Renda has sold KMGL, KOMA-FM, KOKC and KRXO to Tyler Broadcasting. More details to come.
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Renda's getting out of OKC
- Thread starter TexasTuner
- Start date
TexasTuner said:Renda has sold KMGL, KOMA-FM, KOKC and KRXO to Tyler Broadcasting. More details to come.
Already being discussed under the topic "Just heard".
So I see..earlier this morning, there was no mention I could see, that's why I started the thread. Onward!
Texas Tuner (former KOMA employee)
Texas Tuner (former KOMA employee)
MEMO TO TONY: DON'T LET THE DOOR HIT 'YA ON THE WAY OUT.
;D
;D
(Numbers are published or estimates based on good guessing)
3M = aquired KMGL many years ago (estimated)
53.5M= acquired KOMA A/F and KRXO in 1997
1M= new studio equipment at 400 E Britton (estimated)
1M= digging a hole in front of KFOR (the aborted new studio project)
2M= purchase of the 400 E. Britton. studios from his competitor (estimate)
1/2M= new FM tower project (estimate)
Total spent= 61M (estimate)
Knowing that Tony sold OKC for only 40M to some local guys = PRICELESS.
3M = aquired KMGL many years ago (estimated)
53.5M= acquired KOMA A/F and KRXO in 1997
1M= new studio equipment at 400 E Britton (estimated)
1M= digging a hole in front of KFOR (the aborted new studio project)
2M= purchase of the 400 E. Britton. studios from his competitor (estimate)
1/2M= new FM tower project (estimate)
Total spent= 61M (estimate)
Knowing that Tony sold OKC for only 40M to some local guys = PRICELESS.
So now the question is, where did Tyler go to get the funds to do this deal? What (or which) devil did he have to find to make this deal happen? Lots of $$$$ involved here! Don't get me wrong-I'm happy to see this happen. I hope for Ty's sake everything works out and he can make the note payments.
I hope they didn't over-extend too much. I sure don't wish a repeat of history on them.
OKCRadioGuy said:(Numbers are published or estimates based on good guessing)
3M = aquired KMGL many years ago (estimated)
53.5M= acquired KOMA A/F and KRXO in 1997
1M= new studio equipment at 400 E Britton (estimated)
1M= digging a hole in front of KFOR (the aborted new studio project)
2M= purchase of the 400 E. Britton. studios from his competitor (estimate)
1/2M= new FM tower project (estimate)
Total spent= 61M (estimate)
Knowing that Tony sold OKC for only 40M to some local guys = PRICELESS.
Actually, the monetary loss is much greater than you may think when you consider that you have to move money to the same point in time to get a completely accurate picture of how much it's worth. Remember, a dollar today will be worth about 97 cents at this time next year. So, that $40 million Tony's getting now was only worth about $23 million in '98 when adjusted for inflation!
While I'm sure it's not exactly what he had in mind when he bought out Diamond not quite 15 years ago, he probably still makes out okay on this deal. Those stations billed quite well under his watch, and that should more than cancel what he's losing on the KOMA/KRXO deal. Also, he gets a nice capital loss for his balance sheet that will cancel out the capital gain he got from selling his Tulsa stations to Journal (for almost 3 times what he paid for them) and still leave him with a loss he can carry forward for a few years. He can save himself roughly $1 million in capital gains taxes this year alone!
This deal in particular, however, has led some to speculate that Tony's planning on exiting the business altogether in the next few years. Whatever happens, it'll be interesting to watch!
I sure will. That's certainly some additional things to consider for sure. Inflation and other factors sure kick in here. Regardless, the guy probably has a lot less sleepless nights. My guess is he cancelled either most or all of his debt, so he doesn't have to worry as much about things now. When he hands this to his kids he will be doing the favor of giving something that's not as *ucked up. They could just work to maintain....
Let's not kid ourselves. Renda made a lot of money from these properties while he has owned them. What he paid initially and his sell-off margin is important, but not as much as the cash he raked in over the years. He's lived in luxury while his jocks were paid poorly (most of them).
I'd like to think that, but when you're talking about a long-term loan that I'm pretty certain he had to take out on 53 million, he probably was mainly making interest payments. Most of his profit probably was eaten by the the note.
Even if he took out a loan with interest, he probably still did okay. He should be able to pay the rest of this deal off at once, which gets him out of additional interest. Granted, interest loans are heavily front-loaded with the first few years being just interest and minimal principle, but he wouldn't have done this deal if he couldn't come out okay on it.
He probably got out sort of with his shirt on, but I'm pretty sure the goal was to get out of the dog house, so to speak.
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