There's a bit in this mornings Radio-Info news. Speculation on $14-15 million for a trio of stations but no info on a potential buyer or whether it's WRMM or WCMF that might be included.
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Finally a buyer for Entercom stations in Rochester?
- Thread starter ThePickleReport
- Start date
J
JohnGault
Guest
Does Entercom finally have a buyer for his three Rochester stations?
Didn’t hear who it is, but I believe David Field’s got at least a letter of intent on three FMs he’s been
trying to divest for quite some time, since before he struck the bulk-up-in-Rochester deal with CBS
Radio. The package would presumably include modern rocker WZNE (94.1) and adult hits “Fickle” WFKL (93.3), plus a third
FM. T-R-I has speculated about whether that would be “Warm” WRMM (101.3) or perhaps rocker WCMF (96.5). At one point
Entercom was asking close to $30 million for the trio. I’m hearing the eventual price may be well South of that, maybe closer
to $14-15 million.
If it's the David Field I know, his EGO will not easily allow him to sell CMF at this point. He's made a pretty strong stand that he can run it without the heritage morning show. He is stubborn. On the other hand if the buyer is particularly uninformed about the market, it might be done.
My crystal ball says CMF stays with Entercom.
Waiting for the Justice Dept. Filing
$14-15 million for Fickle, Zone, and either WRRM or 'CMF would be an incredible bargain. WRRM has to bill at least $10M/year all by itself, and can't have nearly the overhead of 'CMF. Remember when The Lake went for over $10-million a few years ago?
Since Entercom let the Bills broadcasts go to WHAM/Fox, I'm guessing that they'll try to keep WRRM, and let 'CMF go for peanuts now that they've reduced costs for the new owner.
Clear Channel certainly doesn't seem to be affected by the "hiring freeze". The Bills rights didn't come cheap.
$14-15 million for Fickle, Zone, and either WRRM or 'CMF would be an incredible bargain. WRRM has to bill at least $10M/year all by itself, and can't have nearly the overhead of 'CMF. Remember when The Lake went for over $10-million a few years ago?
Since Entercom let the Bills broadcasts go to WHAM/Fox, I'm guessing that they'll try to keep WRRM, and let 'CMF go for peanuts now that they've reduced costs for the new owner.
Clear Channel certainly doesn't seem to be affected by the "hiring freeze". The Bills rights didn't come cheap.
B
bobn
Guest
WRMM doesn't bill $10 M. It's the 3rd highest biller in Rochester...a $36 million dollar market. It bills about $5 million at best. BEE/WHAM are 1 and 2.
A
AndrewLawson
Guest
Despite a miscalculation on the revenue projection of WRRM, Roxalot makes a good point about the reported asking price for WRRM, Fickle and The Zone. According to subsequent posts, WRRM bills around $5 million annually. If figures suggested here are correct, that's more than 13% of the radio revenue in the market. The next and perhaps more pertinent question: How much might WRRM cash flow? If it runs on a 30-40 per cent margin, the reported asking price is quite reasonable. The follow-up question? What company might want to take a flier on one Class B and two Class A's, even at that price? There's a fully-stocked Entercom on one side and a fully stocked Clear Channel on the other. Trap play?
Stutter Steppin'
OK, that's what I get for listening to a sales guy. Upon further review - and better sources - it looks like the $5-mill is closer to the truth.
Either way, $15-million for WRRM, Fickle, and the Zone is a fire sale number. I still think that Entercom covets female numbers (i.e. WRRM) more than male numbers (i.e. 'CMF). If they thought that they weren't going to get their selling price, they may have decided to reduce the ongoing costs of the properties in order to make them more attractive. At the same time, letting Wease go to Clear Channel forces them to push up spot prices on the Fox, and helps create more competition for 'CMF - reducing competition for male numbers generated by 'BEE and Buzz.
I know that Citadel's stock is in the toilet, but don't you think that they'd love to add Rochester to their Buffalo, Syracuse, and Binghamton clusters? I can almost hear Imus & Scott Shannon's True Oldies on Fickle or Zone. What's another $15-million when you just wrote down the value of your stations by over a billion dollars?
OK, that's what I get for listening to a sales guy. Upon further review - and better sources - it looks like the $5-mill is closer to the truth.
