$22.58 million for an extended band station with a fleawatt night pattern seems a bit steep, even in LA. I'm doubting there's any billing to support this; am I wrong? If this is the new paradigm, what do decent FMs go for... a billion? If current multiples are 13x or so, KFOX is billing $1.6 mil or so.
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KFOX sale
- Thread starter ajhenderson
- Start date
Re: KFOX sale- Radio Price To Sales Ratio
This sounds awfully high for the dial spot and signal coverage of a basic daytimer.
I was under the impression that a price that was about 3 times sales/billing was about median, or around 10 to 15 times adjusted earnings.
Well there is one born every minute, but the seller of KFOX if they indeed get $22 Million should be thrilled.
Lussenheide
> $22.58 million for an extended band station with a fleawatt
> night pattern seems a bit steep, even in LA. I'm doubting
> there's any billing to support this; am I wrong? If this is
> the new paradigm, what do decent FMs go for... a billion? If
> current multiples are 13x or so, KFOX is billing $1.6 mil or
> so.
>
This sounds awfully high for the dial spot and signal coverage of a basic daytimer.
I was under the impression that a price that was about 3 times sales/billing was about median, or around 10 to 15 times adjusted earnings.
Well there is one born every minute, but the seller of KFOX if they indeed get $22 Million should be thrilled.
Lussenheide
> $22.58 million for an extended band station with a fleawatt
> night pattern seems a bit steep, even in LA. I'm doubting
> there's any billing to support this; am I wrong? If this is
> the new paradigm, what do decent FMs go for... a billion? If
> current multiples are 13x or so, KFOX is billing $1.6 mil or
> so.
>
> Who's the buyer?
Technically, nobody, an internal share buyout, but the valuation should remain similar.
http://www.radioandrecords.com/NewsRoom/2005_09_22/Transactions.asp
Technically, nobody, an internal share buyout, but the valuation should remain similar.
http://www.radioandrecords.com/NewsRoom/2005_09_22/Transactions.asp
Re: KFOX sale- Radio Price To Sales Ratio
> This sounds awfully high for the dial spot and signal
> coverage of a basic daytimer.
It is not a daytimer for the audience group, Asians, that it serves.
>
> I was under the impression that a price that was about 3
> times sales/billing was about median, or around 10 to 15
> times adjusted earnings.
18 to 19 times cash flow is pretty usual today. LA facilities pay a premium, as the market is one of $1.1 billion dollars, and a fultime AM is worth, stick value, over $20 million. This transaction was for an internal share transfer, not the whole station, which is worth more.
>
> Well there is one born every minute, but the seller of KFOX
> if they indeed get $22 Million should be thrilled.
They are buying at a discount due to family issues, I believe.... Chagal is reducing its share It was bought a few years ago from Mr. Levine for %30 million. Now a part of it goes for $22... they minority ownership buyers seem to have been in a rent to buy arrangement, anyway, which explains the low price. All it is is that the minority shareholder becomes the majority...
> This sounds awfully high for the dial spot and signal
> coverage of a basic daytimer.
It is not a daytimer for the audience group, Asians, that it serves.
>
> I was under the impression that a price that was about 3
> times sales/billing was about median, or around 10 to 15
> times adjusted earnings.
18 to 19 times cash flow is pretty usual today. LA facilities pay a premium, as the market is one of $1.1 billion dollars, and a fultime AM is worth, stick value, over $20 million. This transaction was for an internal share transfer, not the whole station, which is worth more.
>
> Well there is one born every minute, but the seller of KFOX
> if they indeed get $22 Million should be thrilled.
They are buying at a discount due to family issues, I believe.... Chagal is reducing its share It was bought a few years ago from Mr. Levine for %30 million. Now a part of it goes for $22... they minority ownership buyers seem to have been in a rent to buy arrangement, anyway, which explains the low price. All it is is that the minority shareholder becomes the majority...
