RE: the demise of WEVD

["Hakim Madjid" <HMadjid@mindspring.com>]

Well if Forward manages to conservatively invest their $87 million windfall,
assuming Disney/ESPN exercises their option, with let's say a five percent
return, that will generate roughly $4 million per year in income without
having to touch the principal. I assume that kind of cash flow could help
support their print media operations for a long while.

How much yearly revenue was WEVD generating for them, I wonder?

73, de Hakim (N1ZFF)

-----Original Message-----
From: owner-boston-radio-interest@bostonradio.org
[mailto:owner-boston-radio-interest@bostonradio.org]On Behalf Of Dan
Strassberg
Sent: Sunday, September 02, 2001 10:29 PM
To: Boston Radio Interest; Donna Halper
Subject: Re: the demise of WEVD



I think it is questionable whether Forward's _new_ $87-million "endowment"
will save the company for very long (that is, for more than maybe 10 years).
WEVD 1050, with its mostly brokered-time format, was quite profitable, and
those profits went to support the newspaper. However, even the cash that
WEVD threw off plus the earlier "endowment" (from trading the FM for an AM)
couldn't support the newspaper business indefinitely. Forward seems to have
a long-term strategy of using radio properties to support its newspaper. But
since Disney now holds an option to buy WEVD, it looks as if Forward has run
out of radio properties that it can use to support its newspaper habit.

--
Dan Strassberg, dan.strassberg@att.net
617-558-4205, eFax 707-215-6367