How do you buy a radio station?

Typically, you can buy a radio station using one of two methods: purchasing the station's assets or purchasing the station's stock. Each sale could have different tax consequences, depending on the circumstances. You should discuss tax implications with an accountant.

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Checklist Purchasing a Broadcast Station

Pennsylvania Checklist Purchasing a Broadcast Station

Name: Pennsylvania Checklist Purchasing a Broadcast Station
Brand: US Legal Forms
Rating: 4.58 (309 reviews)

Category:

Corporations - Due Diligence

State:

Multi-State

Control #:

US-DD0718

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Instant download

Description

This checklist provides a general idea of the documents and information that will be necessary for a due diligence investigation when purchasing a broadcast station.

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Many stations get on the air for under $15,000 and can stay on the air for less than $1,000 per month. The main start-up expenses for a radio station are engineering fees, studio equipment for producing radio shows, and transmitting equipment for sending your signals out to the world.

Here's what you will learn about: Broadcasting Software: Types of software you can use to broadcast live that map to equipment. Microphones: A range of different mics, from entry-level to professional. Processors: Microphone processors for amplification and equalisation to improve audio.

Both generally cost around $3,000 and $3,500, respectively. Overall, internet radio stations often have the lowest cost, whereas you can launch a low power FM (LPFM) radio station for under $15,000 upfront. Month-to-month, you may be able to swing by with just under $1,000 of expenses.

Typically, you can buy a radio station using one of two methods: purchasing the station's assets or purchasing the station's stock. Each sale could have different tax consequences, depending on the circumstances. You should discuss tax implications with an accountant.

If you are unsure on how to get started and you do not have a techie background then there is no need to worry. Creating your own radio station is pretty easy. Radio.co has streamlined the process of getting up and running in minutes. This means that you can broadcast without having to know what everything does.

The most important equipment you'll need includes a microphone, headphones and playback devices. You'll have to pay for engineering fees and transmitting equipment to broadcast signals to your target audience. All the gear also needs to be licensed and approved for the country you're operating in.

How much profit can a radio station make? The exact profit of your radio station will obviously depend on factors ranging from audience size to programming cost to the amount of advertisers. However, the most popular local radio stations in the country are able to make over $60 million in ad revenue each year.

In order to legally broadcast on FM frequency bands you have to obtain a license from the FCC. There are two types FM radio licenses: LPFM or Low Power FM (local) - These stations have a limited range and are only available to non-profit organizations.

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Pennsylvania Checklist Purchasing a Broadcast Station

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