M
miamimadman
Guest
Jack Siegal/Chagal
Here was this small time Owner of KNTF/KNSE out of Ontario, selling Spots for $10, then made Millions turning over small stations. Jack then bought the killer 103.1 duo, KOCM Newport Beach and KSRF Santa Monica. Is this little tiny KFOX stick worth all that Money? I remember when Fred Sands picked up 50KW KBLA for 2 Million in 1990, and regreted it. He couldn't hear his station anywhere, then wound up selling it to the Korean's for $5 Mil!
> > This sounds awfully high for the dial spot and signal
> > coverage of a basic daytimer.
>
> It is not a daytimer for the audience group, Asians, that it
> serves.
> >
> > I was under the impression that a price that was about 3
> > times sales/billing was about median, or around 10 to 15
> > times adjusted earnings.
>
> 18 to 19 times cash flow is pretty usual today. LA
> facilities pay a premium, as the market is one of $1.1
> billion dollars, and a fultime AM is worth, stick value,
> over $20 million. This transaction was for an internal share
> transfer, not the whole station, which is worth more.
> >
> > Well there is one born every minute, but the seller of
> KFOX
> > if they indeed get $22 Million should be thrilled.
>
> They are buying at a discount due to family issues, I
> believe.... Chagal is reducing its share It was bought a few
> years ago from Mr. Levine for %30 million. Now a part of it
> goes for $22... they minority ownership buyers seem to have
> been in a rent to buy arrangement, anyway, which explains
> the low price. All it is is that the minority shareholder
> becomes the majority...
>
Here was this small time Owner of KNTF/KNSE out of Ontario, selling Spots for $10, then made Millions turning over small stations. Jack then bought the killer 103.1 duo, KOCM Newport Beach and KSRF Santa Monica. Is this little tiny KFOX stick worth all that Money? I remember when Fred Sands picked up 50KW KBLA for 2 Million in 1990, and regreted it. He couldn't hear his station anywhere, then wound up selling it to the Korean's for $5 Mil!
> > This sounds awfully high for the dial spot and signal
> > coverage of a basic daytimer.
>
> It is not a daytimer for the audience group, Asians, that it
> serves.
> >
> > I was under the impression that a price that was about 3
> > times sales/billing was about median, or around 10 to 15
> > times adjusted earnings.
>
> 18 to 19 times cash flow is pretty usual today. LA
> facilities pay a premium, as the market is one of $1.1
> billion dollars, and a fultime AM is worth, stick value,
> over $20 million. This transaction was for an internal share
> transfer, not the whole station, which is worth more.
> >
> > Well there is one born every minute, but the seller of
> KFOX
> > if they indeed get $22 Million should be thrilled.
>
> They are buying at a discount due to family issues, I
> believe.... Chagal is reducing its share It was bought a few
> years ago from Mr. Levine for %30 million. Now a part of it
> goes for $22... they minority ownership buyers seem to have
> been in a rent to buy arrangement, anyway, which explains
> the low price. All it is is that the minority shareholder
> becomes the majority...
>
Re: Jack Siegal/Chagal
> Here was this small time Owner of KNTF/KNSE out of Ontario,
> selling Spots for $10, then made Millions turning over
> small stations. Jack then bought the killer 103.1 duo, KOCM
> Newport Beach and KSRF Santa Monica. Is this little tiny
> KFOX stick worth all that Money? I remember when Fred Sands
> picked up 50KW KBLA for 2 Million in 1990, and regreted it.
> He couldn't hear his station anywhere, then wound up selling
> it to the Korean's for $5 Mil!
Sands bought 1580 in 1990 for $7.2 million, which was about right for the signal in that ears. Remeber, he sold 105.5 for $15 million in 1994, a station today worth maybe $90 million to $110 million.
The station was sold in 1998 to Radio Unica, for $21 million, and it was part of Arthur Liu's multi station deal two years ago, with an LA valuation of about $35 to $40 million.
