Hitting the jackpot
Liu's ship really came in when, in 1998, another FCC rule change brought him a fortune. There was originally an FCC limit on the number of radio stations that could be owned by an individual or corporation. When this was lifted, it became possible for a nationwide Spanish-language network to acquire what it had long desired, a station in New York. Liu's operation fit their requirements perfectly, so they were willing to pay the astronomical price of over US$100 million, or dozens of times what he paid for it.
On the one hand to reduce taxes, and on the other out of pure interest, after getting the money for the New York station, Liu purchased 15 radio stations on the American West Coast. Last February, he sold another radio station, and purchased 13 other radio stations with this cash. Today, he and his wife are the exclusive owners of 30 stations, broadcasting in New York, Washington, Virginia, Maryland, Florida, Atlanta, Dallas, Seattle, San Jose, San Francisco, Sacramento, Los Angeles, and other cities and states. Moreover, through satellite links and alliances, Liu's Multicultural Broadcasting Corporation has created a nationwide network of minority-market radio stations, broadcasting daily in dozens of languages. He also has three Chinese language TV stations in New York.
As Liu explains: "When you buy media, you have to look at the operations multiple. You can sell a television station for about ten times operations value, and a newspaper for seven to eight times, but a radio station you can sell for 14 times the value!"
Of course a lot depends on the skill and intelligence of the individual.
As a professional himself, Liu trusts professionals. He spends up to half a million US dollars per year on legal consultation fees, and he gives considerable discretion to the general managers of each of his radio stations. Kevin Chu, general manager of Liu's three stations in LA, and West Coast vice-president for Multicultural Broadcasting, is smilingly described by his employees as "thinking more of the owner's interests than even the owner himself!" Chu, who 12 years ago entered the Cantonese station KMRB 1430AM, part of the Multicultural Broadcasting Company, says of Arthur Liu: "He is that rare item, a good boss. He's flexible, open-minded, smart, and is principled." Chu is very willing to give everything he has for a boss who puts such trust in him.
AM1300 in San Francisco is the most successful of Arthus Liu's stations, thanks to its talented staff. Sales manager Felix Kuo (right) not only handles sales, but co-hosts a popular program with Nick Kao.