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SBS Buys KROI for $7.5 million

DavidEduardo

DavidEduardo

Moderator/Administrator
Staff member
"Spanish Broadcasting System has signed a deal to buy gospel “Praise 92.1” KROI Houston from Urban One for $7.5 million. The transaction marks the Hispanic broadcaster’s entry into market No. 6. KROI is one of two FMs Urban One is spinning off to comply with the FCC’s local ownership limits to close its $27.5 million purchase of Cox Media Group’s four-FM cluster in H-Town."

From: Inside Radio
 
Well that was hammered out more quickly than expect… high fives for all of your SBS guesses and the price range was about what we thought too but perhaps on the lower end of the scale.

With this sale announced with a price, I would now expect KTHT to go for between 5-6 million.
 
I would like to take this moment to take off my hat to all you fine gentlemen in this board. You guys are genius!!

Unless you all had some info you all couldn’t share?

But you all guessed correctly. Now to see what will their station be? Regional Mexican or Reggaetón/Bachata/ ect.


Don’t they have a station named Latino? I would rule that name out due to very similarities with Latino Mix.

So maybe La Ley? Or Ritmo?
 
I'm disappointed, but not too much because Gospel music was never my cup of tea, so I'll be interested to see what happens. Tropical? Maybe Tejano? For the love of all that is good, please don't let it be another Regional Mexican or Latin pop station.
 
gimmetheoldies said:
I'm disappointed, but not too much because Gospel music was never my cup of tea, so I'll be interested to see what happens. Tropical? Maybe Tejano? For the love of all that is good, please don't let it be another Regional Mexican or Latin pop station.
Click to expand...
That is what’s in style right now MEGA, LATINOMIX, POWER. So I wouldn’t be surprised if it’s something similar to those 3.

Most likely it will destroy K287BQ POWER
 
Ryan Williams said:
Well that was hammered out more quickly than expect… high fives for all of your SBS guesses and the price range was about what we thought too but perhaps on the lower end of the scale.

With this sale announced with a price, I would now expect KTHT to go for between 5-6 million.
Click to expand...
They’re going to put 97.1 into a trust and hang onto it as long as they can. They’re not going to get what they ask for, and RO knows it
 
gimmetheoldies said:
I'm disappointed, but not too much because Gospel music was never my cup of tea, so I'll be interested to see what happens. Tropical? Maybe Tejano? For the love of all that is good, please don't let it be another Regional Mexican or Latin pop station.
Click to expand...
Not Tropical or Tejano. With the coverage 92.1 offers, a niche format is not the way to go. SBS will likely launch some type of Regional Mexican format. Univision has been the market leader for a while and needs a good challenge. The Estrella properties have coasted along since the LBI bankruptcy and the independent translators are irrelevant and poorly programmed.

Having said that, if SBS wants to compete in this market, then they should have picked up KTHT as well. You can't take on KLTN or KLOL with partial market coverage. A 92.1 and 97.1 combo would give them a chance to compete with any stick in this market (just like The Eagle is doing with two frequencies).
 
I was really hoping the buyer to be Entravision, they would have had Erazno y La Chokolata and also Piolin on La Picuda or La Tri Color .
 
Mrtejano said:
That is what’s in style right now MEGA, LATINOMIX, POWER. So I wouldn’t be surprised if it’s something similar to those 3.

Most likely it will destroy K287BQ POWER
Click to expand...
All three stations aren't exactly the same . To begin with, Power seems like a station without an identity. They're trying too many things at the same time.

There simply isn't enough ratings to go around between KLOL and KAMA.
 
Mrtejano said:
I would like to take this moment to take off my hat to all you fine gentlemen in this board. You guys are genius!!

Unless you all had some info you all couldn’t share?

But you all guessed correctly. Now to see what will their station be? Regional Mexican or Reggaetón/Bachata/ ect.


Don’t they have a station named Latino? I would rule that name out due to very similarities with Latino Mix.

So maybe La Ley? Or Ritmo?
Click to expand...
Names do not indicate formats unless the name comes out of format-specific terminology. So they can give the new station any name they find appropriate for the market and the format they pick.
 
Mrtejano said:
I was really hoping the buyer to be Entravision, they would have had Erazno y La Chokolata and also Piolin on La Picuda or La Tri Color .
Click to expand...
Entravision is not buying in "old media". All their revenue growth is in new technology.
 
Mrtejano said:
That is what’s in style right now MEGA, LATINOMIX, POWER. So I wouldn’t be surprised if it’s something similar to those 3.

Most likely it will destroy K287BQ POWER
Click to expand...
I wonder if they decide to go regaeton if they would consider bringing the Ritmo branding here, or if that is too Cuban/Caribbean for the Houston market.
 
DavidEduardo said:
Names do not indicate formats unless the name comes out of format-specific terminology. So they can give the new station any name they find appropriate for the market and the format they pick.
Click to expand...
I know, I just couldn’t find the right terminology to the format these 2 have.
 
BamaTX said:
Not Tropical or Tejano. With the coverage 92.1 offers, a niche format is not the way to go. SBS will likely launch some type of Regional Mexican format. Univision has been the market leader for a while and needs a good challenge. The Estrella properties have coasted along since the LBI bankruptcy and the independent translators are irrelevant and poorly programmed.

Having said that, if SBS wants to compete in this market, then they should have picked up KTHT as well. You can't take on KLTN or KLOL with partial market coverage. A 92.1 and 97.1 combo would give them a chance to compete with any stick in this market (just like The Eagle is doing with two frequencies).
Click to expand...
I mean SBS could still end up buying KTHT. It would be a good idea to do an Eagle-style simulcast between 92.1 and 97.1. Interesting thing is that if SBS does put Regional Mexican on 92.1, this would be the third time 92.1 reverted to a previous format: they reverted to Top 40 (which they first did in the 80s) with Radio Now in 2017, reverted back to Praise in 2021, and now potentially Regional Mexican (remember La Mera Mera?).
 
Well, no surprise here, and the deal makes sense and will probably not compete with the new RO cluster.

The $7.5M sale price is even less that what was expected maybe three or four years ago, when the guess for 92.1 was $10-15M.

Bottom line: RO took a 90% haircut on its original $72.5M investment in 2004. Converting to inflation adjusted dollars, the loss is 94%. I’ll say it once again: Michael Stude was a genius.

Guessing a music intensive Regional Mexican format is on the way, which will do the most damage to La Raza.

And speaking of La Raza: I have to wonder if SBS might also have its sights on the Estrella Media stations here, as well as in DFW. Could have a decent cluster with 92.1, 98.5 and 107.9, while dumping the irrelevant 101.7. It would appear Estrella is easing its way out of the radio business to concentrate on TV.

SBS also gets a nice new transmitter facility. Do they run any HD subchannels in their other markets? (92.1 has been in HD since the new transmitter launch, but only with HD-1.)

I’m still thinking VCY America for 97.1, but RO is probably holding out to see if a minority owned broadcaster steps up to the plate with a competitive bid.
 
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