The Latest Rumor Is...

[DXDXDX]

Salem sold its stations in Los Angeles. They are about to sell the Orlando properties. Anybody confirm this?

 

[davideduardo]

Salem sold its stations in Los Angeles. They are about to sell the Orlando properties. Anybody confirm this?

I can't imagine what the LA stations are worth.

The FM, although it has a somewhat annoying directional pattern, is a Mt Wilson signal, worth upwards of $120 million alone. The rest of the collection is likely worth over $50 million. Such a deal would be very significant.

 

[ThatGuyOnTheRadio]

Don't imagine Orlando properties are worth much. They're all AM's, one of which is a 5KW graveyard at 1520.

 

[jmtillery]

Salem paid approximately $10 million to acquire WTLN-AM 950 and WHIM-AM 1520 from TM2, Inc. and Alton Rainbow Corporation respectively (Thomas H. Moffit, Jr., Principle of both corporations) a little over 5-years ago.

 

[ok walters]

Wow - $10 million for those 2 AM stations sounds pretty crazy, even for five years ago. They will take a bath if they sell it now.

 

[ThatGuyOnTheRadio]

Salem paid approximately $10 million to acquire WTLN-AM 950 and WHIM-AM 1520 from TM2, Inc. and Alton Rainbow Corporation respectively (Thomas H. Moffit, Jr., Principle of both corporations) a little over 5-years ago.

What did they pay for the 3rd AM WORL?

 

[Jeff2]

Salem paid approximately $10 million to acquire WTLN-AM 950 and WHIM-AM 1520 from TM2, Inc. and Alton Rainbow Corporation respectively (Thomas H. Moffit, Jr., Principle of both corporations) a little over 5-years ago.

What did they pay for the 3rd AM WORL?

I don't know if any money changed hands. There was a swap for a station somewhere in Texas (Dallas?).

 

[Parttimer]

More than one owner wants out of the Orlando market.

 

[ThatGuyOnTheRadio]

More than one owner wants out of the Orlando market.

Who else? CBS?

 

[cflradio]

We reported this back on 2-6-06. "Salem Communications has closed an even swap of Religious KNIT-AM 1480, Dallas for News/Talk WORL-AM 660 with Jim Hilliard’s James Crystal Radio. The value placed on the deal was $6 million."

Bob
www.cflradio.net

 

[jmtillery]

More than one owner wants out of the Orlando market.

Who else? CBS?

It has been long rumored that CBS Radio has been passively seeking a suitor for its three Orlando and five West Palm Beach radio properties in addition to stations in other CBS markets that fall outside the Top 25.

 

[Parttimer]

More than one owner wants out of the Orlando market.

Who else? CBS?

Yes... they have wanted out for a couple of years now, but capital is so tight no one can come up with financing to buy the cluster.....

 

[Ai4i]

The FM...is...worth upwards of $120 million alone.

Today, after a full power FM on the Empire State Bldg sold for just $45 mil?

 

[jmtillery]

The FM...is...worth upwards of $120 million alone.

Today, after a full power FM on the Empire State Bldg sold for just $45 mil?

Fair Market Value (FMV) is determined by one of two main methods. The first is "stick" value which is based on the population count within the station's 54dBu service contour when there is little or no positive cash flow. Pop count multiples are normally based on a $4.00 per person pop count multiple. This was the case with WQXR New York when it was sold last year for $45 million since WQXR was not cash flowing any meaningful ad revenue figures.

In the case of the Los Angeles station, the FMV is based on positive cash flow since the station actually has one. The cash flow multiple, in this case, is greater than what the FMV would be using the pop count method. Since a buyer buying the Los Angeles station is buying more than a stick, namely accounts receivable or positive cash flow, the cash flow multiple was used to determine the FMV.

Simply put, this is why there is a vast difference in the FMV between the Los Angeles and New York City stations in question.