On the Radio-Info.com Central California board is a discussion of the possible sale of KSTN AM & FM by the Larue family...
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KSTN/Stockton ... Sold?
- Thread starter BossRadioDJ
- Start date
BossRadioDJ said:
It's not a possible sale...it's done, pending FCC approval (papers filed) and consumation.
With apologies for the cross-post -- is Stockton part of the Sacramento board, or part of the Central California board? -- but the sale to Independence Media has officially fallen through, and KSTN AM & FM are remaining under LaRue family ownership for now.
Newsperson responds:
Bossradiodj,
Thanks for the update as everyone was wouldering if they were goign to close on the purchase.
Since it was around 24M I can see way their financing dried up.
When was the offical end?
Newsperson
Bossradiodj,
Thanks for the update as everyone was wouldering if they were goign to close on the purchase.
Since it was around 24M I can see way their financing dried up.
When was the offical end?
Newsperson
Newsperson: Its a shame your friend in the Reno/Sparks area with the AM Construction Permit can't find a way to buy the combo at a reduced price in this down market. What would you think he would program on the combo?
Newsperson responds:
radiostarone;
The problem with KSTN AM & FM is that you have a brother who would hang his head in sorrow if he was forced to put millions in his pocket and a sister who will force a sale! The other problem is that they expect far more than it's worth.
I would imagine that up in Reno there would better deals for a second AM station except I don't know who would be selling.
Any ideas of what would be available?
Newsperson
radiostarone;
The problem with KSTN AM & FM is that you have a brother who would hang his head in sorrow if he was forced to put millions in his pocket and a sister who will force a sale! The other problem is that they expect far more than it's worth.
I would imagine that up in Reno there would better deals for a second AM station except I don't know who would be selling.
Any ideas of what would be available?
Newsperson
Newsperson:
Do you really think (keeping in mind the current state of decline in the economy) that there aren't going to be some really drastic station fire sales in the next two years? I expect that in the short term we will see some percentage of the total stations out there that can't be given away for free. Those stations will be just turned off and the licenses turned back in to the FCC. I believe that the panic is going to be staggering to many watching the industry.
You know what I do for a living and I've got to tell you its getting very scary watching the decline in the workload. I thank the stars above for everyday that I get to keep my job. I feel for all those that have or will be caught up in this ecomomic mess that is catching up with all the people working out there. Its going to get a lot worse before it gets better and for all those thinking that Mister Obama is going to make it all better in the short term are going to be very very disappointed.
I would wager that the La Rue's will be the owners of these stations for a lot longer plus they will benifit from the fact that the stations are paid for and if they keep taking care of them the stations will benifit the family for a long time to come. Now is the time to redouble the effort put into making them successful not for selling.
Do you really think (keeping in mind the current state of decline in the economy) that there aren't going to be some really drastic station fire sales in the next two years? I expect that in the short term we will see some percentage of the total stations out there that can't be given away for free. Those stations will be just turned off and the licenses turned back in to the FCC. I believe that the panic is going to be staggering to many watching the industry.
You know what I do for a living and I've got to tell you its getting very scary watching the decline in the workload. I thank the stars above for everyday that I get to keep my job. I feel for all those that have or will be caught up in this ecomomic mess that is catching up with all the people working out there. Its going to get a lot worse before it gets better and for all those thinking that Mister Obama is going to make it all better in the short term are going to be very very disappointed.
I would wager that the La Rue's will be the owners of these stations for a lot longer plus they will benifit from the fact that the stations are paid for and if they keep taking care of them the stations will benifit the family for a long time to come. Now is the time to redouble the effort put into making them successful not for selling.
RadioStarOne said:
I agree...this is going to be a very long-term undoing of damage.
RadioStarOne said:
The LaRue's seem to be doing well with their FM; it's the AM that needs some TLC and some
promotion, especially the latter since they have added some local sports interests of late...
--jay
Newsperson responds:
There will be no vaid reason to turn in a license or giveaway a station especially if it's part of a group. However there could be some daytimers and small FMs in some regions that may go dark.
In the west there just aren't any bargins.
The LaRue's will never see an offer of 24M again. In Denver CBS just sold 3-FMs for 19.5M, certainly a better value.
I wounder how much the penalty for default that the buyer(of KSTN) lost for not performing?
Newsperson
There will be no vaid reason to turn in a license or giveaway a station especially if it's part of a group. However there could be some daytimers and small FMs in some regions that may go dark.
In the west there just aren't any bargins.
The LaRue's will never see an offer of 24M again. In Denver CBS just sold 3-FMs for 19.5M, certainly a better value.
I wounder how much the penalty for default that the buyer(of KSTN) lost for not performing?
Newsperson
Maybe the owners thought the sale was a slam-dunk and didn't include a breakup fee. Your right maybe there aren't any bargins out there "yet." Keep looking I really believe they are coming.
Newsperson responds:
After my last post I decided to look up the KSTN transfer application. It turns out that the stockholders were to receive $1,212,500.00 some which they got at signing and the balance was placed into escrow. That's a great deal, sell your station and make a million and keep it!
As far as the deals go, Since CBS trade 93.7 Roseville we don't have a price to go by. But if you're buying today and don't have anything to trade the seller has to really drop down its value and i'm still waiting for that.
In residential real estate we have seen the big drop in prices, except offices and retail shops are still staying up there.
I heard the Truckee FM was asking 1.2 to 1.5 M. Their only response was from a very quailfied buyer who places the value around 500K and says they do not want to buy now!
The old KPTL 1300 in Carson City has been asking 500K and one buyer pursued it hard although the deal fell through.
Closer to Sacrmento I just can't think of any deals at all, unless Clear Channel wants to unload the Pollock Pines Class A FM?
Any thoughts?
Newsperson
After my last post I decided to look up the KSTN transfer application. It turns out that the stockholders were to receive $1,212,500.00 some which they got at signing and the balance was placed into escrow. That's a great deal, sell your station and make a million and keep it!
As far as the deals go, Since CBS trade 93.7 Roseville we don't have a price to go by. But if you're buying today and don't have anything to trade the seller has to really drop down its value and i'm still waiting for that.
In residential real estate we have seen the big drop in prices, except offices and retail shops are still staying up there.
I heard the Truckee FM was asking 1.2 to 1.5 M. Their only response was from a very quailfied buyer who places the value around 500K and says they do not want to buy now!
The old KPTL 1300 in Carson City has been asking 500K and one buyer pursued it hard although the deal fell through.
Closer to Sacrmento I just can't think of any deals at all, unless Clear Channel wants to unload the Pollock Pines Class A FM?
Any thoughts?
Newsperson
newsperson said:
How about EMF unloading the potentially redundant 99.5 (unless they use it for Air 1). They already have 89.7.
newsperson said:
AM 1370 and FM 100.3 in Quincy have been dark for about 2 years. I didn't pay attention to exactly when they notified the FCC that they were off or whether they said they were on again, but they've been silent every time I've been through there. I wonder what their public files look like.
Dave B.
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