[BC] Auction 62

[Mark Humphrey]

In major markets, the recent rule-of-thumb for FM "stick" value has been
$20/person within the 60 dBu contour.  (Total population, not 12 plus and/or
45 minus)  In fact, the sale of KRTS there in Houston to Radio One for
70-some million was found to agree closely with this guideline.  (The seller
threw in the transmitter equipment for a few bucks more!)

So maybe the bidders on these backwoods allocations have  based their offers
on a similar formula, adjusted downward to account for market size.

Interesting to ponder: Using the same guideline, XM or Sirius, with
nationwide coverage, would sell for about $6 billion  -- per channel!
Until satellite receiver penetration catches up with FM, this isn't really a
valid comparison, but it does make XM's debt of $1 billion look a bit less
frightening.

Mark


On 1/17/06, Fred Morton <radioguy at airmail.net> wrote:
>
> I have...it's amazing to see the figures that folks are plunking down for
> some not-so-good allocations.
>
> Fred Morton
> Houston
>