Crappy Radio One Gets 137.5 Million for 100.3

[rapking]

L A is no longer a Crappy Radio One city. Boonnerville buys Urban A/c KRBV for 137.5 Million Bucks .

 

[atwater kent]

Does anyone remember what Radio One paid for this signal?

 

[davideduardo]

Does anyone remember what Radio One paid for this signal?

Approximately $400 million; it was part of a multi-station buy, but folks think that $400 was attributed to 100.3.

 

[atwater kent]

Does anyone remember what Radio One paid for this signal?

Approximately $400 million; it was part of a multi-station buy, but folks think that $400 was attributed to 100.3.

So, is this just a case of Radio One's foolish spending or is it a major recalibration of signal values in Los Angeles?

 

[kyscott]

Radio One's method of operation seems to be that if they can't make it work with their twisted procedures, sell it. After the Blue Chip purchase, only one original market remains, Cincy. If I were a stock holder in this company, I'd be asking for Liggins' head for driving this company in the ground.

 

[davideduardo]

So, is this just a case of Radio One's foolish spending or is it a major recalibration of signal values in Los Angeles?

Recalibration in part and a money losing station on the other hand. Togehter, what we have is a stick value sale. Last stick sold was KFSG, not a Wilson facility, for $250 million.

If Emmis sells Movin, as many predict it may, we would expect it to go for something in the same range as 100.3, perhaps a bit higher due to the better coverage and signal.

 

[ercjncpr]

nice $ chunk of change $ for a radio company that shouldn't be in radio

 

[davideduardo]

nice $ chunk of change $ for a radio company that shouldn't be in radio

It's a fire sale price... they will have to write off the difference in valuation and the sale.

 

[Kent]

I have to agree that it's a fire sale price. When you take into account that roughly $38-40 million of that money they're getting for KRBV is likely to go right back to Bonneville to close on WPRS-FM, it's not a stretch to say Radio One lost $300 million on that station. Of course, they may have made money on 100.3 for a few years as KKBT, and I suppose it's possible they won't close on the deal for 104.1 in Washington, but Radio One made out very poorly in this deal no matter how you look at it. I just couldn't believe the company's stock was up after announcing this deal!

 

[Michael Rivers Kramer]

More News Talk and Sports on FM, fewer choices in music.

 

[ercjncpr]

nice $ chunk of change $ for a radio company that shouldn't be in radio

It's a fire sale price... they will have to write off the difference in valuation and the sale.

sorry, I was being a bit sarcastic...I meant that it is more than they deserve

 

[kyscott]

I have to agree that it's a fire sale price. When you take into account that roughly $38-40 million of that money they're getting for KRBV is likely to go right back to Bonneville to close on WPRS-FM, it's not a stretch to say Radio One lost $300 million on that station. Of course, they may have made money on 100.3 for a few years as KKBT, and I suppose it's possible they won't close on the deal for 104.1 in Washington, but Radio One made out very poorly in this deal no matter how you look at it. I just couldn't believe the company's stock was up after announcing this deal!

I looked back at the recent sales of Radio One stations. They have lost money on all of them. They lost about 15 million on the Louisville KY/Dayton OH sale and the Augusta GA and Miami FL sales.

 

[JustinT]

I looked back at the recent sales of Radio One stations. They have lost money on all of them. They lost about 15 million on the Louisville KY/Dayton OH sale and the Augusta GA and Miami FL sales.

They did pocket $20 million off the sale of WILD-FM in Boston, though they've got a several million dollar loss going their way when they're finally able to dispose of WILD 1090, an AM daytimer.