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More Nassau cutbacks
- Thread starter NHRadio
- Start date
really,I like Lexy Luthor better 
Some people may not agree, but I am not pure evil
Some people may not agree, but I am not pure evil
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splicer38
Guest
NHRadio said:I barely know PBP and don't think she's pure evil. She sounds good on ZID. I'd love to know Splicer's secret identity, though. He/She claims to not be a Nassau employee so that narrows it down a bit. I'd be grateful if you sent me a PM...I promise to keep your secret.
Only the Shadow knows! I will tell you I don't know Eric or PBP. Not Nassau... now or ever. Just an interested bystander watching radio continue to devalue day by day. If these groups are going to sell they better do it fast before all value is lost and other larger companies like Clear Channel start flooding the market with their junk. That's what I see and it's sad.
The boys at Sconnix got out at the perfect time... Think they got $6M. Too bad Jeff Fisher didn't. Value of his group is like the mansion on the hill devaluing because everyone around him is going bankrupt and being forclosed on! What's it worth now? I would think 4 years ago he could have gotten $6M. If you see the purchase stories from around the country and what Nassau is going, through maybe a little over a million? 2 max? Good thing he's happy and not ready to retire. maybe the value comes back in a few years. Maybe ad another stick and keep kickin' Butt! He's a great operator and we need more like him.
Mr. Scott What is your EM? I'd be happy to talk to you. I also meant what I said. I like your work.
I don't remember exactly what Telemedia gave Sconnix for LNH/EMJ/BHG but it was more than its worth now, thats for sure. Are station values really falling or are they just recovering to "normal" after the irrational exuberance of 1996-2006?
Station values, as you probably know, are usually a function of cash flow. At their peak, 9 or 10 times trailing cash flow was considered normal especially in large markets. Now, you're looking at 4 or 5 times a much smaller cash flow number. Example:
A Class A licensed to Alameda, CA just sold for $6.5 million. It's owners bought it for 32 or 33 million just a few years ago.
Ouch.
PS-Splicer, thanks for the kind words.
Station values, as you probably know, are usually a function of cash flow. At their peak, 9 or 10 times trailing cash flow was considered normal especially in large markets. Now, you're looking at 4 or 5 times a much smaller cash flow number. Example:
A Class A licensed to Alameda, CA just sold for $6.5 million. It's owners bought it for 32 or 33 million just a few years ago.
Ouch.
PS-Splicer, thanks for the kind words.
splicer38 said:
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splicer38
Guest
WLNH/WEMJ/WBHG were sold to Nassau Broadcast Holdings direct from WLNH Radio Inc. in Jauary 2004 for $5M. Transfer approved by FCC on 3/24/04. The acquired WLKZ from Telemedia as part of the WNNH/WHOB/WLKZ deal for around $12M in 2004. Values now?
NH Radio: How do you figure out cash flow when all of these stations are co-habitating ans sharing costs? How do you value a dark station? Selling 99.1, 102.3 and 101.5 creates an unknown value. I guess you could look at top line sales and use a multiplier for the ones still on the air. I would not want to be the seller in this deal. Hard to justify the sales price of the 3 they want to move. maybe look at the deals nationally, try to figure out what the value of the 3 were in those deals above and use an average "haircut". That sounds even more comlicated! For instance... IF you assaign the following past values: 102.3 $1M, 99.1 was $2M and 101.5 1M and then use Alameda as a benchmark which was 20% of value... Those 3 would be worth 800K. Hard to beleive. Again, I would not want to be the seller!
Gadon said:
NH Radio: How do you figure out cash flow when all of these stations are co-habitating ans sharing costs? How do you value a dark station? Selling 99.1, 102.3 and 101.5 creates an unknown value. I guess you could look at top line sales and use a multiplier for the ones still on the air. I would not want to be the seller in this deal. Hard to justify the sales price of the 3 they want to move. maybe look at the deals nationally, try to figure out what the value of the 3 were in those deals above and use an average "haircut". That sounds even more comlicated! For instance... IF you assaign the following past values: 102.3 $1M, 99.1 was $2M and 101.5 1M and then use Alameda as a benchmark which was 20% of value... Those 3 would be worth 800K. Hard to beleive. Again, I would not want to be the seller!
[/quote]NHRadio said:
Fairly easily actually. AFAIK, revenue is booked on a per station basis anyway, and each station has its own costs like utilities, music licensing, sales commissions, engineering, etc. Some companies charge a jock's salary to one station, some share the expense.
Any shared costs like labor, insurance, rent/mortgage, and G&A are allocated to each station or business unit. The exact percentages will vary from cluster to cluster.
Anyone doing due diligence should be able to see cash flow broken out by station. I have no idea how one values a dark station...my guess is kind of like a used car...it's worth what someone wishes to pay for it.
Any shared costs like labor, insurance, rent/mortgage, and G&A are allocated to each station or business unit. The exact percentages will vary from cluster to cluster.
Anyone doing due diligence should be able to see cash flow broken out by station. I have no idea how one values a dark station...my guess is kind of like a used car...it's worth what someone wishes to pay for it.
splicer38 said:
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splicer38
Guest
If it were only that easy! You would assume to run them the same way and in the same location? How about the jocks that voice on more than one station? Seperately the expenses are going to be higher. OK when you buy WNNH for instance you are going to hire someone at 1/3 the salary of Brian Battle to do afternoon drive? You have to create a whole new set of projections based upon a new location with new staff. I don't see anyone taking on the Hooksett location for 2 stations. Talk about a cash flow killer! Value of 102.3? That signal never really caught on anyway no matter who had it. Maybe 100-200K? I don't know.
