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What's up at KMCQ
- Thread starter GS
- Start date
...especially with the kids showing them how to download all the music for free!
How much does an ipod cost?
How about the local staffing rule? Is there a studio with management that you can visit during business hours? It would be kinda spendy if they never sell a spot.
LITTLEBOYBLUE said:
Regardless of the source of said music if you broadcast it you still have to pay the piper at the end of the day those royalties so I would think at some point something would have to give.
Could they simply be funding it enough to keep the signal going while they try and sell?
TheX-KXRX said:
DING-DING-DING-DING (canned applause) WINNER!
Are you new to this discussion? No, I guess you are not..
K
KentMcN
Guest
Is there anybody's guess who will buy it or even wants to buy it?
I am assuming the asking price is the main issue. W/O disclosing their EXACT asking price I do know it has a "18" in the beginning. Guy
THANK YOU Boss Bill!
Guy Betten said:
$18.74 seems like a pretty fair bargain.
Someone should jump on that.
Bill Wolfenbarger said:
Reminds me of the Seinfeld episode that was just on tonight.
Jerry: So, we're going to make the post office pay for my new stereo, now?
Kramer: It's a write-off for them.
Jerry: How is it a write-off?
Kramer: They just write it off.
Jerry: Write it off what?
Kramer: Jerry all these big companies they write off everything.
Jerry: You don't even know what a write-off is.
Kramer: Do you?
Jerry: No, I don't.
Kramer: But they do - and they are the ones writing it off.
KentMcN said:
It seems to me that this PE group has painted itself into a corner with this particular station. Unless they are willing to take a serious stick-value haircut on the anticipated sale price, their options are:
1. Sell to an existing group in the market. To the best of my knowledge, few if any are in the liquidity nor lending position to pay several mil for a partial market signal in a troubled economy. Most are just dug in trying to avoid further economic flack.
2. Sell to someone who wants into the market. I've spoken with group owners outside the market who have sniffed this property but are concerned about the valuation with a partial market signal in a station and format saturated market.
3. LMA to an inside market group. An LMA would bring in some revenue over time, but would probably decrease the value, depending on the success or failure of a format. The real risk is when the LMA ended, the PE group could be stuck with an albatross.
4. Operate the station. A PE group is not an operator and as in example 3, a misstep in selecting a format or management team could severely devalue the property. Depending on the organization of the PE corporate entity and the lenders-investors involved, there may be covenants preventing them from becoming an operator (which would be smart).
KentMcN said:
If the price goes low enough, they'd have plenty of buyers. Problem is that First Broadcasting is unwilling or unable to sell the station at a low enough price to attract buyers in the current market.
TVradioguru said:
Really, what would First Broadcasting have to lose in this scenario? It looks to me like KMCQ is already a big time albatross for them; could an LMA really make that any worse?
Three years ago, I had a conversation with someone at First Broadcasting who admitted that KMCQ has been a loser for them -- and that was just because the move-in took much longer than anticipated, and was thus also far costlier than they had planned for. Unfortunately for them, they finally got the move-in finalized around the time that the collapsing economy essentially wiped out the market in station trades.
Bill Wolfenbarger said:
C'mon Bill. KMCQ isn't even in actual BUSINESS. And maybe that's why no one is buying. It should have SOMETHING that demonstrates this 7,000 watt stick has ANY potential. People these days just aren't going to throw $18 million (or whatever) on something based on future speculation anymore. Too many people have learned that lesson the hard way.
Unless you're First Broadcasting. And even I have my doubts there. You see, a 7,000 watt power bill 24/7 is a LOT to pay each month. I just can't see anyone paying that (with no income whatsoever coming in from KMCQ itself) when it's much simpler (and cheaper) to just run the station for a few hours once every year just to keep the license valid.
Regardless, SOMEONE is paying for it. And it's been almost 2 years now. Which means someone either wants one HELL of a return on this (which they know at this rate they may never get) on this OR.....
That's right, TAX WRITE OFF (and that DOES happen.) You'd be surprised at the benefits a corporation gets from the government.
Look into it. KMCQ definitely falls into the criteria needed. There's loopholes GALORE in any incorporation....
To simply assume that somehow a Private Equity firm or any business writes off the expense of operating a business and that it somehow benefits them, is a completely wrong assumption. As with your personal texes, tax deductions or write-downs, are available only as a limited basis and as a relatively small percentage of the investment. One can typically amortize a percentage of the equipment value over several years, but that's about it. Any deductions are an infinitesimal amount, compared with the total expenses to buy, move and construct a radio station.
Bill is a business owner and unlike you, operating stations. Rather than argue with him, maybe learn something for once?
Bill is a business owner and unlike you, operating stations. Rather than argue with him, maybe learn something for once?
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