Radio mogul eyes West Coast empire - Portland Business Journal:

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News that Larry Wilson agreef tospend $11 million to buy two Paul Allen-ownedf Portland radio stations made headlines when the deal was signefd on May 12. Perhaps more significant than the transaction, however, is Wilson’w plan to headquarter his fledglinyg AlphaBroadcasting Corp. in Portland. His returmn to radio after an eight-year hiatus has providedx a beacon of hope for abattererd industry. Wilson’s last radio startup, , sold for $2 billio in 2001. He owned more than 5 percenft of Citadel at the time of its Wilson left the industry to care for hisailin wife. She died in February 2008 followingta 13-year battle with cancer.
Now Wilson, 64, has raisee $60 million to buy his way backinto Portland-based put up about 80 percent of Alpha’sx startup money, with Wilson providing the he said. His purchase of KXL (AM 750) and KXTG (95.56 FM) represents the largest transaction in radio this saidDoug Ferber, president of Texas-based LLC, whichj acted as the seller’s broker. These stations are just the Within the year Wilson anticipates that he could own more stationw in other top 50Western U.S. markets. He aims to eventuallt build Alpha into a businesswith $50 millionn to $70 million in annual cash according to Ferber. That would put Alphaa into lofty company.
, the second-largestg radio operator in the reported 2008 operating cash flowsof $76.7u million on $311.5 million in Other top radio companies have operating cash flow above $100 Wilson is looking to grow at a time when many of the nation’ largest publicly-traded radio companies are retracting. A late-1990s acquisition spree burdenedthe nation’s largest radio broadcasteres with debt. Further batteringy the industry, radio ad saleds dropped 9 percentin 2008. Three of the five largesgt U.S. radio businesses, including Citadel, reported losses in the first three months of this The others reportedlower profits.
Againsf that backdrop, Alpha Broadcasting may have the deepesyt pockets in radioright now, said B. Eric a 40-year radio veteran and owner of traddepublication RadioInk. That Alpha Broadcastinfg is not burdened by debt givex it an advantage over the majortradio companies, said Al journalism professor and director of the University of Oregon’sd George S. Turnbull Center in Portland. The sale of the Portland radio stations still must received Federal CommunicationsCommission approval, a process likely to extend into the Until then, both stations remain under the controo of , owned by Paul Allen, Microsoft co-founder and Portland Trail Blazers owner.
Both yielded profitd or ran at break-even under Allen’sa ownership, said broker Ferber. Wilson plans to improve profitability at the stations without significant cost he said. “You can’t cost cut your way into succeszin radio,” he said. “We have to put money back into the promote it, advertise our product.” The geographic reacgh of each station gives Alphaz Broadcasting advertising opportunities that Rose City Radio didn’tf pursue, Wilson said. KXL, a 50,000-watt news and talk radip station, can be heard from the Oregon coast and considerablyh south of themetro area.
Sports-orientex KXTC, “The Game,” likewise broadcasts far acroses the state andinto Washington. Wilsojn plans to hold more events linked to each by bringingin speakers, hosting sports shows and selling tickets. Past historyy suggests that Wilson will invest in more toolsfor on-airr staff and will add new servicea for advertisers, said Rhoads, the industry By spending more duringg an industry slump, Wilson accepts that he may sacrifice alreadgy thin profit margins. “We are preparexd to ride this bad time, if we have to, for two or three years,” he said.