yard sale

[1976]

A friend down in Dothan mentioned DJR is available for the low low price of 7 mil. Anyone have any more info?
As bad as the CR and the Classic Country numbers are, that seems inflated in todays market.

Could someone's non compete be up soon..and have access to lots of cash..like a bank?

 

[Preem Palvor]

A friend down in Dothan mentioned DJR is available for the low low price of 7 mil. Anyone have any more info?
As bad as the CR and the Classic Country numbers are, that seems inflated in todays market.

Could someone's non compete be up soon..and have access to lots of cash..like a bank?

7m actually seems on the low side to me.

It would be a nice cluster for "TD" to jump back into the market with.
I think his nc ends in September and I'm betting he is itchin' to do radio again.

 

[radioresearcher]

A friend down in Dothan mentioned DJR is available for the low low price of 7 mil. Anyone have any more info?
As bad as the CR and the Classic Country numbers are, that seems inflated in todays market.

Could someone's non compete be up soon..and have access to lots of cash..like a bank?

7m actually seems on the low side to me.

It would be a nice cluster for "TD" to jump back into the market with.
I think his nc ends in September and I'm betting he is itchin' to do radio again.

Why would anyone who has owned in this market ever want to come back in after being lucky enough to get out?

The market doesn't appear to have much upside. Isn't the revenue flat or down.

Also, 7M seems low. Probably more like 10M or 11M for those three.

 

[Stewy]

Researcher,

If the revenue is down in the market as you say then how can you turn around in the same post and say 7M is too low should be 10M or 11M? 10 or 11 might have been the achievable price once upon a time before a cluster not from MS started the market revenue in a southerly direction.

Here's my guess...someone in Dothan is VERY worried that 1976's post is correct. Anyone remember The Verve's song "Bitter Sweet Symphony"?

Or, while in the area of speculation, what if the rumor '76 heard was started by the Magical Mystery Tour to get a false price established so they might be able to dump their group for more than what it'll bring in todays market?

Fun questions. Is the light in the kitchen beginning to burn brighter so the roaches are looking for cover?

Thanks '76, the possible ramifications of what you heard are most entertaining! Keep sharing!

 

[radioresearcher]

Researcher,

If the revenue is down in the market as you say then how can you turn around in the same post and say 7M is too low should be 10M or 11M? 10 or 11 might have been the achievable price once upon a time before a cluster not from MS started the market revenue in a southerly direction.

Here's my guess...someone in Dothan is VERY worried that 1976's post is correct. Anyone remember The Verve's song "Bitter Sweet Symphony"?

Or, while in the area of speculation, what if the rumor '76 heard was started by the Magical Mystery Tour to get a false price established so they might be able to dump their group for more than what it'll bring in todays market?

Fun questions. Is the light in the kitchen beginning to burn brighter so the roaches are looking for cover?

Thanks '76, the possible ramifications of what you heard are most entertaining! Keep sharing!

One would think WDJR is cash flowing in excess of $600,000/year. At 10x cash flow, that makes it worth $6 million alone.

$7 M just seemed a little low to me for all three - but you could be right.

But in a declining market, maybe TRP want to get out while they can. Who would blame them?

Plus, WDJR is back at No. 1 - might as well be like Seinfeld and go out on top.

 

[Garlic Bread]

Here's my guess...someone in Dothan is VERY worried that 1976's post is correct. Anyone remember The Verve's song "Bitter Sweet Symphony"?

Or, while in the area of speculation, what if the rumor '76 heard was started by the Magical Mystery Tour to get a false price established so they might be able to dump their group for more than what it'll bring in todays market?

if you take a look at 76's previous 4 posts, he defends Magic or knows inside on the Magic Family....My guess is that he/she is an old guard KMXer....who would possible be friends with "TD" or who would possibly try to give the false price established.

 

[morecowbell]

On first look 7m does seem low. Then again, 7m + assumption of all debt might get close.

Remember the RP have posted some HIGH CapEx in the last few years.
What with a new 1000 foot tower & transmitting facility, a couple of new transmitters, revamped studios, and new & probably more expensive talent & consultants for the "Big Dog". Maybe a couple of mil debt right there.