Either way, $15-million for WRRM, Fickle, and the Zone is a fire sale number. I still think that Entercom covets female numbers (i.e. WRRM) more than male numbers (i.e. 'CMF). If they thought that they weren't going to get their selling price, they may have decided to reduce the ongoing costs of the properties in order to make them more attractive. At the same time, letting Wease go to Clear Channel forces them to push up spot prices on the Fox, and helps create more competition for 'CMF - reducing competition for male numbers generated by 'BEE and Buzz.
I know that Citadel's stock is in the toilet, but don't you think that they'd love to add Rochester to their Buffalo, Syracuse, and Binghamton clusters? I can almost hear Imus & Scott Shannon's True Oldies on Fickle or Zone. What's another $15-million when you just wrote down the value of your stations by over a billion dollars?
Personally I am still holding out the faint hope that someone local will purchase the three FM stations, bring in professional talent, and then let the talent try something different; personality radio.
Local Interest
Hey, if we're down to the $15-million level, start lining up your friends. Golisano could buy the three for pocket change and have his own Sabres outlet in town.
Hey, if we're down to the $15-million level, start lining up your friends. Golisano could buy the three for pocket change and have his own Sabres outlet in town.
J
JohnGault
Guest
While I like the Imus wagging the company observation, I wouldn't expect Citadel to buy right now. Farid is focused on justifying what he's already done.
I'd look for somebody unexpected.
I'd look for somebody unexpected.
Citadel is on a bit of shaky ground right now so I would be surprised if they were they buyer.
There's another story by Tom Taylor this morning on Radio Info that it's definitely WFKL, WZNE, and WRMM that are for sale, not WCMF.
There's another story by Tom Taylor this morning on Radio Info that it's definitely WFKL, WZNE, and WRMM that are for sale, not WCMF.
Savage said:Actually I've seen the data. In 2006 WRMM billed $5.2 million producing a BCF (broadcast trailing cash flow) of approximately $2 million. It's a nice profitable operation. WZNE and WFKL have never made a dollar.
Bob...what competitor would show you their BCF? 5.2 still seems high...
I heard from a very reliable source that the most updated billing figure was closer to $9 million for WRMM.
Mark_Giardina said:I heard from a very reliable source that the most updated billing figure was closer to $9 million for WRMM.
NO WAY THAT'S CLOSE! WHAM & WBEE are doing 5 mil + apiece...WRMM has been too inconsistent to bill 9 mil a year. They nevr did that even 5 years ago.
Mark, if your friend, Mr. Savage has seen the figure for 2006 and it's $5.2 mil, it's very, very unlikely that WRMM billed around the $9 mil mark the following year. Stations in markets like Rochester just don't show that kind of year to year increase especially in today's radio climate.
I am just passing along what my source, who I can only say is very reliable, told me; and that is WRMM billed " slightly less than ten million dollars."
I'm not disputing what Bob Savage says, just providing what I was told.
I'm not disputing what Bob Savage says, just providing what I was told.
Mark_Giardina said:I am just passing along what my source, who I can only say is very reliable, told me; and that is WRMM billed " slightly less than ten million dollars."
I'm not disputing what Bob Savage says, just providing what I was told.
You know what they say about sources...
They may have done 5 mil earlier in this decade with great ratings...I know for a fact due to economics, rates, etc....they're between 3.5-4 mil right now
Dollars and Sense
No matter how you slice it, $15-million would be low for WRRM and two class Bs. Even IF luvweakbeer is right, cash flow is likely to be at least $2-million. Even a 10x multiple - which is low compared to past deals - would put the value at $20-million+.
Of course, like any other deal, the group is worth what someone is willing to pay you. Entercom is likely in no hurry to sell since they're making a profit, and the market is depressed. It will be interesting to see if the drop in interest rates frees up money for a potential purchaser.
BTW, I agree that Citadel isn't likely to be the buyer. They've got enough money problems right now that I don't think that they'll be buying anything. That doesn't mean that they wouldn't LIKE to have WRRM.
No matter how you slice it, $15-million would be low for WRRM and two class Bs. Even IF luvweakbeer is right, cash flow is likely to be at least $2-million. Even a 10x multiple - which is low compared to past deals - would put the value at $20-million+.
Of course, like any other deal, the group is worth what someone is willing to pay you. Entercom is likely in no hurry to sell since they're making a profit, and the market is depressed. It will be interesting to see if the drop in interest rates frees up money for a potential purchaser.
BTW, I agree that Citadel isn't likely to be the buyer. They've got enough money problems right now that I don't think that they'll be buying anything. That doesn't mean that they wouldn't LIKE to have WRRM.
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