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EMMIS PRIVATIZATION NIXED - BYE BYE 'RXP???

W

WRXPinsider

Smulyan is in DESPERATE need of cash to stave off his $340 million debt.

Is he gets real with the $$$ that he can get for 101.9 (probably selling to ESPN, as has been mentioned here many times), he can knock out a huge chunk of that debt (and toss lots of people out of work at the same time - many just trying to earn a living, others who are incompetent morons who led the station into the disaster state that it's currently in).

What kind of price could Emmis realistically get for the frequency? And would the arrogant Teflon-coated hack suits who take credit for the golden turd that is RXP - namely Alex Cameron, VP/GM and Brian Aurelio, OM and 1/2 of the voice-tracked "From The Basement" show - survive and maintain their high-priced employment???

We're wondering and we're WORRIED.
 
WRXPinsider said:
What kind of price could Emmis realistically get for the frequency?
Click to expand...

The price for recently sold WQXR should tell you that.
 
DavidEduardo said:
WRXPinsider said:
What kind of price could Emmis realistically get for the frequency?
Click to expand...

The price for recently sold WQXR should tell you that.
Click to expand...

The question is would ESPN/Disney want to buy or lease 101.9 FM. If they leased it, Jets' fans in NY suburbs might be able to listen to their team's games before the end of the current season! A sale would probably take longer.

If I recall correctly, Univision paid $45MM for 'QXR. 'RXP should do equally as well. The 101.9 signal can be received deep into Ocean County, NJ and well into Suffolk County, NY, areas where 1050 is virtually unlistenable. :)
 
WRXPinsider said:
Smulyan is in DESPERATE need of cash to stave off his $340 million debt.
Click to expand...

If he has the financing to take the company private, seems to me that same financing should be applicable for buying down the debt. The difference is the company providing the capital becomes a stockholder. The down side is the company the buys the debt gains a stake in the company. I'd imagine that's the next step here. But it's not the preferable way to go.
 
radioguy39nj said:
The question is would ESPN/Disney want to buy or lease 101.9 FM.
Click to expand...

The lease with an option to buy is the best way to go right now. No one has the cash to buy, and prices are deflated. But they leased the former Movin' station in LA to a Mexico-based company a while back, and that took the costs off their books. So looking into leasing one of the NY properties may be an option.

Turning broadcasting companies into landlords may be a good way to get out of debt short of bankruptcy. There is no shortage of content companies without frequencies who are looking for an outlet, while not looking to get into ownership positions, and Disney is one of those companies. I'd imagine all of the big radio companies are considering it. There might be more cash in rent than in advertising. It seems to be working for Vornado.

Disney may still be wincing a little bit after the Citadel deal. It ended up dragging down their stock price, and a lot of Disney investors felt burned. So they may be a little tentative on this.
 
Don't expect anything too soon. Only $4,000,000 is due in the next year.
 
TheBigA said:
radioguy39nj said:
The question is would ESPN/Disney want to buy or lease 101.9 FM.
Click to expand...

The lease with an option to buy is the best way to go right now. No one has the cash to buy, and prices are deflated. But they leased the former Movin' station in LA to a Mexico-based company a while back, and that took the costs off their books. So looking into leasing one of the NY properties may be an option.

Turning broadcasting companies into landlords may be a good way to get out of debt short of bankruptcy. There is no shortage of content companies without frequencies who are looking for an outlet, while not looking to get into ownership positions, and Disney is one of those companies. I'd imagine all of the big radio companies are considering it. There might be more cash in rent than in advertising. It seems to be working for Vornado.

Disney may still be wincing a little bit after the Citadel deal. It ended up dragging down their stock price, and a lot of Disney investors felt burned. So they may be a little tentative on this.
Click to expand...

It's no secret ESPN has been seeking a class B FM signal in the NY market for at least the past two years. WEPN on 1050 AM with its directional signal cannot effectively compete against WFAN on 660 with its 50 kW blaster.

