I WANDERED through a maze of tables into the back corner and began munching on a club sandwich --lunch was on the guest who wanted to talk shop and overall schmooze --we do this a lot --I wasn't expecting a whole lot and really concentrated on the delicious bacon and turkey I devoured and accompanying fries, and then came a shocker from the lunchmate, an industry veteran:
"KGO is for sale." "What?, I gasped. "KGO Radio?" For Sale? That can't be right, I thought.
Then again, the news of Cumulus selling a big-market radio station is proof positive, enter WABC in the Big Apple.
It can happen and then some.
Here's the skinny:
Cumulus is selling its big top stations so it can liquidate some of its more lucrative assets to keep in line its BK status and raise some much-needed cash to stay alive, not just now but for the future. Which is why selling KGO in the Bay Area makes sense and getting Top 10 market money for it.
Cumulus propped up KGO in March with a revamped weekday line-up of talk hosts and went back to its original news-talk roots; so far, it hasn't set the Bay Area on fire with only modest buzz and barely a ripple. The upcoming election is always a ratings boon and there's tremendous interest in a race featuring the unpredictable and zany current Prez, Donald Trump. That said, KGO is still largely underperforming. Does KGO Radio even make money anymore? Ask 12 people and you'll get 12 different answers.
In its heyday, KGO used to bill more than $50 million dollars yearly but it's not 2000 anymore. KGO has a supreme dial position but hardly anybody listens to AM radio anymore except me and the commuter crowd interested in traffic on the approach to the Bay Bridge which is largely why KCBS exists.
What could KGO fetch and who would buy it? In a perfect world, a guy like Jim Gabbert, who used to love the originality of the old KGO and its top-flight format but Gabbert isn't interested in such a venture preferring to live out his remaining years flying airplanes in Mexico.
If a WABC could fetch only $12M; a legacy station with historic call letters could KGO Radio be a steal? My contact told me the magic number to Cumulus was north of 8 million bucks.
Let the negotiations begin.
Rich Any chance the A's might by KGO? Fischer has deep pockets?
ReplyDeleteDeep pockets, and short arms.
DeleteMaybe even, buy, KGO
DeleteNot a bad idea at 9:00am.
DeleteThe A's need their own flagship radio station.
810 on the dial is perfect for am broadcasts.
The signal carries well at night.
Fischer, what are you waiting for ?
I'll give 'em five bucks for it.
ReplyDeleteSpeaking of Gabbert, how is his health? You aware of what he's going through?
ReplyDeleteIs he ok? What’s the deets?
DeleteObviously not aware of health issues as Rich says Jim is flying planes in Mexico.
DeleteStandard General a new media company just bought a couple of New York City radio stations from Emmis Communications...possibly they could be interested in buying...just a thought!
ReplyDeleteIf I buy it I want resumes and bra sizes from all of the current talkers.
ReplyDeleteYou are gonna be mighty disappointed when you find out the the biggest bra is Chip Franklin's for his moobs, followed closely by Ronnn who stuffs one in his BVD's.
DeleteMaybe Fatnich and Lowenstein can buy it. The blokes can go live or run "best of" programming. "Best of"...that's a snicker. Yup, what the Bay Area and half of America needs when you can hear the signal in Truth or Consequences, New Mexico -- 24/7 of annoying noise.
ReplyDeleteYeah, and Bristow can do the news. He works all the time anyway, until recently that is. No need for him to have a "best of" segment.
DeleteI'll take "2 people living rent free in 10:44's head for $500, Alex".
DeleteMy prediction is that Univision will buy KGO radio.
ReplyDeleteRonn Owens, you better brush up on your spanish.
Everything is for sale for the right price. Cumulus has taken its' dear sweet time in getting around to selling off assets to save its' ass, I'm surprised they didn't go this route sooner. Probably had to clear BK first.
ReplyDeleteKGO will likely be bought up by:
- A Spanish, Chinese or Korean language broadcaster who will benefit tremendously from the reach of KGO (Cumulus only markets advertising in the city and County of SF, they don't know how to handle the rest of the state).
- A religious broadcasting company, such as the one that just bought 5 stations from Cumulus including WPLJ-NY, a legendary station if there ever was one.
If you are hoping for a white knight to emerge and return the station to its' talk-radio glory days, I'm sorry; I just don't see it happening at this time.
c'mon John Rothmann! this is your big moment
ReplyDeleteRumors and my guess....all Spanish language station. Hispanics are the biggest and growing demographic.
ReplyDeleteVisit the Bay Area and you'd see it was now Asians.
DeleteOnly $8 million??
ReplyDeleteSavage can take it over and run a true conservative station.
I love that people are like "Spanish...Chinese...Indian..." Don't you think these people know how to use the internet? They have podcasts and outlets as well. I hope Rich finally gives this up when they do sell because we will have come full circle.
ReplyDeleteThe price of a media outlet is typically measured in multiples of cash flow (what's known as ebitda). Does KGO have any cash flow? I would assume the Cumulus SF cluster has some nominal cashflow, coming from KNBR or one of the FM stations, but my guess is that KGO 810 is losing money. KSFO probably is too. There's not much value in a property that loses money. WABC is worth something because it makes money. KGO is worth nothing, and that's why nobody has bought it. Cumulus would be better off flipping it to all satellite programing.
ReplyDeleteAnyone ever hear Fisher speak? I haven't. Very odd owner.
ReplyDeleteI need to hurry up and win the Lotto! Could hire Rich!
ReplyDelete