KFOX, at 10 kw day and non directional is definitely worth what they paid for it a few hears ago. This year's transaction is simply a change of internal ownership. The station, on the market, is probably worth $35 to $40 million now. It is a beaustiful signal for its current purpose... which is to carry the programming they used to have on the 95.3 signals....which they tried to buy for about $60 million, when they went to SBS.
> Here was this small time Owner of KNTF/KNSE out of Ontario,
> selling Spots for $10, then made Millions turning over
> small stations. Jack then bought the killer 103.1 duo, KOCM
> Newport Beach and KSRF Santa Monica. Is this little tiny
> KFOX stick worth all that Money? I remember when Fred Sands
> picked up 50KW KBLA for 2 Million in 1990, and regreted it.
> He couldn't hear his station anywhere, then wound up selling
> it to the Korean's for $5 Mil!
Sands bought 1580 in 1990 for $7.2 million, which was about right for the signal in that ears. Remeber, he sold 105.5 for $15 million in 1994, a station today worth maybe $90 million to $110 million.
The station was sold in 1998 to Radio Unica, for $21 million, and it was part of Arthur Liu's multi station deal two years ago, with an LA valuation of about $35 to $40 million.
KFOX, at 10 kw day and non directional is definitely worth what they paid for it a few hears ago. This year's transaction is simply a change of internal ownership. The station, on the market, is probably worth $35 to $40 million now. It is a beaustiful signal for its current purpose... which is to carry the programming they used to have on the 95.3 signals....which they tried to buy for about $60 million, when they went to SBS.
M
miamimadman
Guest
Sands/Siegal/Chagal/Sinclair
You must be right. He leased it to the Koreans for 2 million a Year, and then sold it to Sinclair, who in turn sold to Radio Unica in 1998 for $21 million.
> The station was sold in 1998 to Radio Unica, for $21
> million, and it was part of Arthur Liu's multi station deal
> two years ago, with an LA valuation of about $35 to $40
> million.
>
> KFOX, at 10 kw day and non directional is definitely worth
> what they paid for it a few hears ago. This year's
> transaction is simply a change of internal ownership. The
> station, on the market, is probably worth $35 to $40 million
> now. It is a beaustiful signal for its current purpose...
> which is to carry the programming they used to have on the
> 95.3 signals....which they tried to buy for about $60
> million, when they went to SBS.
>
You must be right. He leased it to the Koreans for 2 million a Year, and then sold it to Sinclair, who in turn sold to Radio Unica in 1998 for $21 million.
> The station was sold in 1998 to Radio Unica, for $21
> million, and it was part of Arthur Liu's multi station deal
> two years ago, with an LA valuation of about $35 to $40
> million.
>
> KFOX, at 10 kw day and non directional is definitely worth
> what they paid for it a few hears ago. This year's
> transaction is simply a change of internal ownership. The
> station, on the market, is probably worth $35 to $40 million
> now. It is a beaustiful signal for its current purpose...
> which is to carry the programming they used to have on the
> 95.3 signals....which they tried to buy for about $60
> million, when they went to SBS.
>
Re: Jack Siegal/Chagal
> > Here was this small time Owner of KNTF/KNSE out of
> Ontario,
> > selling Spots for $10, then made Millions turning over
> > small stations. Jack then bought the killer 103.1 duo,
> KOCM
> > Newport Beach and KSRF Santa Monica. Is this little tiny
> > KFOX stick worth all that Money? I remember when Fred
> Sands
> > picked up 50KW KBLA for 2 Million in 1990, and regreted
> it.
> > He couldn't hear his station anywhere, then wound up
> selling
> > it to the Korean's for $5 Mil!
>
> Sands bought 1580 in 1990 for $7.2 million, which was about
> right for the signal in that ears. Remeber, he sold 105.5
> for $15 million in 1994, a station today worth maybe $90
> million to $110 million.
