...vary a lot due to intangibles like perceived reputation, but $20M for those three stations seems like a premium.
KXXT is a 15KW transmitter with pretty good coverage across southern Arizona (see coverage map, serving the 15th largest radio market in the US.
Recent sale prices for comparison were hard to come by, but I finally tracked down a Web site for a station broker (Dave Garland) which listed some recent prices.
$20/3 = a little under $7M for KXXT (I'm being conservative to just divide the price by 3, since the third station in the deal sounds much smaller, and the second station is also in the Phonex market [and geez, talk about media concentration!]). For comparison, few AMs get over a $million, and those are in bigger markets. KYOK in Houston sold recently at $6M, while stations in markets a little smaller than Phoenix (e.g. North Texas) came in for $1.8M or so.
I used to work in broacasting, and I can tell you that it's a grubby little business. Everybody thinks it's full of glamor and money, but the reality is radio stations outside really major markets are so poor they don't have a pot to piss in, and sale prices reflect that (the usual multiple is 6-8 times earnings).
I still say that there's some truth in the allegation that the CBN paid a premium (some might say ridiculous) price to shut down a liberal voice. It could've bought 3 radio stations with equivalent coverage for a whole lot less money.
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The whole thread (38 posts)
- A bit pissed today
- Pissed as in "avin' a few pints o' tha bitters down a' tha local", pissed? (n/t)
- For God's sake, don't anyone tell him about Air America and New York. (n/t)
- Sounds like a great way to make money
- Awwwwww. The commie libs sold out to the rich Christians...
- Heh, heh.
- Is that last part a threat?
- The threat right now is rhetorical
- Typical: "competition" = "crushed by money"
- Then again, I could be wrong about nobody going "Billy Jack."
- Don't let it get you down