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What's Next for KTRB?

FM stations with positive cash flow selling for 4 million or less. In the Bay Area? I don't know what it was cash flowing lately, but the Fox (KUFX) just sold in January for 9 million. I don't think Entercom is inclined to overpay by double what a station is worth.
 
SFStatic said:
FM stations with positive cash flow selling for 4 million or less. In the Bay Area? I don't know what it was cash flowing lately, but the Fox (KUFX) just sold in January for 9 million. I don't think Entercom is inclined to overpay by double what a station is worth.
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KNGY 92.7 sold for $3.8 mill as I recall. And what did 104.9 go for recently? I seem to remember it was around the $4 mill mark.
 
KNGY never could have had a positive cash flow. At a sales price of 33 million, they never could have come close to that, which is why it sold for such a small amount. They just had to dump it for what they could to get out from under it. It might be worth pointing out that neither station had much coverage...particularly KNGY. It's not far from 92.1 in Walnut Creek in that department...which sold for about the same several years ago. KKDV doesn't even cover all of Contra Costa County, but when combo sold with KKIQ and KUIC, it makes some sense to suburban advertisers. KNGY really didn't have that going for it as a free standing low power station in SF. The same could be said for the signal-challanged former Channel 104.9.
 
SFStatic said:
KNGY never could have had a positive cash flow. At a sales price of 33 million, they never could have come close to that, which is why it sold for such a small amount.
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I was told by someone who was there that they were getting positive cash flow, which I assumed to mean that excluding the debt the flow was positive. Including the debt it was obviously worth only $3.8 not $33 million, which was clearly a ridiculous price for a hemmed-in Class A station.
 
@David- I would agree that without that mountain of debt service, the station should be able to cash flow a nice little chunk of billing. Before it sold, the CEO told me "I think I bought a job for life." It must have been crushing having all that debt hanging over you day after day. Even a million is a load for a small business, unless you've got great cash flow to cover your overhead. Been there, done that.
 
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