U
Unregistered
Guest
Ive heard Jerry Lee has put WBEB up for sale. Who willl buy it ? AC music likely willl remain on 101.1.
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Probably Cumulus.
U
Unregistered
Guest
You mean Cumulus would want to buy its first station in Phillly ?
U
Unregistered
Guest
what company could buy WBEB & take on debt ? CBS, I--Heart, Greater Media, Beasley, Radio One, etc ?
atthestars
Star Participant
Any proof to this claim? I know Jerry is getting older, but I'd like to see this proven somewhere before speculating.
Either way, whoever buys would be a fool to tinker too much with it.
The question is who owns the debt? I'd think they'd be involved in determining the next owner.
It goes back to what I said in post #4. When Jerry's partner died 10 years ago, he bought out the estate for about $85 million, based on station values at that time. That amount was financed. So I don't know how much has been paid back, but there is some debt from that transaction, and according to Tom Taylor, the interest rate is over 10%.
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J
Jul
Guest
I think that CBS should buy this station and sell 1210 WPHT to someone else. It would be a smart move for CBS to make, if they want 101.1 FM
U
Unregistered
Guest
The market value for the station - for any station - is considerably less than it was 10 years ago. The market for radio properties has seriously declined.
The cost to any buyer would be the selling price for the license and any included station assets. Plus, assuming the purchase includes the station's outstanding debt, the cost of the station includes all the remaining principle and interest. Given that the big owners already mentioned incurred big debt when they went on their buying binges a decade or more ago, they may not be so eager this time to swallow a station unable to pay off what it owes.
I also wouldn't assume anything lasts forever - including AC. Potential buyers are going to have to factor in how long this station is likely to continue to pay.
If the figures mentioned here are accurate, Jerry Lee may have trouble finding anyone willing to assume his debt and the market value of the station may not be enough to retire the debt. Of course, this is what bankruptcy lawyers are for.
Add to all this, if and when he does sell, the government comes after him for capital gains.
I say: Declare bankruptcy to get out of debt. Give the station to WHYY for a tax write-off. (Please not how many major market public broadcasters operate multiple stations in their respective markets.)
The cost to any buyer would be the selling price for the license and any included station assets. Plus, assuming the purchase includes the station's outstanding debt, the cost of the station includes all the remaining principle and interest. Given that the big owners already mentioned incurred big debt when they went on their buying binges a decade or more ago, they may not be so eager this time to swallow a station unable to pay off what it owes.
I also wouldn't assume anything lasts forever - including AC. Potential buyers are going to have to factor in how long this station is likely to continue to pay.
If the figures mentioned here are accurate, Jerry Lee may have trouble finding anyone willing to assume his debt and the market value of the station may not be enough to retire the debt. Of course, this is what bankruptcy lawyers are for.
Add to all this, if and when he does sell, the government comes after him for capital gains.
I say: Declare bankruptcy to get out of debt. Give the station to WHYY for a tax write-off. (Please not how many major market public broadcasters operate multiple stations in their respective markets.)
chrocket87
Star Participant
Are you suggesting CBS should flip WBEB to WPHT-FM, skipping the simulcast phase, because that would be a GREAT idea if they did that!
On a serious note, has a station ever just skipped the AM/FM simulcast period and instantly created a new format for the AM when the AM moved?
On a serious note, has a station ever just skipped the AM/FM simulcast period and instantly created a new format for the AM when the AM moved?
Jul,
Of your absurd ideas, this one is a whopper.
WBEB is the second highers billing station in Philadelphia, and has to be by far the most profitable.
WBEB bills over four (4) times as much money as WPHT.
Profitable stations are sold for a multiple of their cash flow. Why would CBS buy what would no doubt be the most expensive station in town and then put a format that is on life support nearly everywhere on it, blowing off the billings and the profit?
U
Unregistered
Guest
cbs might sell WPHT. And buy WBEB & keep AC on it.
Would the fcc approve that ?
Would the fcc approve that ?
J
Jul
Guest
NO. I'm suggesting that CBS keeps the format at 101.1 FM and sells 1210 WPHT to someone else. CBS would have to sell a station, since they will be at the limit.
J
Jul
Guest
I'm suggesting that CBS keeps the current format at 101.1 FM and sells 1210 WPHT to someone else. CBS would have to sell a station, since they will be at the limit.
Yes that's what I was thinking. They don't own one here.
Not sure that it would be worth the money just to put a notch in a belt.
Their CEO just did a conference call yesterday with investors. I don't recall him talking about acquisitions at all. The main subject was making the current stations cost effective. WBEB operates very differently from Cumulus. I'd say that's an understatement.
You mean that WBEB is magnificently well run?
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