Radio One Acquires Cox Houston

[MarkW]

My mistake regarding 103.7's current programming.

Audacy has too much debt. Only way it would be able to make a play for 97.1 would be to trade another station for it.

They would use a portion of the cash proceeds from the WTSS / WLFP sales to fund the purchase of 97.1 in the scenario I laid out.

Think about the other FMs Audacy owns. They’re all better signals than 97.1.

I don't see how that is relevant.

Adding 97.1 - if done at the right price - could complement 610 nicely, much like how 96.7 complements 1310 in North Texas.

 

[Kent]

They would use a portion of the cash proceeds from the WTSS / WLFP sales to fund the purchase of 97.1 in the scenario I laid out.

They can’t. They needed that money to avoid tripping a covenant.

If anything, Audacy is probably disappointed in what it got for WLFP/WTSS. If the rumored second cog in the transaction hadn’t been derailed, it would've seen a lot more cash.

 

[MarkW]

Spending a few million of those proceeds to buy 97.1 might make no difference in terms of whether or not they remain in compliance of the net leverage ratio covenant.

I agree with you Audacy acquiring 97.1 is unlikely, but I wouldn't rule it out completely.

 

[gimmethemoldies]

I don't see how that is relevant.

Adding 97.1 - if done at the right price - could complement 610 nicely, much like how 96.7 complements 1310 in North Texas.

Maybe I'm missing something, but I'd think that if you want a successful FM sports station, you'd want something that covers the city better and isn't a rimshot. KILT is already kind of not doing great in the ratings, so I don't think 97.1 would be their best shot at getting more people to listen to it. Am I wrong?

 

[Deleted member 108832]

Adding 97.1 - if done at the right price - could complement 610 nicely, much like how 96.7 complements 1310 in North Texas.

Let me add an extra point to what Kent has already addressed. KILT and KILT-FM is/are the flagship broadcast stations of the Texans. Your scenario takes the games, regardless of how poorly the hometown team tends to play, off of the city grade 100.3 signal, and places it on a signal more suited to Huntsville. That's not going to fly with Cal McNair, the in town (or south of town) Texan fan, or those broadcasters up here north of you, that have secured the rights to air the Texans for a lot of the same areas that KTHT covers. The situation with the Ticket is so much different in DFW, Mark. 96.7 was already in the cluster. Nothing had to be purchased to send 1310's format to the FM, whether that be to the current Flower Mound licensed simulcast, or the Sanger one before that.

 

[exdjted]

Spending a few million of those proceeds to buy 97.1 might make no difference in terms of whether or not they remain in compliance of the net leverage ratio covenant.

I agree with you Audacy acquiring 97.1 is unlikely, but I wouldn't rule it out completely.

Audacy isn't buying lunch for guests now, much less paying out real money for stations. Ain't happening.

 

[gr8oldies]

They can’t. They needed that money to avoid tripping a covenant.

If anything, Audacy is probably disappointed in what it got for WLFP/WTSS. If the rumored second cog in the transaction hadn’t been derailed, it would've seen a lot more cash.

Maybe the FCC is more stringent than it used to be, but there were stations in the Aloha Trust for 15 years. 2 stations in Dayton, Ohio (one in a very similar situation to KTHT, a distant northern rimshot even if it was a smaller market than Houston) was finally donated to an educational shell non-profit for Salem. Who says these stations can't be in the trust and still run (but not "really") by Urban One for the foreseeable future?

 

[gimmethemoldies]

Audacy isn't buying lunch for guests now, much less paying out real money for stations. Ain't happening.

Which reminds me, one thing I didn't account for was that Audacy's stock price is around a dime right now. Cumulus and iHeart are around 3 bucks or so in comparison. So yeah, KTHT really doesn't seem like something Audacy would want to buy.

Maybe the FCC is more stringent than it used to be, but there were stations in the Aloha Trust for 15 years. 2 stations in Dayton, Ohio (one in a very similar situation to KTHT, a distant northern rimshot even if it was a smaller market than Houston) was finally donated to an educational shell non-profit for Salem. Who says these stations can't be in the trust and still run (but not "really") by Urban One for the foreseeable future?

There are already plans for KROI to go to a minority-owned broadcaster. Could be a possibility for KTHT, but probably not since they're apparently talking with interested buyers for it.

 

[b-turner]

From a business angle, selling KROI to a minority is a good decision even if it's for pennies on the dollar compared to a non-minority offer. The reality is it's an ugly loss and selling to a minority makes it smell like a rose. The FCC will love it. The money people will feel good about it and even those with invested dollars will like it much more than a straight loss. Remember 72.5 million was paid for KROI less than 2 decades ago. Sure, you can write off a lot but they this will make them look good and they'll be respected for it.

 

[gimmethemoldies]

The reality is it's an ugly loss

Yeah and in fact, I don't think KROI has had a single format that was successful in the long run under Radio One's ownership:
- La Mera Mera failed
- I guess Praise failed (?)
- News 92 failed
- Boom was a hit, then failed
- Radio Now failed
- Praise II is failing

Personally, I hope the new owners are a Black-owned company that turn it into a jazz station.

