Gow decides to sell all stations..

[radioislife2020]

Talking to a client today, I discovered that Gow Media is for sale. It is overpriced for the FM and the 1560am dial but the interesting part is that 92.5 is part of the packaged deal. Does anyone care to guess what this amazing opportunity in the Houston market would cost you?
Seems Mr. GOW is ready to move on from the radio. You can buy them separately or all together. For a day timer, I would maybe do a mill for 1560.

Let's make the board fun again cause talking about a missing tower got boring already.

 

[Mediafrog+]

Talking to a client today, I discovered that Gow Media is for sale.

If this is indeed true, it is not surprising. I have long thought, and have posted here several times, that the ultimate fate of Gow Media was being sold to a larger company that would then spit out the radio stations.

There is only so long that you can keep a commercial FM station going with ratings consistently in the low zeroes. KFNC seems to scrape by with a handful of local accounts mixed in with cheesy national advertisers (tax relief, cash loans, questionable health supplements, etc.) Throw in the fact that it has the worst signal of all the rimshots and you have a money pit.

I previously posted that it wouldn’t surprise me to wake up one morning to hear that all the KFNC staff has been laid off, and the station is running ESPN Radio 24/7 pending a sale to a religious broadcaster.

It is overpriced for the FM and the 1560am dial

Heard any numbers? Considering 97.1 went for $3M with a better signal, I would guess no more than $2M for a problem plagued 97.5, and $1.5M might be more reasonable. KFNC is the most distant rimshot for the majority of the market and is frequently clobbered by tropo from KWTX and KFTX.

I wonder if Viet Radio, which currently leases KGOW, would buy the station outright. VR recently purchased KNGO in DFW which might give an idea of what 1560 would go for. The KGOW night site (currently running 24/7 last I checked) has (when running at licensed specs) a major lobe aimed directly at the area of the metro where most Vietnamese speakers live and work, so actually a good signal for that particular format. If I was Viet Radio and owned 1560 I would apply to run the current night site permanently around the clock, and abandon the trouble plagued day facility.

but the interesting part is that 92.5 is part of the packaged deal.

Likely the contract to air programming on 92.5. Let’s not get into the technical legalities of K223CW which have been endlessly hashed over on this board…a rabbit hole I don’t want to revisit.

Seems Mr. GOW is ready to move on from the radio.

The various “Map” websites are the big enchilada here, likely to go to a bigger internet content company that won’t want anything to do with radio.

For a day timer, I would maybe do a mill for 1560.

KGOW is licensed for full time operation. I could see $750k, but check my earlier comment on KNGO.

Let's make the board fun again cause talking about a missing tower got boring already.

Agreed.

 

[stan]

Probably long overdue.

 

[Mediafrog+]

Guess we should ask the OP: Is it just the radio assets up for sale? Does that include the national SportsMap Radio Network? Or are the various CultureMap and SportsMap websites also on the block?

 

[exdjted]

Guess we should ask the OP: Is it just the radio assets up for sale? Does that include the national SportsMap Radio Network? Or are the various CultureMap and SportsMap websites also on the block?

Good question. I would rather make a run at Sports Map and not waste time with those signals.

 

[Astros2023]

Talking to a client today, I discovered that Gow Media is for sale. It is overpriced for the FM and the 1560am dial but the interesting part is that 92.5 is part of the packaged deal. Does anyone care to guess what this amazing opportunity in the Houston market would cost you?
Seems Mr. GOW is ready to move on from the radio. You can buy them separately or all together. For a day timer, I would maybe do a mill for 1560.

Let's make the board fun again cause talking about a missing tower got boring already.

If the veracity of this statement holds, it would manifest as a partial truth due to the incongruity in selling the entire package while having the 1560 property leased out lucratively for an extensive period, thereby indicating that Gow Media does not possess ownership rights over 92.5. KFNC 97.5 could only be sold, and I believe it would pose considerable challenges to sell it at the initial acquisition cost.

 

[lanceventa]

If the veracity of this statement holds, it would manifest as a partial truth due to the incongruity in selling the entire package while having the 1560 property leased out lucratively for an extensive period, thereby indicating that Gow Media does not possess ownership rights over 92.5. KFNC 97.5 could only be sold, and I believe it would pose considerable challenges to sell it at the initial acquisition cost.

