Pattison buys 9 stations from Rawlco

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Re: Pattison buys 9 stations from Rawlco

Postby merlin » Fri Jul 11, 2014 6:54 am

Why wouldn't Pattison want Regina and Saskatoon ?? I can understand Pattison is maxed out in Calgary but the money makers in Saskatchewan are Regina and Saskatoon. ??
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Re: Pattison buys 9 stations from Rawlco

Postby albertaboy4life » Fri Jul 11, 2014 8:27 am

Pattison may have wanted them only to be told they weren't for sale.

There have been rumours about Rogers having first dibs on the Regina and Saskatoon stations dating back to Rawlco securing the rights to use the JACK FM branding in Regina, if not even earlier than that. Rogers grew its Calgary holdings by buying 660 AM and 96.9 FM from Rawlco in 1999 and had an LMA with Rogers for 92.5 FM in Toronto which was also sold to Rogers.
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Re: Pattison buys 9 stations from Rawlco

Postby slowhand » Fri Jul 11, 2014 8:51 am

Gotta believe that we have to wait for the other shoe to drop. I just can't see any other situation than this deal being one of a two part decision by Rawlco. Pattison even talks about how long this deal has been in the works which tells me that it has been waiting until the other half of the deal was worked out, for Regina, Saskatoon and Calgary.

The other deal may not even be a sale like this one. With the knowledge that Rawlco would be no more, a group of Rawlco employees might even have got together and cherry picked the stations they wanted.

There may even be a third deal in the wings if Deal Number Two was only for Regina and Saskatoon. Pattison would have been offered Calgary but couldn't take it. Rawlco may be shopping around the Calgary station separately.

Guesses, yes, with a strong feeling that Pattison got second choice on the Rawlco stations. It just smells like someone else picked what they wanted before Pattison was given his choice from the rest.
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Re: Pattison buys 9 stations from Rawlco

Postby Tenax » Sat Jul 12, 2014 7:49 am

Rogers had first dibs for Sask stations if Gord ever sold going back to 1999 and Rogers other acquisitions. Paul Ski Rogers Radio CEO doesn't like small markets as it is. I imagine he couldnt be be bothered with pa, meadow lake..Regina and Saskatoon especially are big moneymakers for Rawlco. Matter of fact Saskatoon was described as back the truck up and load the wheelbarrows with money.. I would not be surprised if saskatoons bottom line was higher than any other market Ralwco had ever been in. I also remember talk that Gord actually had put Saskatoon anyway in his kids names. A nice trust fund that:) maybe he "gave" one market to one kid, one to the other.
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Re: Pattison buys 9 stations from Rawlco

Postby slowhand » Sat Jul 12, 2014 8:00 am

Tenax's Rogers scenario means that UP in Calgary will have yet a third buyer. Rogers already owns Lite and Jack on FM.

Harvard sounds more and more like the new owner of UP. What will it become? Another HOT or Cruz? How about My?
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Re: Pattison buys 9 stations from Rawlco

Postby Tenax » Sat Jul 12, 2014 11:47 am

I can't see Cruz format. Between Jack and XL I think Cruz couldn't pull enough share to bother. He'll I'd probably put a second country stick in the market.
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Re: Pattison buys 9 stations from Rawlco

Postby Bigbangboom » Fri Sep 12, 2014 7:31 am

purchase price for this deal - 104 Million, plus others and tangible benefits - total deal is about 112 Million.
that's huge!
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Re: Pattison buys 9 stations from Rawlco

Postby Tom Jeffries » Fri Sep 12, 2014 9:08 am

How much did they pay for these properties?

In this economic climate, I find this borderline crazy.

Time will tell.

Maybe Jimmy needs a large tax loss?

Hmmmmm.
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Re: Pattison buys 9 stations from Rawlco

Postby Bigbangboom » Fri Sep 12, 2014 1:42 pm

c'mon - edmonton is a 100 million dollar market - Now is number 1 (owns the market) and UP is 6th. combo sell they are taking a HUGE amount of revenue from the market - i bet 15% and cashflowing 40% of that.
PA, NB - 6 stations that own the market.

it seems high yes - but likely a pretty fair price. these stations probably cashflow 10-12 million a year. the purchase price is about 10x cashflow.
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