 

[Mrtejano]

Personally, I hope the new owners are a Black-owned company that turn it into a jazz station.

Jazz? What’s the fan base of Jazz here I. houston? Doesnt KTSU play Lots of Jazz already? We had a Jazz station and it flipped. Why? I don’t know, I was still a kid when it was on air. 95.7 THE WAVE then it moved to 95.7 HD2 then to 96.5 HD 2 or 3.


99.1 also had JAZZ on one of their HD sub-channels

 

[MarkW]

Your scenario takes the games, regardless of how poorly the hometown team tends to play, off of the city grade 100.3 signal...

It's not terribly uncommon for NFL games to be carried on multiple signals in the same market. Happens in Cleveland, Washington, Green Bay, Atlanta (I think), Miami, Denver, Cincinnati and probably other cities I am overlooking.

 

[Ryan Williams]

I really don't think 97.1 is going to fetch as much as most think, and that 92.1 will likely have the larger price tag attached.

97.1 has more than 2.7 million people in the 60 dBu. Even at just $2 per pop that is $5.4 million. That's going to be a pretty big swing for anyone who isn't already a major market owner.

To be sure, 92.1 is the better of the two signals, but 97.1 isn't terrible and in my experience is a much better market-wide rimshot than the Liberty County ones such as 93.3, 97.5 (the worst one), 98.5, 100.7, 103.7, and 107.9. The last two of those rimshots that changed hands both went for more than 5 million.

 

[gimmethemoldies]

Jazz? What’s the fan base of Jazz here I. houston? Doesnt KTSU play Lots of Jazz already? We had a Jazz station and it flipped. Why? I don’t know, I was still a kid when it was on air. 95.7 THE WAVE then it moved to 95.7 HD2 then to 96.5 HD 2 or 3.


99.1 also had JAZZ on one of their HD sub-channels

I don't know. All I can tell you is I like jazz. It doesn't translate into profits, but a guy can dream right? Yes, KTSU plays jazz, and I should listen to it more (being in college, I don't listen to the radio as much as I used to because of Spotify, and when I do, it's usually Oldies 107.5 HD2), but it's not 100% jazz. My dream version of 92.1 would be jazz but with a better playlist with more classic artists like Ella Fitzgerald and John Coltrane (maybe 90.9 plays these, but I don't remember hearing many if any classic artists in the times that I've listened to 90.9).

Or the new owners could just bring classical back. I'd like that too.

 

[Kent]

Maybe the FCC is more stringent than it used to be, but there were stations in the Aloha Trust for 15 years. 2 stations in Dayton, Ohio (one in a very similar situation to KTHT, a distant northern rimshot even if it was a smaller market than Houston) was finally donated to an educational shell non-profit for Salem. Who says these stations can't be in the trust and still run (but not "really") by Urban One for the foreseeable future?

The Last Bastion Trust Citadel created to accommodate the ABC deal still has stations around Little Rock.

The FCC has been trying to crack down on trusts and has imposed ”shot clocks” on those deals since. That's not to say the current FCC would do the same things, but a Democratic FCC is more likely to push divestitures than a Republican one.

 

[MarkW]

Yeah and in fact, I don't think KROI has had a single format that was successful in the long run under Radio One's ownership:
- La Mera Mera failed
- I guess Praise failed (?)
- News 92 failed
- Boom was a hit, then failed
- Radio Now failed
- Praise II is failing

It's too bad News 92 failed. Of the various all-news launches from that era (there were five in total), I thought that one and All News 106.7 in Atlanta sounded the best.

None of the all-news newbies survived. FM News 101.9 in New York, FM News 101.1 in Chicago, WNEW in Washington, News 92 in Houston, and All News 106.7 in Atlanta.

 

[gimmethemoldies]

It's too bad News 92 failed. Of the various all-news launches from that era (there were five in total), I thought that one and All News 106.7 in Atlanta sounded the best.

None of the all-news newbies survived. FM News 101.9 in New York, FM News 101.1 in Chicago, WNEW in Washington, News 92 in Houston, and All News 106.7 in Atlanta.

I loved News 92. I wish someone would do an all-news format here.

 

[jt99]

If Cumulus were to acquire KTHT through a swap, I could see them retaining the Classic Country format.

 

[TheBigA]

If Cumulus were to acquire KTHT through a swap, I could see them retaining the Classic Country format.

That's what I was thinking. Cumulus has had a lot of success with a 90's based classic country format in several markets including Nashville.

 

[Deleted member 108832]

97.1 has more than 2.7 million people in the 60 dBu. Even at just $2 per pop that is $5.4 million. That's going to be a pretty big swing for anyone who isn't already a major market owner.

To be sure, 92.1 is the better of the two signals, but 97.1 isn't terrible and in my experience is a much better market-wide rimshot than the Liberty County ones such as 93.3, 97.5 (the worst one), 98.5, 100.7, 103.7, and 107.9. The last two of those rimshots that changed hands both went for more than 5 million.

I agree on your assessment of 97.1, but given the recent "upgrade" of 92 1, I believe that it will sell for more than what is ultimately paid for 97.1. I'm not sure who it was with the value under $5 million, but I concur with you that that's an awfully low appraisal for the facility.