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Is Deal for WCVO to Acquire WRFD Struggling?

During the last earnings call, Salem said they expected to have this transaction closed latest by the end of the 2nd quarter. We're less than 25 days away from the 2rd quarter ending.

Any update on this long overdue to close transaction?
 
del_griffith said:
During the last earnings call, Salem said they expected to have this transaction closed latest by the end of the 2nd quarter. We're less than 25 days away from the 2rd quarter ending.

Any update on this long overdue to close transaction?
Click to expand...

They say the latest is there is no definite closing date date, at least not yet. Will there ever be a closing date? The FCC approve the sale of WRFD almost nine months ago.
 
That doesn't surprise me. The station being purchased is always the LAST to know. I wonder if WCVO would have a better idea of an actual closing date. Perhaps they would be a better one to ask.
 
CVCO should have even more money now to finish off the purchase of WRFD..

Read this on All Access:

"In another deal filed with the FCC, CHRISTIAN VOICE OF CENTRAL OHIO is selling Christian Talk WZRP (THE PROMISE)/RICHMOND, IN to EDUCATIONAL MEDIA FOUNDATION for $200,000."
 
xmusicmatt said:
CVCO should have even more money now to finish off the purchase of WRFD..

Read this on All Access:

"In another deal filed with the FCC, CHRISTIAN VOICE OF CENTRAL OHIO is selling Christian Talk WZRP (THE PROMISE)/RICHMOND, IN to EDUCATIONAL MEDIA FOUNDATION for $200,000."
Click to expand...

WCVO is going to have EVEN MORE money when they sell the land at their old tower site. Also, Salem Media Ohio is asking the FCC for ANOTHER extension of time to sell WRFD to CVCO. This application was accepted yesterday by the FCC and shows how the deal is STILL struggling:
http://fjallfoss.fcc.gov/prod/cdbs/...h.cgi?exhibit_id=765462&formid=905&q_num=5000
 
A couple of things. One, 200k isn't much toward 4 million.

Two: If Salem is willing to wait for what is now almost a year without any apparent petitions to deny it means that:

a) They know they'd likely not get that amount from another buyer so they are hanging on to the one they've got on the hook.
b) There may be a lack of buyers willing to deal with a daytime station and an increasing amount of competition for pay to play programs to air their stuff in Columbus. Many of the programs are available on 91.5 as well as The Path, the FM in Delaware in the non com band, and two Fairfield County stations that air much the same programs.

Unbundling those contracts from Salem may not guarantee that the amount Salem allocated to Columbus is what Dobson et al is willing to pay WRFD not owned by Salem.
 
del_griffith said:
Less than 30 days on the latest extension.
Click to expand...

Now What? Is the deal dead or dose WRFD apply for yet another extension? The current/last extension is the last one they said they would need to file.
We are talking about three weeks and three days until the current extension expires.
 
The plan is that WCVO is to buy WRFD then go bankrupt. Brilliant. True WRFD AM broadcast 23KW but it is a daytimer. There are stations that broadcast 24 hours that are cheaper to buy. They should keep the money to keep WCVO FM running. Why buy an overprice daytimer thta doesn't get ratings of any kind. WLW have higher ratings in Columbus. Then its there money and if they want to squander it fine. Don't go to your listener base and beg for money if they can't support WRFD.
 
My guess is that, at this point, both parties have lost interest in the sale. I don't know, I could be wrong... But the economy has changed a lot since this sale was originally announced, and it just seems that something would have been done by now if this was gonna go forward.
 
willcail said:
The plan is that WCVO is to buy WRFD then go bankrupt. Brilliant. True WRFD AM broadcast 23KW but it is a daytimer. There are stations that broadcast 24 hours that are cheaper to buy. They should keep the money to keep WCVO FM running. Why buy an overprice daytimer thta doesn't get ratings of any kind. WLW have higher ratings in Columbus. Then its there money and if they want to squander it fine. Don't go to your listener base and beg for money if they can't support WRFD.
Click to expand...

According to Salems' quarterly financial statement, it appears WRFD had a net profit of 100k for the quarter. Not bad for an AM daytimer. I would think most AM operators would be thrilled to have that kind of income.
 
How much of the $100,000 revenue is from actual ad sales and not donations? Or there are business are willing to fork over the big bucks for a station on average gets around 0.8 share?
 
willcail said:
How much of the $100,000 revenue is from actual ad sales and not donations? Or there are business are willing to fork over the big bucks for a station on average gets around 0.8 share?
Click to expand...

Yes, those are SALES. As a commercial station, WRFD does not take donations.
There are many stations that sell advertising without subscribing to or relying on ratings. The big question is- will the station's audience buy my product? For example, If I operate a Christian School with a limited ad budget and looking to add enrollment, where do I target my dollars. For the sales rep, it's all about building a relationship with the advertising client and giving them tangible results.

Stop looking at the 12+ numbers as gospel (no pun intended). They are meaningless when selling radiio spots.
Ad agencies look at the specific demos their clients are looking to reach.

There is an old saying- live by the numbers and die by the numbers. No thank you.
 
WCVO gets better ratings than WRFD AM. Plus does anyone listen to the so called AM dial anymore besides WTVN or WOSU AM? I doubt that WRFD generates that much ad revenue.
 
From Salem's investor relations page:

On July 31, 2008, we entered into an agreement to sell radio station WRFD-AM in Columbus, Ohio for $4.0 million. As a result of the sale, we will exit the Columbus, Ohio market. The accompanying Condensed Consolidated Balance Sheets and Statements of Operations reflect the operating results and net assets of the entity as a discontinued operation for the three and six months ended June 30, 2008 and 2009. The sale is subject to the approval of the FCC and is expected to close in the second half of 2009. As of December 31, 2008 and June 30, 2009, assets held for sale include the property and equipment to be sold with the Columbus, Ohio station of $0.2 million.
The following table sets forth the components of income from discontinued operations, net of tax, for the three and six months ended June 30, 2008 and 2009.

Income net of tax for WRFD was $109,000 for the second quarter and $143,000 for the first 6 months of 2009. Salem reports that they typically have higher income periods during the 2nd and 4th quarters.

For a station with a less than one share if any rating at all, and on a daytime AM station, those income numbers (not sales, but income) are pretty darn good.
 
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