"IBOCcrock" wrote in message
ups.com...
On Sep 24, 8:50 am, "David Eduardo" wrote:
"IBOCcrock" wrote in message

ups.com...

Radio Sold Its Soul

"Wall Street has soured on radio. How many investment banks still
actually have a full-time analyst watching this segment? Look to the
falling price of properties. To the few radio deals that get gone
these days. To the pessimism on Wall Street that has put the damper on
the future of radio."

There is more money looking for stations than there are stations for
sale.
That usually means an increased price. Clear Channel felt the market was
undervaluing its assets and cash flow, so they are going private.
Univision
did the same early this year, for over $12 billion. Station prices for
decent facilities have shown no erosion, as proven by the Clear Channel
and
CBS spin-offs.

Going private is a retreat strategy - Wall Street has smelled out HD
Radio. CC has gone from a high of $90 to a low of $30/share. Broadcast
radio is dying and HD wil l ust accelerate its death.


HD has nothing to do with radio stock prices... the investment per station
is a tiny drop in corporate capex budgets (we spent about 10 times more in
LA for one morning show studio than putting HD on 5 signals). Many stocks
were very high in 1999 (when CCU peaked in the 80's) and have never
recovered after the dot com crash... it has to do with the markets, not the
companies.

Going private is a future strategy: buy now, when the market undervalues,
and in 3 to 6 years, go public again based on value and profits.