Why couldn't 1560 be sold? Just because a property is leased does not mean it cannot be sold. Contracts can have out-clauses or the person they're paying the rent check simply changes.

Similarly, Gow may have an option to purchase 92.5 that can be exercised and transferred to have a third party.

Guess we should ask the OP: Is it just the radio assets up for sale? Does that include the national SportsMap Radio Network? Or are the various CultureMap and SportsMap websites also on the block?

SportsMap's website looks to have zero advertising or other monetization on it right now.

 

[HTX]

I wonder what religious organization would be interested in 97.5. Maybe KHCB-AM?

 

[Astros2023]

Why couldn't 1560 be sold? Just because a property is leased does not mean it cannot be sold. Contracts can have out-clauses or the person they're paying the rent check simply changes.

Similarly, Gow may have an option to purchase 92.5 that can be exercised and transferred to have a third party.

SportsMap's website looks to have zero advertising or other monetization on it right now.

In my perspective, this scenario can be categorized as one that is predominantly influenced by subjective views with scanty or no substantiation. I have never stated that KGOW (1560 AM) is not capable of being sold. If the price is suitable, everything can be purchased. Let us adhere to the facts. KGOW has entered into a highly profitable, enduring leasing agreement with a Vietnamese radio , which greatly benefits the Gow media company. Indeed, Gow Media has the ability to sell KGOW am as well as KFNC; however, they do not possess any additional radio stations within their ownership to offer for sale. The ownership of 92.5 remains with Hector's former spouse.

 

[radioislife2020]

try this on for size ..5.7mil for the FM the AM and the translator.

 

[Astros2023]

I wonder what religious organization would be interested in 97.5. Maybe KHCB-AM?

In my view, (EMF) might also be a suitable acquirer for KFNC. However, it is likely that they would aim to make a significantly low offer of $1 million - 2million to Gow, considering their recent acquisition of KTHT for $3.1 million. Based on my understanding, it seems that the Houston Market lacks a radio station that caters to conservative Hispanic Christian beliefs. Dolly Martin has accomplished an exceptional task in upholding the conservative ideology and alignment of KHCB AM with KHCB FM. I fully concur with your viewpoint that KHCB would serve as a suitable purchaser or a potential competitor to KSBJ if they purchase KFNC fm.

 

[Astros2023]

try this on for size ..5.7mil for the FM the AM and the translator.

What is your intended message? Are you substantiating your statements with verified evidence? Alternatively, have you initiated a substantial instance of spreading rumors, which could likely result in the entire workforce at Gow Media facing termination in the next few months? The figures provided do not align with the recent sales prices observed within the Houston Market for radio stations. I would greatly appreciate authentic and verifiable sources of information. Please do not misunderstand me; I thoroughly enjoy engaging in a cordial and productive discussion that is rooted in verifiable information.

 

[BamaTX]

Talking to a client today, I discovered that Gow Media is for sale. It is overpriced for the FM and the 1560am dial but the interesting part is that 92.5 is part of the packaged deal. Does anyone care to guess what this amazing opportunity in the Houston market would cost you?
Seems Mr. GOW is ready to move on from the radio. You can buy them separately or all together. For a day timer, I would maybe do a mill for 1560.

Let's make the board fun again cause talking about a missing tower got boring already.

If this rumor is true, I'm pretty sure the 92.5 part of the "package" would be the rights to the lease and not necessarily ownership of 92.5.

Having said that, I'm not sure if now is the best time to sell. It is rumored that Univision has secretly put their radio division on the market. Of course, Univision will likely sell to one buyer instead of selling market by market. But it is indirect competition nonetheless. Best case scenario, a local south Asian or Vietnamese broadcaster buys the Gow stations. Worst case scenario, both stations are swallowed up by another religious broadcaster.

 

[Mediafrog+]

try this on for size ..5.7mil for the FM the AM and the translator.

Fantasy land. Counteroffers will begin at one-third of that price, if even that.

In my view, (EMF) might also be a suitable acquirer for KFNC.

Why would EMF want KFNC? They already have K-Love and Air1 in both the Houston and Golden Triangle markets…unless they want to add a signal for the associated Radio Nueva Vida.

Based on my understanding, it seems that the Houston Market lacks a radio station that caters to conservative Hispanic Christian beliefs.

