Wells Fargo analyst Marci Ryvicker believes the 34 Scripps radio stations could bring the company between $46 and $61 million. She also says it’s a tough call because the stations, inherited from Journal Communications back in 2015, have been underperforming “for quite some time.” Here’s what else Ryvicker says about the stations…
Ryvicker says she does not believe the Scripps stations will be sold at the same multiple as the Entercom/CBS transaction (which she says was about 8.4X the seller’s multiple and ultimately under 7X the buyer’s). Ryvicker says the multiple might be in the range of 6-8X on a 2018 EBITDA estimate of $7.6MM which is how she comes up with a gross purchase price of $46-61 million.
And who does Ryvicker believe might be interested in the Scripps stations? “Honestly, we don’t know — traditional acquirers are all busy. iHeartmedia has balance sheet issues, Cumulus is in bankruptcy, and Entercom is integrating CBS Radio. We do know Beasley recently purchased Greater Media but we don’t know CEO Caroline’s Beasley’s appetite.
KTTS and KFDI are still number 1, 20 years after Great Empire owning them. KTTS and KFDI still has news and had full news departments when Journal owned them. Towards the end of Great Empire’s run all of its stations had ageing demos, there was no way the stations could survive with the way Great Empire was running them.
Great Empire had Springfield KTTS and KFDI at the top for over 30 years. Journal RUINED them. They had great NEWS WEATHER and SPORTS and the “48 hour news center” 10 Minute news at the top of the hour Weather 15 after brief news at the half hour Brief weather then sports for 3 minutes. You could set the clock by the programming. And live shows a must in the OZARKS!!!
Lew Dickey, Larry Wilson, nuff said.
EMF might snatch up more stations.
Love the comment above.
I don’t know what’s more stunning. The price range estimation for these 34 stations or the last paragraph of this article. either way. #scary.