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Urban One sale in Detroit...Hmmm...

M

Mediafrog+

Urban One has sold WPZR in Detroit (running its "Praise" format) to EMF. If they are willing to unload a decent signal in such a large market, makes me wonder if KROI could be in play, even to EMF. 92.1 has seen a string of format failures since the 2004 purchase, and I would imagine EMF would love (no pun intended) to get their K-Love format into the Houston market. Or perhaps move Air1 to 92.1 and place K-Love on 103.7.

Of course EMF might not want to add K-Love here in deference to similarly formatted KSBJ.

My understanding is that Univision's rights to the "K-Love" branding in the Houston market have expired, but please correct me if that is not the case.
 
I doubt EMF is interested. If they really wanted a station then they would have gone after 91.7 both times it hit the market.
 
TheBigA said:
Which may explain why 92.1 hasn't been sold. No other buyers for a weak frequency.
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Urban One would have no trouble finding a buyer for 92.1. Despite the deficient signal, it is still located in a huge market, and there is someone out there who would want it. Question would be keeping potential format/demographic competitors at bay. A national religious broadcaster would fit that bill.

Urban One is going to take a big loss on the station, regardless. They bought it for $72 million at the peak of the market in 2004. Now they might get one-third or one-fourth of that price. And that number is not going up in the future.
 
Ryan Williams said:
SportsMap 92.1?
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Not a bad idea if they dump the 94.1 signal. Not sure if Gow can afford it, though. I’m beginning to think they should consolidate 97.5 and 94.1 into a single station, and 92.1 would be a good place for that while ridding themselves of the two lesser FM signals as well as 1560. Also not a format competitor for Urban One.
 
miketheradioguy said:
I wonder if it would be more prudent for Urban One to sell their entire Houston cluster, depending on how much deleveraging they intend to do.
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The two principal Houston stations are the highest billing stations in the whole company. At $18 million and $17 million, KMJQ and KBXX are way ahead of the next highest biller, WKYS in DC at $12 million. They contribute a bigger amount of cash flow, too.

If Radio One wants to deleverage a bit, it will be by selling the gospel, Inspiration and non-Urban format stations.
 
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BamaTX said:
I doubt EMF is interested. If they really wanted a station then they would have gone after 91.7 both times it hit the market.
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TheBigA said:
Which may explain why 92.1 hasn't been sold. No other buyers for a weak frequency.
Click to expand...

I think it mostly had to do with Univision holding the Houston rights to the K-Love branding at the time when 91.7 hit the market twice, which was why they put Air 1 on 103.7 when EMF bought the signal in 2012. Even 91.7 is a weak signal, covering the northern portion of the market, while 92.1 covers the southern portion. Theoretically, if EMF could buy 92.1 from Urban One, they could also buy 91.7 allowing them to cover K-Love in both portions of the market, making it a similar setup to Cox' KGLK/KHPT simulcast of "The Eagle".
 
miketheradioguy said:
I think it mostly had to do with Univision holding the Houston rights to the K-Love branding at the time when 91.7 hit the market twice, which was why they put Air 1 on 103.7 when EMF bought the signal in 2012.
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Univision wasn't using the branding back then. But you have a history of making a bad assumption and presenting it as fact on these boards.

EMF choosing to go with Air-1 has everything to do with KSBJ being as strong as they are in the market.

While any station in America is for sale at the right price, I don't think Urban One is in a hurry to unload 92.1. As David pointed out upthread, Houston makes the company a lot of money, and having a signal you can use as a flanker to protect that income is valuable in a market where somebody was willing to blow up a heritage rocker to come straight at you.
 
Mediafrog+ said:
Not a bad idea if they dump the 94.1 signal. Not sure if Gow can afford it, though. I’m beginning to think they should consolidate 97.5 and 94.1 into a single station, and 92.1 would be a good place for that while ridding themselves of the two lesser FM signals as well as 1560. Also not a format competitor for Urban One.
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I have no idea what Gow's financial picture is. I do know they paid 8-9 million for 1560 and about 5 million for 97.5. Off the top of my head, I would guess 92.1 would go for 12-18 million in current market conditions. That's an incredible disparity from what Radio One paid for it.

This might be incorrect, but it seems to me that Gow is more excited about new media opportunities than expanding in local ota radio.

Also, 92.1 actually has a construction permit to move to the northwest of their current location, which will cover somewhat more of the Houston market. https://fccdata.org/?facid=&call=kr...zip=&arn=&party=&party_type=LICEN&latd=&lond=

The application points to a location that does not currently have a tower, so I guess Urban One is planning to build a new 1400 ft tower? Or maybe they don't and this is application was just a blocker to theoretically maximize the allotment for 92.1 so KSBJ didn't get any ideas about "upgrading" second-adjacent 91.7.
 
Ryan Williams said:
I have no idea what Gow's financial picture is. I do know they paid 8-9 million for 1560 and about 5 million for 97.5. Off the top of my head, I would guess 92.1 would go for 12-18 million in current market conditions. That's an incredible disparity from what Radio One paid for it.
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I would have guessed $20 to $25 million, but in either case a huge loss over the original $72 million purchase price. Perhaps David Eduardo has some insight on the possible sale value of KROI.

This might be incorrect, but it seems to me that Gow is more excited about new media opportunities than expanding in local ota radio.
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Probably true, with the purchase of the CultureMap properties. This is where a consolidation of the radio outlets would make sense, or at lease lease out 97.5 for additional revenue, as they have done with 1560.

Also, 92.1 actually has a construction permit to move to the northwest of their current location, which will cover somewhat more of the Houston market. https://fccdata.org/?facid=&call=kr...zip=&arn=&party=&party_type=LICEN&latd=&lond=

The application points to a location that does not currently have a tower, so I guess Urban One is planning to build a new 1400 ft tower? Or maybe they don't and this is application was just a blocker to theoretically maximize the allotment for 92.1 so KSBJ didn't get any ideas about "upgrading" second-adjacent 91.7.
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The proposed facility, if built, would help them a little in the northern and western parts of the market, moving the 60dBu contour about 6 or 7 miles further out, while reducing the signal area wasted over water.

Ironically the current 91.7 facility exists because (the then) KRTS paid for the (then) KTRU upgrade in 1990 in order to make room for the upgrade of 92.1 a year later.
 
Mediafrog+ said:
I would have guessed $20 to $25 million, but in either case a huge loss over the original $72 million purchase price. Perhaps David Eduardo has some insight on the possible sale value of KROI.
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The problem is the shortage of buyers.

The perfect buyer is EMF, now that they have licensed the K-love name in the markets where the name had historic prior usage. They certainly are in communication with Urban One now, given the Detroit purchase at a price that showed that EMF will pay according to a different set of metrics when it needs to be in a market.

Still, I agree with Mediafrog that the price is unlikely to exceed $20 million given today's market. With stagnant revenues in most markets, the opportunities for rimshots... even good ones... is limited.
 
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