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TV stations for sale -- in Dallas and Houston

TexasTom

TexasTom

Some fairly new listings on the Hadden & Associates website http://www.haddenonline.com/

First listing:

Dallas, TX/ Ft. Worth - Houston, TX UHF Fullpower TV station, Indy $75.0M
Click to expand...

Okay, it's pretty easy to guess that these two stations are KLDT in Dallas/Fort Worth and KNWS in Houston, both owned by Johnson Broadcasting, Debtor-in-possession. I think that they're insane if they think that they're going to get these sort of prices for a bankrupt station group in today's market, but it's interesting to see the listing.

And here's the other one of interest:

Houston & San Francisco UHF TV Fullpower stations Houston - $22.0M San Fran - $22.0M
Click to expand...

Could these be the former Pappas stations: KAZH in Houston and KTNC in SF? In any event, the prices seem a bit more in line with the current market...
 
I saw these two listings on HaddenOnline as well and came to the same conclusion you did.

For the Dallas/Ft. Worth and Houston combo at $75 million for 4.6 million household this places a value of around $16 a household.

While for San Francisco, assuming its KTNC and ignoring the fact it also get many households in the Sacramento market, 22 million asking and 2.4 million households leads to around $9 a household.

And finally for Houston, 22 million asking, 2.1 million households equals nearly $10.50 a household.

It's worth noting that there was a report a few years ago during the peak pricing for full-power television stations that said "stick value" alone is $19 a household.
 
stationi said:
It's worth noting that there was a report a few years ago during the peak pricing for full-power television stations that said "stick value" alone is $19 a household.
Click to expand...

I can believe that would have been the case at the peak -- and would have been reasonably consistent with the prices on unconsummated sales for both KLDT and KTAQ in the Dallas/Fort Worth area in 2000, when taking into account the limited signals of both stations at the time. The price tag nine years ago on KLDT was $35 million, and for KTAQ was $25 million. That would work out to around $16/household for KLDT at the time...

Needless to say, anything close to $19 a household for stick value today is a fantasy -- and some recent sales (albeit in much smaller markets) suggests that even half that amount is excessive. KLDT today has a better signal than it did ten years ago -- an underpowered signal from Cedar Hill is still an improvement over their old analog tower site in Lewisville -- but I'd be surprised to see it go for more than $20 million, which would be more like $9/household.

In any event, it will be interesting to see what these stations ultimately sell for.
 
Saying that KNWS is "full power" is stretching it; I have yet to get a digital signal for it.
 
TexasTom said:
stationi said:
It's worth noting that there was a report a few years ago during the peak pricing for full-power television stations that said "stick value" alone is $19 a household.
Click to expand...

I can believe that would have been the case at the peak -- and would have been reasonably consistent with the prices on unconsummated sales for both KLDT and KTAQ in the Dallas/Fort Worth area in 2000, when taking into account the limited signals of both stations at the time. The price tag nine years ago on KLDT was $35 million, and for KTAQ was $25 million. That would work out to around $16/household for KLDT at the time...

Needless to say, anything close to $19 a household for stick value today is a fantasy -- and some recent sales (albeit in much smaller markets) suggests that even half that amount is excessive. KLDT today has a better signal than it did ten years ago -- an underpowered signal from Cedar Hill is still an improvement over their old analog tower site in Lewisville -- but I'd be surprised to see it go for more than $20 million, which would be more like $9/household.

In any event, it will be interesting to see what these stations ultimately sell for.
Click to expand...

Hasn't KLDT & KNWS been up for sale for quite a few years now? If so then this is really nothing new. The question is who buy the stations. KLDT's signal has improved a little bit than when it was an analog station but the signal cuts out a little bit from where I'm at. But KFWD-52's signal is not the best since they moved over to Ch. 9. Is anyone else having trouble receiving KFWD?
 
We can rule out major players like Fox, CBS and NBC for these stations. Belo probably can't buy them either. ABC could, but isn't big on duopolies.
 
A wise man once told me every station is for sale everyday. It's just a matter of the right buyer walking through the door.
 
The problem for them right now is that there don't seem to be a lot of buyers looking for turnaround opportunities right now. Daystar ended up picking up a bunch of the Equity stations for cheap earlier this year -- but they're already in Dallas and Houston and are obviously not a buyer for KLDT and KNWS.

As for duopoly opportunities -- in Dallas, the only significant stations that aren't part of a duopoly or joint operating agreement is Tribune's KDAF and Liberman's KMPX. I wouldn't expect that either is likely to be a buyer for a second station in DFW.
 
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