KFWB up for sale

[michael hagerty]

Wanting something and being able to afford it are two different things. Salem has been hit by the same financial crisis that has hurt the rest of radio. Their top people have taken pay cuts, they've laid off staff, and so I doubt they're in any position to buy an LA station, regardless of how it might fit into their plan.

Except...if David's right (and he usually is about this kind of stuff) in his post on page 2 that KFWB "has no cash flow"...and sales are based on a multiple of cash flow...then KFWB might sell for what a lot of radio execs paid for their house...

What do you think, David? If it sold today, as is....would it break $10 million?

 

[ercjncpr]

@David, KFWB fits Salem's usual plan of attack. They seem to purchase former Top 40s with the calls intact (NYC= WMCA, Philly=WFIL).

Don't forget KGU in Honolulu

 

[DrAkbar]

IHR comes to mind given their strong presence in the Southwest http://www.ihradio.org/stations and the sizable Hispanic & Anglo Catholic population. A couple three years back they paid beau coup bucks for KOIT-AM 12~Sixty (formerly KYA), which was a 100% simulcast of KOIT-FM and no cash flow as a stand alone. IHR recently paid $1m to bring a dark and marginal Phoenix AM station back to life... no cash flow..no studios..and towers on leased land. Nurse Jeff and I think it's a possible match given knowing the depth of their pockets!

 

[davideduardo]

Wanting something and being able to afford it are two different things. Salem has been hit by the same financial crisis that has hurt the rest of radio. Their top people have taken pay cuts, they've laid off staff, and so I doubt they're in any position to buy an LA station, regardless of how it might fit into their plan.

Except...if David's right (and he usually is about this kind of stuff) in his post on page 2 that KFWB "has no cash flow"...and sales are based on a multiple of cash flow...then KFWB might sell for what a lot of radio execs paid for their house...

What do you think, David? If it sold today, as is....would it break $10 million?

My guess is that the sticker says $30 and the station will go for around $20. I don't think there is land involved, as IIRC they are on one of the KLAC towers.

 

[davideduardo]

IHR comes to mind given their strong presence in the Southwest http://www.ihradio.org/stations and the sizable Hispanic & Anglo Catholic population. A couple three years back they paid beau coup bucks for KOIT-AM 12~Sixty (formerly KYA), which was a 100% simulcast of KOIT-FM and no cash flow as a stand alone. IHR recently paid $1m to bring a dark and marginal Phoenix AM station back to life... no cash flow..no studios..and towers on leased land. Nurse Jeff and I think it's a possible match given knowing the depth of their pockets!

I'd forgotten about this group... and didn't they buy something in Fresno, too?

This would make a lot of sense.

 

[michael hagerty]

Wanting something and being able to afford it are two different things. Salem has been hit by the same financial crisis that has hurt the rest of radio. Their top people have taken pay cuts, they've laid off staff, and so I doubt they're in any position to buy an LA station, regardless of how it might fit into their plan.

Except...if David's right (and he usually is about this kind of stuff) in his post on page 2 that KFWB "has no cash flow"...and sales are based on a multiple of cash flow...then KFWB might sell for what a lot of radio execs paid for their house...

What do you think, David? If it sold today, as is....would it break $10 million?

My guess is that the sticker says $30 and the station will go for around $20. I don't think there is land involved, as IIRC they are on one of the KLAC towers.

At that price, I'm with Dr. Akbar...IHR. Buy it, put a studio that's really just a satellite downlink in some cheap office space, pay six employees and the power bill and let the donations take care of the rest.