Seattle's Fisher Communications Sells Small-Market Radio Stations

[Tig1150]

Fisher Communications Sells Small-Market Radio Stations SEATTLE--(BUSINESS WIRE)--May 31, 2006--Fisher Communications, Inc. (NASDAQ:FSCI) announced today that it has signed a definitive agreement to sell its twenty-four small-market radio stations located in Montana and eastern Washington to Cherry Creek Radio LLC for $33.3 million. This sale, which is subject to FCC approval and certain other conditions, is expected to close by the end of third quarter 2006. Fisher will continue to own three radio stations in Seattle, as well as television stations in Washington, Oregon, and Idaho. In 2005, Fisher's small-market radio stations generated revenue of $12.2 million.Commenting on the transaction, Fisher Communications' President and CEO, Colleen B. Brown, said, "By selling our small-market radio stations we are able to focus on increasing the synergies and operating performance of our remaining cluster of Northwest stations. We are pursuing new opportunities, such as our entrance into Spanish-language television announced in late 2005." The Company expects to use a portion of the net proceeds to pay for the purchase of a television station in the Portland, Oregon DMA announced in December 2005, which is also expected to close by September 30, 2006. The Company intends to use any remaining net proceeds from the sale to invest further in its business operations. Kalil & Co., Inc. acted as the exclusive broker for this transaction.Fisher Communications, Inc. is a Seattle-based integrated media company. The Company's nine network-affiliated television stations, and a tenth station 50% owned by Fisher Communications, are located in Washington, Oregon, and Idaho, and its 27 radio stations broadcast in Washington and Montana. The Company also owns and operates Fisher Plaza, a facility located near downtown Seattle. This press release includes forward-looking statements. In particular, statements about expected closing dates, obtaining necessary approvals and otherwise satisfying closing conditions for the sale transaction, and expectations with regard to use of net proceeds from the sale, are forward-looking statements. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. We do not undertake any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments. CONTACT: Fisher Communications, Inc.

 

[billybee]

And these are the same stations they bought from Larry Roberts a few years ago... where's Larry in all this ?

 

[OttoM]

And these are the same stations they bought from Larry Roberts a few years ago... where's Larry in all this ?

VP/GM of KOMO, KVI and KPLZ as of March '06.

 

[maybescrewed]

They've done this a few times in recent years.Divested themselves of some TV stations back East...(Gorgia I think) and a few small market stations closer to home.If the tech bubble hadn't burst in 99-2000, they'd have been raking money in hand over fist by 2002.That was the original intent in building the technology palace to begin with.There are racks and racks upon racks, containing terabytes upon terabytes of unused bandwidth capability in the 3rd floor engineering space (well, at least as of April 2005 there were).Ostensibly, the vision for the $190 Million plus building was to be the hub of Seattle's .com boom.It was interesting and it was fun...but.....I sho doesn't miss it any.Certainly don't miss the 125 mile daily commute. Especially at Today's gas prices.Gas, Maintenance, and parking cost $5,000 over the last year I was there... I shudder to think what that would be now.There's something to be said for everything you do, every mile you drive, the clothes you buy, all being a tax deduction now !!!! lol

 

[jdweaver]

Good price - but not outstanding for Fisher IMHO . Word is that the price represents about a 10 times cash flow multiple. Should that be true - the industry multiples continue to decline (were up to 15 just a few years ago) and Cherry got a decent deal. Small markets are very tough - and Larry Roberts seemed to have a good handle on running them. Good luck to the boys at Cherry - lots of work ahead to service that debt!