Good luck figuring this out! Let's see who ends up with them, what they pay for them and who finances the deal(s). They might break them up and find they can get more for them individually rather than as a package. But who would do that and go in as a stand alone? It should be interesting.
Good luck figuring this out! Let's see who ends up with them, what they pay for them and who finances the deal(s). They might break them up and find they can get more for them individually rather than as a package. But who would do that and go in as a stand alone? It should be interesting.
NHRadio said:
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splicer38
Guest
Too quiet out there on the Nassau deals. Something must be happening. All I've heard is that the ones nassau is keeping are moving to Laconia/Gilford. That's it! Wow, theres a news flash! So they'll have 98.3, 93.3, 105.5, 104.9 and 1490AM out of Village West? Do they have enough room for that? I guess so. What's happening with the Hooksett studios? Goldman Sachs has not been approved yet by the FCC so they are still on the sidelines. Will the deals have to wait for GS to take control? Is there anyone out there bidding on these things? Interesting times!
I doubt JYY will move to Gilford, and you forgot WWHQ (at least until it sells out of the trust). If (and its a big if) they relocate JYY, NNH and FNQ will probably stay together.
I've not heard anything on this. In fact, an employee recently denied it. I guess we'll see.
I've not heard anything on this. In fact, an employee recently denied it. I guess we'll see.
splicer38 said:
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splicer38
Guest
They are moving everything left after the sale to Gilford except Nashua. JYY and NHW will go. I bleive the moving trucks have already been ordered. Could be another middle of the night, Baltimore to Indianapolis Colts deal!
They have to move FNQ south. Main St. Nashua or maybe 55 Lakes street again!
They have to move FNQ south. Main St. Nashua or maybe 55 Lakes street again!
It's WTPL, and I thought 102.3 was in the process of going to Andrew Sumereau's Birch Broadcasting... not to mention Vox already owned WWHK. Aren't Jeff and Bruce still buddy-buddy?
?
Seems it would be 102.3 (owned by Vox) 99.1 & 101.5. These are the 2 placed in trust.
Would love to be the law firm putting this puzzle together. $$$$
Seems it would be 102.3 (owned by Vox) 99.1 & 101.5. These are the 2 placed in trust.
Would love to be the law firm putting this puzzle together. $$$$
ThatGuyOnTheRadio said:
I don't think Shapiro has a financial interest in Vox any longer. I don't Birch was able to come up with the scratch to buy 102.3 and it makes more since for JS to own four than for someone to come in and buy just 102.3, a rather weak signal. Yes, 107.7 is WTPL-FM
WLKZ would compliment WTPL nicely, allow The Pulse to better cover the market.
http://www.radio-locator.com/cgi-bin/pat?call=WLKZ&service=FM&status=L&hours=U
http://www.radio-locator.com/cgi-bin/pat?call=WTPL&service=FM&status=L&hours=U
http://www.radio-locator.com/cgi-bin/pat?call=WLKZ&service=FM&status=L&hours=U
http://www.radio-locator.com/cgi-bin/pat?call=WTPL&service=FM&status=L&hours=U
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splicer38
Guest
Mr. Shaprio would be a good person to take over those stations. He understands good local radio. The trust that was set up was for 101.5FM in Meredith and 99.1FM in Heniker. He would also get 102.3FM Concord if he got the package Nassau was peddling.
WLKZ resides at 104.9FM and that was not offered. So, Mr. Shapiro would have 107.7 in Hillsborough, 101.5 Meredith, 99.1 Heniker and 102.3 in Conocrd. If he also got the facility in Hooksett that would make a nice place for 3 of the 4 unless he was just going to simulcast 107.7 in the lakes region on 101.5. Then all 4 would go from there.
Wonder how Peter St. James feels about his prospective morning commute now!? He's always said he hates going south of the "Hooksett Tolls".
Wonder if he can get an STL shot to Concord from Hooksett or any of the other sights like Gould Hill or Pats Peak? Would that add to his costs or would there be savings with a consilidation to make it work? I heard it's pretty expensive to operate from there with Utilities, phone lines and the rent.
Time will tell. Nothing official yet.
If it's true it's too bad that Mr. Schmit didn't get 99.1 back. I heard he was in the mix as was Mr. Fisher up in Franklin and Mr. Silverberg in Haverhill. all good operators. We need more like them.
WLKZ resides at 104.9FM and that was not offered. So, Mr. Shapiro would have 107.7 in Hillsborough, 101.5 Meredith, 99.1 Heniker and 102.3 in Conocrd. If he also got the facility in Hooksett that would make a nice place for 3 of the 4 unless he was just going to simulcast 107.7 in the lakes region on 101.5. Then all 4 would go from there.
Wonder how Peter St. James feels about his prospective morning commute now!? He's always said he hates going south of the "Hooksett Tolls".
Wonder if he can get an STL shot to Concord from Hooksett or any of the other sights like Gould Hill or Pats Peak? Would that add to his costs or would there be savings with a consilidation to make it work? I heard it's pretty expensive to operate from there with Utilities, phone lines and the rent.
Time will tell. Nothing official yet.
If it's true it's too bad that Mr. Schmit didn't get 99.1 back. I heard he was in the mix as was Mr. Fisher up in Franklin and Mr. Silverberg in Haverhill. all good operators. We need more like them.
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