Pacific Radio Station Pulled From Market Due to Disappointing Offers
Posted on: Saturday, 25 March 2006, 15:00 CST
By Ian Hill, The Record, Stockton, Calif.
Mar. 25--STOCKTON - The proposed sale of University of the Pacific's 59-year-old noncommercial radio station has been placed on hold for at least a year because initial offers for the station were financially disappointing, Pacific officials said Friday.
In November, Pacific administrators announced the university was selling KUOP to help fund a $20 million biological sciences center and a $30 million student center.
University spokesman Joe Brennan declined to give details about potential buyers or their offers, but he noted that higher bids had been expected because of the potential of Stockton's radio market.
Kagan Research, a Monterey-based firm focusing on media, technology and advertising, recently projected that the market will enjoy the sixth-highest growth rate in the country through 2010 when it comes to available advertising revenue.
The university hopes buyers will realize the station's potential over the next year and be willing to pay more when it goes on sale a second time, Brennan said.
But radio industry analysts said Stockton's problem is its present, not its future.
The Stockton radio market ranks 80th out of 297 in the country. But it ranks 190th when it comes to collecting advertising revenue.
That can cause potential KUOP buyers to worry about the local economy and the station'sability to receive grants and underwriting from businesses, which it needs to operate, analysts said.
"If you have a strong, local regional economy there, with a lot of business, there's potential," said Mark Fratrik, the vice president of BIA Financial Network, a consulting company for the media and communications industry.
Stockton stations also compete for advertising dollars with broadcasters in Sacramento and San Francisco, which can reach listeners here as well as in their larger home city, analysts said.
"Most of the ad money will go to the Bay Area and the capital city," said Adam Jacobson, the management, marketing and sales editor for the trade publication Radio and Records.
Contact reporter Ian Hill at (209) 943-8571 or ihill@recordnet.com
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Copyright (c) 2006, The Record, Stockton, Calif.
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Source: The Record
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