WLFP sold
May 9, 2013“AM Guys LLC” – made up of Ed DeHart and Stephen Zelenko – has purchased WLFP-AM (1550 Braddock) from receiver Mike Craven for $14,515. This according to this morning’s Tom Taylor NOW Newsletter. DeHart managed the station prior to the sale. Business TalkRadio bought the facility in 2007 for $225,000 and operated it as a 4-station syndication operation. The company now owns one station in Greenwich, Connecticut.
UPDATE: Pat Cloonan has more information, including how DeHart and Zelenko were able to get the station so inexpensively.
$14,525 eh? Wow! That\’s sure a hefty hefty mark down from the original asking price of $225,000 when it was put up for sale in January, 2011 by Business TalkRadio Network . I remember seeing that delusional asking price and actually broke out laughing. Think about it – the new owners picked up the station for a price that\’s like getting a 2013 Maserati GranTurismo MC – retails for about $142,900 (Motor Trend) for less than $10,000 that\’s about $1,000 less than a brand new Nissan Versa. Makes me think about how stations are priced these days. I guess the longer you wait the lower the price and how BTRN could have save themselves a lot of time and money if they priced their station at a reasonable price.
The part that I guess I wasn’t too clear about, was that the station was sold from a receiver. Pat Cloonan’s article in today’s McKeesport Daily News/Tribune-Review says that the duo actually made the offer of $14,500 and it was accepted. I will add a link to the article…
Hi Eric,
Yes, I did see that the new owners proposed their successful $14,500 offer to a receiver – but I also thought – wow, if BTRN had originally priced their station at a reasonable amount when they first put it on the market, instead of what they paid for it (not realizing or recognizing that the value had gone down since their purchase) they could have perhaps recouped some actual money from the sale and possibly prevented the station from going into receivership in the first place. But who knows in corporate finance – they could have done well tax wise by doing what they did.
The Receiver was appointed by the SEC due to a criminal case involving the owner. The owner’s assets were frozen and the court appointed Receiver was given the task of selling the assets. This included three radio stations and two radio networks. AM Guys, LLC was in the right place at the right time to get the low price. We also have been around the station since 2004 when we ran The Edge. Most of the equipment belonged to us. After BTRN purchased the station, we provided the equipment and help with keeping the station on the air.
The article stated I managed the station. This is not the case. The station was and currently is managed by BTRN until the sale completes in a few months.
As for the future, we have not settled on a format. We would like to keep the Imus in the Morning show. We would like to move away from the satellite network programs to local shows.
Ed
Congratulations on your acquisition it was good to see you got such a great deal. Although I’m sure that you and your partner already know that it may be tough going… I wish you two the best of luck and hope you do great. I got a special place in my heart for AM station who try to make a go of it.
Is this still going to be a left-wing channel? If so, it’s hard to imagine Imus fitting in with that kind of format.