Huh? What are all those Spanish language religious AMs, translators and LPFMs? Plus Vida Unida.

Dolly Martin has accomplished an exceptional task in upholding the conservative ideology and alignment of KHCB AM with KHCB FM. I fully concur with your viewpoint that KHCB would serve as a suitable purchaser or a potential competitor to KSBJ if they purchase KFNC fm.

How would a Spanish language religious format on 97.5 be a competitor to KSBJ? Unless you are actually talking about sibling KHVU.

Alternatively, have you initiated a substantial instance of spreading rumors, which could likely result in the entire workforce at Gow Media facing termination in the next few months?

Nothing any of us say on this board is going to have any effect on the jobs of anyone with Gow Media. If David Gow wants to sell, he’s gonna sell. Happens all the time in the broadcast biz…anyone who has been booted as the result of an ownership change (including me) will tell you that.

It is rumored that Univision has secretly put their radio division on the market.

Chatter on the DFW board that Estrella Media may be about to get out of the radio business. If TelevisaUnivision does the same we could have seven Houston market FMs in play, eight if you include KFNC.

Best case scenario, a local south Asian or Vietnamese broadcaster buys the Gow stations.

The 97.5 signal is totally unsuited for any Asian format, as those demographics are concentrated in the SW part of the market, far away from the transmitter.

Worst case scenario, both stations are swallowed up by another religious broadcaster.

Religious broadcasters have plenty of money to spend, unlike many commercial groups. Just ask Radio One and the Sugarland Station Trust, which are struggling to pry money out of SBS to complete the sale of KROI.

 

[nd2023]

If this rumor is true, I'm pretty sure the 92.5 part of the "package" would be the rights to the lease and not necessarily ownership of 92.5.

Having said that, I'm not sure if now is the best time to sell. It is rumored that Univision has secretly put their radio division on the market. Of course, Univision will likely sell to one buyer instead of selling market by market. But it is indirect competition nonetheless. Best case scenario, a local south Asian or Vietnamese broadcaster buys the Gow stations. Worst case scenario, both stations are swallowed up by another religious broadcaster.

If K223CW gets sold the new owner will likely make sure its signal is compliant. And would then lose most of the ill-gotten present coverage area.

 

[radioislife2020]

What is your intended message? Are you substantiating your statements with verified evidence? Alternatively, have you initiated a substantial instance of spreading rumors, which could likely result in the entire workforce at Gow Media facing termination in the next few months? The figures provided do not align with the recent sales prices observed within the Houston Market for radio stations. I would greatly appreciate authentic and verifiable sources of information. Please do not misunderstand me; I thoroughly enjoy engaging in a cordial and productive discussion that is rooted in verifiable information.

a bit uptight astros. Every station is for sale for the right price and everyone in the radio industry knows your job is day to day. I won't sit here and share evidence but if you google a pretty popular page that handles buying and selling stations you might find all the proof you seek. My source is coming directly from inside the building.

 

[stan]

I wonder what religious organization would be interested in 97.5. Maybe KHCB-AM?

We’re already saturated with ‘religious organizations’ in Houston radio.

 

[Kemosabe]

Ah, here's WFME's opportunity to expand its nocturnal coverage!

 

[Mediafrog+]

I wonder if Viet Radio, which currently leases KGOW, would buy the station outright. VR recently purchased KNGO in DFW which might give an idea of what 1560 would go for.

Following up my own post: I dug up the Asset Purchase Agreement for Viet Media’s purchase of KNGO. Price was $1.1M. KNGO is 50kw during the day and has pretty solid coverage of DFW. The night signal is only 1.9kw with a lot of holes, but still covers most of Dallas County as well as upscale areas of the north-central parts of The Metroplex. So better overall market coverage there than what KGOW offers in Houston.

I’ll stick with my earlier number of $750k for Viet Media to purchase KGOW outright. The station has a non-functional day site and a technically troubled night site, which drags the value down. Even operating with licensed parameters KGOW has coverage gaps. If I was VM I would start with an offer in the $500-600k range.

Safe bet that a call letter change would be a stipulation for a sale of 1560.

 

[HTX]

We’re already saturated with ‘religious organizations’ in Houston radio.

Agreed. Don’t know who else would actually be interested in that signal though.