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?
6 comments:
First, "Joy FM", the buyers, are listener supported. They are NOT expecting to make a profit. They have NO ADVERTISING!!! Listeners send them money to keep them on the air- mostly those who listened to WCBW, before it was sold.
They expect that with a bigger market with the stronger signal, they'll be able to reach their expected need. It's the ONLY advertising free Christian music station in St. Louis. They are having their fundraising now for their next fiscal year, called Sharathon.
With all the music available online and via satelite radio, how is this station worth over $20 million?
Don't know how it's worth 18million but it's my understanding that the LCMS had it appraised last year and it did appraise at 18million. The Church is financing the deal themselves because they make more money that way. Rather than giving the interest to the bank.
Announcement was made this morning that the final day of Classic99 broadcasting will be July 6th.
On July 6tj I will oisten to KFUO. On the 7th, I will set my radios to another station.
Christian rock is great for the artists t least. Those artists who don't have the talent or the stamina for the real musical industry can go to the protected world of Christian rock, where a lack of originality is a requirement.
Joy will be gone in a year! and then how are these moron's at the Lutheran synod gonna collector their money?
--- Or is Pujols gonna bail them out,
with money from his new contract?
Hopefully, the cardinals will trade him and his interfering wife away!
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