.

 

[Kent]

Most students at UT are affluent. Most UT students have those smart phones, where you can stream, not to mention pod cast. Why buy an 8 track car stereo for your car, where you can stream from your phone with said smartphone along with a FM transmitter?

UT students will not be the prime target audience of 98.9 should the UT purchase it, nor are they likely to compose much of the staff.

Maybe they will shed the AM's to ACC, but when was the last time an Non Commercial Educational Radio station bought an AM station?

I believe there was a deal announced today where IHR, which is a non commercial Catholic company, is buying an AM in Vegas. There have also been instances of public broadcasters buying AM's. Colorado Public Radio has been fairly aggressive about expanding its brand and has not been shy about using AM when it can't find an FM signal. Another Denver area station, KGNU, bought an AM to increase in reach in the southern part of the Denver metro within the last 5 years.

 

[Maize Brothers]

For $6m, I'd say that's pretty cheap for a signal that size smack dab in the middle of the dial. So what's the total net loss so far for Border Media on this group of stations? They've made, what, $7.5m for all but the crappy 104.9 and 1260 frequencies? Anybody have a rough estimate what they paid for these signals? Isn't it in the $35m range total? They lost $28m so far? Can we assume the Horn will sell in the $1.2-$1.5m range?

My only wish is/was that KOKE-FM and their ownership group could have snagged this. KOKE's already replaced KVET-FM on my radio dial, and they've been on air for a day now. THe format, on 98.9, would definitely put an end to CC's pathetic attempt at country variety on 98.1.

 

[mmnassour]

If there was any justice, then the shell of BMP would GIVE 1260 to the City of Taylor so that it could once again be that city's local station, filling a big hole in that community.

But there's not...so it won't.

 

[Ryan Williams]

Anybody have a rough estimate what they paid for these signals?

This is mostly off the top of my head. Maybe someone else can add to the information or correct any mistakes.

- 1.9 million for 1260 and 1530 from Simmons. Just sold 1530 for 600 thousand. I would be surprised if 1260 goes for more than 400 thousand. Probably less.

- 19 million for 92.5, 1440, 1560, 1600 from Garcia (Encino). Sold 1440, 1560 and 1600 back to Garcia a couple of years ago for 5.5 million. Just sold 92.5 to EMF for 750 thousand plus an additional 250 thousand if the upgrade application is approved.

- 18-20 million for 98.9 from Shamrock. Just sold for 6 million to UT.

- They bought 104.9 from Amigo (Rodriguez). Can't recall the purchase price and they still haven't announced a deal. 104.9 is currently better than 92.5, but if the application is approved, 92.5 will be significantly better overall. Also, the higher cash flow and ESPN franchise will likely come into play, increasing the price. I would guess maybe 1.5 to 2.5 million, depending on current cash flow.

- They also bought 1490 from Clear Channel. I can't remember how much they paid for it, but they sold it a year or two ago to Oppenheimer for 1.3 million, which is certainly a lot less than they paid.

So, a conservative guesstimate is that BMP will dismantle and sell off the Austin cluster for between 25 and 30 million less than they paid for the properties. Probably closer to the upper end of that figure. It could also be significantly higher depending on additional considerations in the original asset purchases.

What a nightmare.

 

[Ryan Williams]

If there was any justice, then the shell of BMP would GIVE 1260 to the City of Taylor so that it could once again be that city's local station, filling a big hole in that community.

But there's not...so it won't.

What exactly is the City of Taylor supposed to do with it? Why would they want the hassle?

 

[fredcantu]

If there was any justice, then the shell of BMP would GIVE 1260 to the City of Taylor so that it could once again be that city's local station, filling a big hole in that community.

But there's not...so it won't.

KMIL 1330 in Cameron took a shot at it. They even changed their calls to KTAE. But apparently it didn't work out. According to their website most of their programming now comes from the same network that feeds Alex Jones' pirate in Austin. To their credit they do 30-minutes of agriculture and an hour of polka. Everything else is off the bird... or Internet.

http://www.ktae.net/

 

[mmnassour]

AM 1260 was originally assigned to Taylor Texas as KTAE and until it was sold, what, ten years ago(?) was the community radio station there. It was a typical small town station that covered everything that happened in that community and really didn't give a crap WHAT happened in Austin. A lot of characters came and went through that place, I had the pleasure of visiting the studios in downtown several times as a good friend of mine worked there right after he left U.T.

It was the kind of station that had local musicians come in and play live music on air. They had tradeio. Yes, tradeio where you could call up and sell your own, well, junk. Part of the programming was IIRC, in Spanish, most in English, all of it about Taylor.

I guess I've still got these quaint, outdated, ideas about "community service".

Fred: Yes, I know Fred Lundgren real well. He had high hopes for that but I don't think his idea of local programming (Jim Hightower?) and the good folks of Williamson County were quite the same! ;D But you're right...his programming is anything but local.

 

[MisterRadio]

I've got to add my apologies to the guy that broke the UT/98.9 story as well. He was pretty much right on (accept for the classical part). I bet he was part of the deal....

Anyways, my understanding is that a group of 4 guys from Dallas bought the 104.9 and 1260. The radio guy in the group has a history in Hispanic broadcasting (I don't have the names yet) but they are apparantly fans of the Horn and want to keep it like that...at least that is what I have heard. The interesting part of this question is the ESPN contract. Part of the deal wity ESPN was for Border to clear not only all of the ESPN programming (which they did on 1530) but also the ESPN Deportes programming (which was initially 1260 but may have been on 92.5 at some point). Right now 104.9 and 1260 are simulcasting the Horn progamming which only clears some of the ESPN programs and no Spanish. This starts the new owners off in breach. We'll see what happens....

 

[mmnassour]

I'm betting Spanish returns to 1260 and they renegotiate 104.9 to allow more local. After all, what would ESPN rather have...most of their programming, or none of it, on in Austin?

And we have to remember that the original contract was signed with BMP, right? Well, BMP is gone, for all intents and purposes. And in a bankruptcy situation, contracts like that are gone as well, so ESPN will have to deal with a brand new entity since the old contract is null and void.

Just my guess, btw.

 

[fredcantu]

Don't forget Border Media in San Antonio moved ESPN Deportes to 10,000 watt KSAH 720 which reaches Austin in daylight hours-- which is what KTAE did, too.

 

[mmnassour]

Indeed and KSAH comes in a LOT better than 1260 over much of Austin! However, this isn't Border Media any longer, it's a holding company that's about to become four guys from Dallas.

It's kind of sad....I remember the day the BMP purchase of KTSA was announced and the guys on the afternoon show there were cheering how great it was going to be. C'est la vive.

 

[davideduardo]

- They bought 104.9 from Amigo (Rodriguez). Can't recall the purchase price and they still haven't announced a deal.

Amigo sold 7 or 8 properties in 2004 to BMP for $70 million. KXEB, KXXS, KNEX, KHHL, KOKE, KWOW and KL NT were part of the deal.

 

[intx]

Regents just decided to table a vote on the acquisition: http://www.austin360.com/blogs/cont...delay_vote_of_purchase_of_sister_station.html