Over the past year, the possible sale of Classic 99 KFUO in St. Louis has been in the news. Classical music lovers are concerned about the sale because KFUO is the only classical music station in St. Louis.
The Lutheran Church Missouri Synod owns KFUO and a buyer plans to turn the station into a Christian Rock format. The FCC has approved the sale and it's supposed to close in a week.
Here's the part I find amazing: the price. The buyer is reportedly paying $18 million for the station plus another $8 million in interest. How is a small to mid-sized FM radio station in St. Louis possibly worth that much? From what I understand, the value is in the license. But $26 million?
Ad revenues are down in all traditional forms of media. Internet and satellite music options are growing. And a local radio station sells for over $20 million? How do the buyers plan to make any money or just break even?