WTEM 980 SOLD for $4.2 million to Urban One! - Page 2
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Thread: WTEM 980 SOLD for $4.2 million to Urban One!

  1. #11
    Quote Originally Posted by seattlesarchiebunker View Post
    Problem is, in the 1970s-80s, WRC-AM was a good full market signal in DC and it’s suburbs before all the sprawl...since about 1985 or so the metro area has doubled in size and 5kW doesn’t even come close to covering the metro at night.
    Of course Urban One owns a bunch of stations in the area. If they want, they could do an FM simulcast with 104.1.

  2. #12
    Daniel Snyder must sell the Washington Football Club

  3. #13
    According to Tom Taylor, the price is 2-1/2 times revenue, which is $1.7 million.
    I read it was 2.5x EBITDA.

    "EBITDA" and "Revenue" are two very different things!

    There's no way in heck that station bills only $1.7 million annually.

    I've seen AM stations with similar facilities, non-mainstream formats, and much lower ratings go for almost as much money in recent years (basically, those stations were sold for stick value).

    I am guessing WTEM ranks near the bottom of the top 10 in Men 25-54. Those are far from impressive numbers for an All Sports station, but nonetheless should be facilitative of several million dollars of annual revenue in a market the size of Washington, D.C.
    Last edited by MarkW; 05-25-2018 at 07:55 AM.

  4. #14
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    Quote Originally Posted by MarkW View Post

    There's no way in heck that station bills only $1.7 million annually..
    Billing is estimated at $11,000,000 last year.

    It was priced, quite obviously, on cash flow, not gross revenue.

    In the Jan-Feb-Mar 3-book average, they were 12th in M25-54 and M35-64.

    The market area has 5.8 million population, and the WTEM 5 mV/m covers 3.7 million. In big metros, the ITU considers 15 mV/m the minimum for consistently good reception, meaning a population of less than 2.2 million has a really decent signal daytime and about 1.5 million at night.
    Last edited by DavidEduardo; 05-25-2018 at 08:46 AM.
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  5. #15
    That revenue estimate seems too high, especially with direct competitor 106.7 drawing stronger ratings and likely being supported by a stronger sales organization.

    WTEM never recovered from the programming kerfuffle of a couple years ago, it seems.

    Isn't 106.7 The Fan usually around fifth or sixth place in demo?

    My guess is 980's true revenue figure (excluding barter) is probably closer to $5 million or $6 million annually and likely trending downward. I must say, it's rather remarkable that no one was willing to pay more than Urban One for the station. There must be a lot of restrictions included in the Asset Purchase Agreement for the benefit of the Redskins organization.

  6. #16
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    Quote Originally Posted by MarkW View Post
    That revenue estimate seems too high, especially with direct competitor 106.7 drawing stronger ratings and likely being supported by a stronger sales organization.
    That includes the station's share of play by play revenue.

    A good example of that is KLAC in LA, which billed $25 million last year on a one share or less. And a power radio of over 3.0.
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  7. #17
    Quote Originally Posted by TheBigA View Post
    According to Tom Taylor, the price is 2-1/2 times revenue, which is $1.7 million. The question is can an outside company make as much with the brand as the owner of that brand? I don't know the answer to that. But I'm sure the things that they can sell are itemized in the contract. As Washington signals go, this one's not bad. It's 50K daytime, down to 5K at night, smack dab in the middle of the dial. This had been the former WRC-AM from the old NBC Radio days.

    They get a nice tower site that recently added the antenna of WMAL-AM, so there's some rent money coming in there. But yes, AM signals in some places have been selling for less than $100K. So any price in the multiple millions is pretty good. And Liggins just pocketed $14 million from an FM in Detroit. So he's got some spare change.
    The WTEM/980 tower site did not add the antenna of WMAL-AM. The antenna of WMAL was added to the WWRC/570 tower site.

  8. #18
    Quote Originally Posted by RoddyFreeman View Post
    The WTEM/980 tower site did not add the antenna of WMAL-AM. The antenna of WMAL was added to the WWRC/570 tower site.
    Correct...at one time 570 was owned by Red Lion, and at one time 980 call letters were WWRC, which led to my confusion.

  9. #19
    That includes the station's share of play by play revenue.
    Ahhh...that makes sense. Thanks for the info. I suspect that revenue stream will disappear going forward, as I presume the Redskins will be selling most if not all of the avails. It's the only way the $4.2 million selling price makes sense.

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