Just fodder for thought as the bell tolls for CBS/Buffalo. From R&R:
"Analysts' Takes On CBS, Entercom And Satellite Radio
Aug. 25, 2006
By Jeffrey Yorke
Bear, Stearns media analyst Victor Miller likes the CBS sale of two San Antonio stations to Border Media Partners because the “multiple looks impressive.”
“We estimate that the two stations generated approximately $9 million in annual revenues and slightly less than $1.5 million in cash flows, implying a purchase multiple of over 30x,” Miller wrote in a Thursday (Aug. 24) client note. He also pointed out that CBS’ basis (what the company paid for the station) was relatively low and that it faces a stiff tax bill on gains that will be the multiple down but still over 20x. He notes that with the overall success of sales CBS has already announced this week, “it is possible that CBS may decide to sell stations in other non-core markets.”
"Analysts' Takes On CBS, Entercom And Satellite Radio
Aug. 25, 2006
By Jeffrey Yorke
Bear, Stearns media analyst Victor Miller likes the CBS sale of two San Antonio stations to Border Media Partners because the “multiple looks impressive.”
“We estimate that the two stations generated approximately $9 million in annual revenues and slightly less than $1.5 million in cash flows, implying a purchase multiple of over 30x,” Miller wrote in a Thursday (Aug. 24) client note. He also pointed out that CBS’ basis (what the company paid for the station) was relatively low and that it faces a stiff tax bill on gains that will be the multiple down but still over 20x. He notes that with the overall success of sales CBS has already announced this week, “it is possible that CBS may decide to sell stations in other non-core markets.”