The R&B oldies combo on the 93.5 co-channels in Redondo Beach & Ontario is sold by Magic Broadcasting to the new SoCal935 LLC at a deep discount from their purchase price 6 years ago. SoCal935 principals include Warren Chang and John Hearne, and they also have a financial ownership stake in recent Riverside-market move-in KQIE (104.7). I thought there already was a financial relationship between 93.5 & 104.7, but this news certainly confirms that to now be true. What does this mean for Roy Laughlin, who was a partner in Magic and had touted its success as Southern California's Superstation in multiple updates into Don Barrett's LARadio.com over the years?
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Magic Sells KDAY & KDEY to SoCal935 for $35 Million
- Thread starter david
- Start date
Wow, what a deep discount. R-I is reporting Magic's purchase price as $120 million, but I recall it being $150 million (?) At any rate this sale represents a loss to Don McCoy's Magic of at least $85 million. He has done well thru the years with his sale of 96.1 San Jacinto for $25 milllion and $55 million on a move in to Atlanta several years ago. Any guess what "Gold Coast" (John Hearn etc) will do with the 93.5's ?
Roy must be part of that deal, same as the 104.7's
have you ever known a station sale to happen that doesn't involve a format change?
What format could possibly work on 93.5?
ajc_trw said:
It was off for a few hours - back on now
M
musicfan101
Guest
The one that's on it right now!emailfailed said:
@Buckethead: Have you ever known a station to flip formats that's getting the highest ratings possible on a class A station??
Have you ever known a station sale to happen when the station is making money?
But hell, if they are then maybe it's a good deal all the way around.
I just figured they wouldn't want to compete with themselves in the IE.
But hell, if they are then maybe it's a good deal all the way around.
I just figured they wouldn't want to compete with themselves in the IE.
Buckethead said:
Yes... most stations sold have been money makers. That's why the pricing model is a multiple of cash flow (or EBITDA) meaning the price is determined to a great extent by the amount of money being made. Financing is really hard to get for money losers, now and in previous years. A station without profits is often said to be sold for the "stick value" which is sort of the price of entry into a market but with no guaranteed format or income.
e-dawg said:
They should go back to that void. They had a 0.8 when they did that, now they have near or over a 2.0 share in demo with this... let's try that one again.
back in the day hits i think they will keep it the same format since power 106 is not playing olskool anymore. only focusing on new artist today.
B
Big E
Guest
Can anything be done to boost the signal of 93.5? I thinks thats the only way it can make more revenue, then maybe they can finally have some jocks on.
Button Pusher said:
They did that when they moved a couple of years ago from the KNX tower to the Baldwin Hills. Their own Ontario station puts a limit on any eastward movement, and, after that, we get into all the issues of adjacent channels and such.
radiojomo said:
That's not a discounted price. It's Radio 2010.
Help me understand why Magic wanted out if it was a positive cash-flow. Especially since its not an upfront deal.
Only 5 million up front.
Only 5 million up front.
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