Re: r&b oldies

[Dan Strassberg <dan.strassberg@worldnet.att.net>]

At 07:24 PM 3/29/98 -0500, you wrote:

> Or could WILD buy 1150 and go 24 hours,with 1090 as r&b
>oldies?
>
The lady who owns WILD (I forget her name) either does not have or will not
spend the money to buy a better facility. She had many, many chances to buy
a bunch of different signals--including 1150--back when AM stations were
going for a pittance (at least compared with current prices). Each time a
deal seemed imminent, she came up with some new bogus reason why the buy
would be a bad deal. It became clear that she either couldn't get the money,
didn't want to spend the money, couldn't make up her mind, or just enjoyed
making owners and station brokers jump through hoops. On the other hand,
I've heard nothing that suggests she's interested in selling WILD either.
So, as long as she owns the station, don't count on WILD getting better
facilities on AM or FM.

As for CBS selling 1150 to a minority group for a below-market price, as has
been pointed out here several times, the rules that gave tax breaks to
station owners who sold stations to minority people at below-market prices
has been history for quite a few years now. Recently, there has been talk of
a new but different rule aimed at increasing minority ownership of broadcast
stations, but so far, all it is is talk. Meanwhile, Mel is NOT in the
business of making charitable donations or selling off properties at
below-market rates. He can't afford such largesse. CBS has a very precarious
balance sheet. He needs all the money he can get to keep up the debt service
(and to maintain the lifestyle to which he has become accustomed).

And wasn't it CBS that won the rights to the NFL for all of those billions
of dollars? That deal just increases the pressure on Karmazin to make the
Radio/TV station group, which he heads, throw off more cash. The stations
are already a cash cow. Karmazin is in charge because he's a master at
generating cash flow. He has no leeway for deals that aren't almost
immediately highly profitable.

- -------------------------------
Dan Strassberg (Note: Address is CASE SENSITIVE!)
ALL _LOWER_ CASE!!!--> dan.strassberg@worldnet.att.net
(617) 558-4205; Fax (617) 928-4205

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