And with market revenue down, I know of two stations in the market that are enjoying record revenue, so the Big Dog with its new found surge in the ratings should be able to get their revenue back up.

Taking all this into consideration, I agree with Researcher & Preem. 7m is too low. 10m + debt seems about right.

 

[pnut rox]

Lets assume that so far everything is true..

1) IF the RP wants to sell it's Dothan cluster $7 mil I would assume would be about right...1-100.000 watt station, 1-15,000 watt, and 1-10,000 watt (there or about) Only 1 of the 3 stations makes an impact in the market revenue wise or ratings wise.

2) This market has plenty of potential for a revenue upswing. Its just a matter of doing good radio. But to demand decent prices you have to have a decent product, something this market is missing and has been missing for a few years. It seems that the rate cards lost all "style" and are "magically" dropping.

3) If "TD" does want back into the game of radio, it is probably because he has the passion, the desire, the gumption to do good radio. When "TD" left the radio game, it lost one its finest players! So if "TD" steps up to the plate...Let the games begin...

But you know what happens when you assume...you make an A$$ out of "u" and "me"

 

[radio_gurl1129]

I don't care who buys what, but the current market in Dothan stinks. From everything to the processing, to the promotion, to the song selection. Dothan radio needs some sort of help from someone. 1st step = get rid of Pollard.

 

[whistler]

I don't care who buys what, but the current market in Dothan stinks. From everything to the processing, to the promotion, to the song selection. Dothan radio needs some sort of help from someone. 1st step = get rid of Pollard.

I don't know if you noticed or not, she has brought in more money and fresh ideas for "magic" than any of their other stations could hope for. She should consider being a buyer!!! Why do you think "TD" valued her SO much???

 

[dothanmonitor]

None of the big boys want stations or clusters in Dothan. Maybe some smaller outfits.

7 million is a joke though. $1.3 to $1.8 mil in yearly revenue. Relatively updated studios, new tower etc. I think $15 mil might be a starting point for negotiation for the cluster.

 

[Stewy]

I would agree with you if this were 2002 or 3 but haven't the multiples gone down to the 3 to 5 range in markets this size? What if holiday doesn't want to sell the tower but he probably does since he built it so short. Looks like a little brother standing there next to the Ch4 monster. Wouldn't the FAA have approved one just as tall for TRP? With what he put into the group he'll make a chunk even if it sells for 5M. He might start at 15M but I don't know of anyone that'll bite that big right now. Hey what about you Monitor?? 15M, lets see, that's a monthly payment of 150K? I just don't see the numbers working at 15M, if you pay 5M then you're payment and operating will fit within the estimated revenue (excluding tower rental income), 3or 4M is more comfortable but I don't think they'll sell for that. What about it Monitor, I'm at 5 and you're at 15, lets say that whoever is the closest if a sale occurs in '07 buys the other lunch in Dothan?

 

[panhandler]

I would agree with you if this were 2002 or 3 but haven't the multiples gone down to the 3 to 5 range in markets this size? What if holiday doesn't want to sell the tower but he probably does since he built it so short. Looks like a little brother standing there next to the Ch4 monster. Wouldn't the FAA have approved one just as tall for TRP? With what he put into the group he'll make a chunk even if it sells for 5M. He might start at 15M but I don't know of anyone that'll bite that big right now. Hey what about you Monitor?? 15M, lets see, that's a monthly payment of 150K? I just don't see the numbers working at 15M, if you pay 5M then you're payment and operating will fit within the estimated revenue (excluding tower rental income), 3or 4M is more comfortable but I don't think they'll sell for that. What about it Monitor, I'm at 5 and you're at 15, lets say that whoever is the closest if a sale occurs in '07 buys the other lunch in Dothan?

It's eight to ten times right now - cash flow - not revenue. Let's use both numbers as an example - and assume (which is dangerous) that they are putting 50 cents to the bottom line.

At $1.3 million, there would be cash flow of $650,000. At 8 times, we're looking at $5.2 million. Say they're doing $1.8 million - and cash flowing $900,000 - it's likely worth $7.2-$9 million.