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No news release yet, but CHUM (CTVglobeMedia) will be purchasing CFXJ 93.5 (Flow FM) Toronto from Milestone Radio Inc... This follows Rogers' purchase of Bob FM London and The Bounce FM Edmonton from CHUM.
 

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Gives CHUM radio 2 FM stations in the Toronto market. Loks like CTV/CHUM are looking at beefing up their clusters. CHUM has a single station in Calgary, I would think that it would be in play as well.
 

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This follows Rogers' purchase of Bob FM London and The Bounce FM Edmonton from CHUM.
Had to make the money to buy Flow somehow.

I wonder if Flow will go back to a complete Rap/R&B/Urban format since they do have some overlap right now with CHUM-FM.
 

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Funny it was such a big deal to have Milestone receive this licence for unserved markets and now they flip it. Be interesting if CHUM flips it to Top 40.
 

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Funny it was such a big deal to have Milestone receive this licence for unserved markets and now they flip it.
It's happened in lots of markets now. Little operator gets licence and a year later flips it to a Rogers or Corus and makes a million bucks. In the past I have argued that stations should be required to turn back the licence if they don't operate for at least six years or the length of the license to avoid people making windfall profits.
 

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In the past I have argued that stations should be required to turn back the licence if they don't operate for at least six years or the length of the license to avoid people making windfall profits.
The CRTC does have a licence trafficking policy for competitively-licensed stations within their first term of licence. Although to be fair, enforcement has been somewhat selective (e.g. if a whole company with several licences, of which a new station is only a small part, is being sold to new owners, there usually won't be issues with that).

In this case CFXJ has been on the air since March 2001 (i.e. first licence renewal in 2007 or 2008) so it wouldn't be affected by the policy.
 

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Yeah JoshG, I'm aware of that. Once again the CRTC capriciously decides when to enforce its own rules! As for Flow selling, I have no problem since it is well past renewal times. I was just angry when a couple of year or two old radio and television stations were sold in the last few years for millions of dollars.

Getting a license in a Major market is essentially a windfall profit so companies literally become speculators who get the licence and then flip it for millions.
 

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The license should not be theirs to sell.They should only be able to sell the transmitter,building etc.A call for applications to use the frequency should occur.
 

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The license should not be theirs to sell.
I totally disagree. There would be no incentive to build a popular profitable station if you could never sell it.
 

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If they sell then the new owner must stay with whatever format the station was playing and adhere to all requirements of condition of license.To many times CRTC picks an application for a new station with a certain format from a bunch of applications and then the station sells for profit and is bought by one of the other original applicates and switches to a format the was originally turned down.Whats the point of having the CRTC in the first place then.
 

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Current multiples for Radio Stations

Hi,

Not sure if anyone knows this ... but I was wondering what multiples TO radio stations are selling for these days.

My understanding is that radio stations typically sell for a multiple of Broadcast Cashflow (BCF), Revenue or EBITDA. Industry multiples are around 5-9x BCF ... however it depends on the market.

Flow 93.5 apparently sold for $27 million ... which implies that the station was generating BCF of between $3.0mm and $5.4mm per year. Milestone Inc. is a private company ... so I don't even know if they generate that type of cash.

Is it possible CHUM paid a higher multiple?
 

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All references to Bell media (formerly chum radio / ctv globe media) were removed from flow 93.5 web site today. interesting, I wonder who the new owners are? or did they transfer the assets into a new company temporarily pending sale?
 
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