> I have a question...I read (I think) on Boston.com WCRB
> could sell for approx. 90 million dollars, and estimates it
> bills 8.4 million a year. Can anyone explain to me how
> anyone can make money buying something for the rough
> equivalent to 11 years of sales? Doesn't sound like a good
> investment to me.
Revenue wise, the station would not be worth $90 million (others estimated up to $100 million) were WCRB to retain the classical format. Although most radio stations normally sell for 7-8 years worth of annual revenues, the WCRB case was different as WCRB was seen as the last big station not owned by a broadcast giant like Clear Clannel.
Additionally, the billing for WCRB was $8.4 million, but no one who was bidding on the station was expected to keep the format. This is because, as you said, it would be impossible to make up such a large investment in a short period of time.
> Also on that subject, if 99.5 is sold, any ideas on what it
> could fetch? If CRB can get 90, KLB seems good for 110+.
> Any explanations would be most welcomed, and thank you.
I'd highly doubt it. First off, WCRB has a very powerful signal, centrally located and covering all of the Boston area. 99.5 also has a powerful signal, but the transmitter is forced to be located about 40 miles north of Boston. Additionally, because 99.5 is one of Greater Media's most successful stations, they will most likely be retaining the "intellectual property" of the frequency, which refers to any station trademarks, the airstaff, the music library, the webpage, etc.
What would seem most likely at the moment would be a flop between 99.5 and 102.5, with the less-successful classical format moving to 99.5, with the successful country format moving to 102.5. In this scenario, Greater Media could then sell 99.5 with a format, although it would almost certainly be changed after a sale.
Otherwise, 99.5 could be turned into a direct simulcast of 102.5 once a switch takes place (which is not confirmed, just some very likely speculation), and 99.5 could be sold with no intellectual property.