>
> The station was sold in 1998 to Radio Unica, for $21
> million, and it was part of Arthur Liu's multi station deal
> two years ago, with an LA valuation of about $35 to $40
> million.
>
> KFOX, at 10 kw day and non directional is definitely worth
> what they paid for it a few hears ago. This year's
> transaction is simply a change of internal ownership. The
> station, on the market, is probably worth $35 to $40 million
> now. It is a beaustiful signal for its current purpose...
> which is to carry the programming they used to have on the
> 95.3 signals....which they tried to buy for about $60
> million, when they went to SBS.
>
David:
I would have to think with over $20 million/year in revenue that 105.5 is worth somewhere in the range of $150-$200 million. Obviously, if you throw in KBUA and KEBN - it would probably have to be between $250 and $300 million.
> > Here was this small time Owner of KNTF/KNSE out of
> Ontario,
> > selling Spots for $10, then made Millions turning over
> > small stations. Jack then bought the killer 103.1 duo,
> KOCM
> > Newport Beach and KSRF Santa Monica. Is this little tiny
> > KFOX stick worth all that Money? I remember when Fred
> Sands
> > picked up 50KW KBLA for 2 Million in 1990, and regreted
> it.
> > He couldn't hear his station anywhere, then wound up
> selling
> > it to the Korean's for $5 Mil!
>
> Sands bought 1580 in 1990 for $7.2 million, which was about
> right for the signal in that ears. Remeber, he sold 105.5
> for $15 million in 1994, a station today worth maybe $90
> million to $110 million.
>
> The station was sold in 1998 to Radio Unica, for $21
> million, and it was part of Arthur Liu's multi station deal
> two years ago, with an LA valuation of about $35 to $40
> million.
>
> KFOX, at 10 kw day and non directional is definitely worth
> what they paid for it a few hears ago. This year's
> transaction is simply a change of internal ownership. The
> station, on the market, is probably worth $35 to $40 million
> now. It is a beaustiful signal for its current purpose...
> which is to carry the programming they used to have on the
> 95.3 signals....which they tried to buy for about $60
> million, when they went to SBS.
>
David:
I would have to think with over $20 million/year in revenue that 105.5 is worth somewhere in the range of $150-$200 million. Obviously, if you throw in KBUA and KEBN - it would probably have to be between $250 and $300 million.
Re: Jack Siegal/Chagal
>>
> David:
>
> I would have to think with over $20 million/year in revenue
> that 105.5 is worth somewhere in the range of $150-$200
> million. Obviously, if you throw in KBUA and KEBN - it would
> probably have to be between $250 and $300 million.
Actually, the KBUE signals have over $25 million in revenues, but they are still a collection of A's. Separately, they are probably worth $120 for 105.5, and $60 for the OVC signal and, maybe, $30 for the SFV signal. With luck, together, $200.
They are only of vaue as long as they do not get challenged by a full LA signal. They can not compete in English they way they do in Spanish, so there is a discount based on vulnerability there. At present, they are bing whacked badly by KXOL, which will bring th eratings and billing down significantly in the Fall book, and they are squeezed from the high side by other stations like Recuerdo, for the Mexican music positon.
>
>>
> David:
>
> I would have to think with over $20 million/year in revenue
> that 105.5 is worth somewhere in the range of $150-$200
> million. Obviously, if you throw in KBUA and KEBN - it would
> probably have to be between $250 and $300 million.
Actually, the KBUE signals have over $25 million in revenues, but they are still a collection of A's. Separately, they are probably worth $120 for 105.5, and $60 for the OVC signal and, maybe, $30 for the SFV signal. With luck, together, $200.
They are only of vaue as long as they do not get challenged by a full LA signal. They can not compete in English they way they do in Spanish, so there is a discount based on vulnerability there. At present, they are bing whacked badly by KXOL, which will bring th eratings and billing down significantly in the Fall book, and they are squeezed from the high side by other stations like Recuerdo, for the Mexican music positon.
>
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