With Emmis' financial woes, what might be the future of 97.1 and 98.7? Could they be sold or LMAd as well? :-\
 
radioguy39nj said:
With Emmis' financial woes, what might be the future of 97.1 and 98.7? Could they be sold or LMAd as well? :-\
Click to expand...

Inside Radio suggests Smulyan's next step could be the courts.
 
What is Emmis doing? They own Q101.1 in Chicago why not model RXP after that then ratings will go up. I still think their station doesn't fit with Hot 97 or Kiss FM. It sounds completely out of place! Are they stupid or something? I think CBS should buy it and flip it to Rock and return KRock and call it KRock @ 101.9 with Alternative Rock modeled after KROQ-FM in LA.
 
Wow your right, I just checked out Q101 on Yes .com I gotta say if they modeled 101.9 after that that would be a HUGE improvement.
 
As nice as it may sound to have a WFAN-FM, I THINK CBS is maxed out in the NY market. Unless when they ditched 1480 it gave them room for another. Not sure
 
The rule is they can own 8 stations total, five of which can be in the same band (AM or FM).

As far as I know, CBS owns 6: 3 AM and 3 FM.
 
TheBigA said:
The rule is they can own 8 stations total, five of which can be in the same band (AM or FM).

As far as I know, CBS owns 6: 3 AM and 3 FM.
Click to expand...

The cross-ownership with WCBS-TV brings them down one station on the cap, so they'd be limited to no more than 7 stations in NYC.

The question I'd ask, if I were CBS, is whether spending the $60 million or so that it would cost to acquire 101.9 would be worth it. WFAN is already at or near the top of the revenue heap in NYC. Would moving it to FM generate enough additional revenue to cover the acquisition cost of the FM? That would be a hard act to pull off.

(And then what do you do with 660?)
 
Scott Fybush said:
TheBigA said:
The rule is they can own 8 stations total, five of which can be in the same band (AM or FM).

As far as I know, CBS owns 6: 3 AM and 3 FM.
Click to expand...

The cross-ownership with WCBS-TV brings them down one station on the cap, so they'd be limited to no more than 7 stations in NYC.

The question I'd ask, if I were CBS, is whether spending the $60 million or so that it would cost to acquire 101.9 would be worth it. WFAN is already at or near the top of the revenue heap in NYC. Would moving it to FM generate enough additional revenue to cover the acquisition cost of the FM? That would be a hard act to pull off.

(And then what do you do with 660?)
Click to expand...

The example I have pointed to is CBS' WXYT AM-FM in Detroit. It's branded as "97.1 The Team" and is simulcast on 1270 AM. IMHO, CBS will never let go of 660 AM. 'FAN would simulcast on 660 AM and on FM. Is 92.3 NOW-FM sustainable? If there ever is a WFAN-FM, it will be on 92.3. Sports on FM is catching on in many other markets. I don't see CBS acquiring 101.9 FM. :)
 
TheBigA said:
radioguy39nj said:
With Emmis' financial woes, what might be the future of 97.1 and 98.7? Could they be sold or LMAd as well? :-\
Click to expand...

Inside Radio suggests Smulyan's next step could be the courts.
Click to expand...

Is that how Emmis retains control of its stations? It won't make 'RXP profitable. ESPN/Disney is waiting! :)
 
I could have seen CBS Radio make 92.3 WFAN-FM after the FREE FM talk format instead of going to K-Rock again. But as for CBS Radio NY in its current state I see them wanting to stick with music on the FMs and news and talk on the AMs. Just look at how well News Radio 880 is doing and Sports Radio 660 along with 1010 WINS great ratings.
 
Ken said:
I could have seen CBS Radio make 92.3 WFAN-FM after the FREE FM talk format instead of going to K-Rock again. But as for CBS Radio NY in its current state I see them wanting to stick with music on the FMs and news and talk on the AMs. Just look at how well News Radio 880 is doing and Sports Radio 660 along with 1010 WINS great ratings.
Click to expand...

1010 WINS has been slipping of late. 92.3 NOW-FM is doing OK, but isn't hurting Z-100. That may bear watching.

The migration of spoken word formats to FM will get to New York eventually. :)
 
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