TimeIsTight
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« on: May 04, 2012, 11:49:39 AM » |
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The auction results are out, and it looks like Wall Street's Goldman Sachs will be the new owner of WPST, WNJE, and WCHR, at least, until it can sell them to somebody else who is willing to pay what Goldman thinks they are worth.
No doubt, WPST was Nassau's crown jewel, and it would be very valuable to Townsquare Media as part of a Trenton cluster with WKXW in it. But, Townsquare bid $16-million when Goldman wanted $22-million. That does seem like a lot, when you consider Merlin Media just paid that much for a full Philadelphia Market FM signal. But, WPST has a major market sized cume when you add the Trenton, Philadelphia and New York markets together. More importantly, it has a successful business model.
So the question is: Will Townsquare and Goldman be able to find common ground and an acceptable price to both in that $6-million gap? They both have very deep pockets, and very smart financial staffs. It's probably an opportunity Townsquare shouldn't let pass, but if the numbers don't work, the numbers don't work.
As to the other NJ stations, WNJE and WCHR. It probably didn't help that ESPN said this week that it was dropping its LMA of WNJE to relay WEMP. Putting a minimum bid of $700,000 for both stations means even Goldman doesn't see much value there.
You have to wonder what other types of programming might work on WNJE, and who might be interested in using it? WCHR probably has some continuing cash flow from block-time religious broadcasters.
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Nick
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« Reply #1 on: May 04, 2012, 04:48:30 PM » |
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Hmmm, if Goldman Sachs owns those AM stations, perhaps a business news format on WNJE.
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trixter
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« Reply #2 on: May 04, 2012, 05:32:54 PM » |
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The fat lady hasn't sung yet! I bet there will be some wheeling and dealing over the weekend before the Monday hearing!  |
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Danfm
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« Reply #3 on: May 04, 2012, 07:09:20 PM » |
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Will WPST be relocated from West Windsor to the NJ 101.5 studios in Ewing?
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Danfm
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« Reply #4 on: May 04, 2012, 08:31:38 PM » |
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Will WPST be relocated from West Windsor to the NJ 101.5 studios in Ewing?
I misread the story sorry |
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Slinky
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« Reply #5 on: May 04, 2012, 09:07:33 PM » |
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Still a decent chance Townsquare ends up with these stations.
Goldman Sachs is not getting into the radio business. They just think they can negotiate a higher price than the highest auction bid.
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Nick
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« Reply #6 on: May 04, 2012, 11:28:34 PM » |
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Goldman Sachs is going to flip the stations for a profit. They can sell them individually and hope to make more that way. Considering 106.9 was sold to Merlin for a similar price, it seems that 94.5 is overvalued. Merlin only got the license and the transmitter. They had to build a new studio and do major work to the transmitter. The Family Radio audience and brand has almost no value. However, WPST's studio and transmitter are well-maintained, and it's a solid brand that is very profitable.
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badjef
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« Reply #7 on: May 08, 2012, 04:49:45 AM » |
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What has been the effect of WPST moving to 94.5 from 97.5 on Nassau?
Has the swap had a negative or positive effect?
Jeff in Sa-ra-so-ta!
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Jeff in Sa-ra-so-ta! Home to the 2012 American League Wild Card Champion Spring Training Sa-ra-so-ta! Orioles. www.myteamsuspenders.com and tell us you read it here for free shipping of your favorite sports team. |
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Rick B.
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« Reply #8 on: May 08, 2012, 06:47:46 AM » |
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What has been the effect of WPST moving to 94.5 from 97.5 on Nassau?
Has the swap had a negative or positive effect?
The effect on Nassau? They got a bunch of money for selling 97.5 and apparently put on their Bad Idea jeans before deciding how to spend it. As for PST, I don't think the move to 94.5 has affected the on-air product or the public's acceptance of the station at all. The signal is probably a little less desirable overall than the 97.5 was and they have the disadvantages of being effectively a standalone station in a nation of clusters, but they seem to be a fundamentally sound operation. |
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TimeIsTight
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« Reply #9 on: May 08, 2012, 09:55:34 AM » |
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It looks like the bankruptcy court approved all the sales of the Nassau Broadcasting stations as was reported last week. I am assuming that if there were any major changes in bids, with different outcomes, any good reporter would have put them in the lead of her story. So, the fat lady has sung, and it, probably, all went down as expected with no last minute bids rushing in. And no changes in outcome from weekend negotiations. Details here: http://www.law360.com/mergersacquisitions/articles/337898/nassau-broadcasting-s-48m-radio-station-sales-get-clearance(I didn't sign up for the full report, but if anybody does, please post any changes in outcome from what was announced last week) |
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