BIAfn: Station Sales, Interest In Deals Up In 2006
April 6, 2007 at 9:24 AM (PT)
A BIA FINANCIAL NETWORK study of radio station sales in 2006 shows the number of deals exceeding 2,000 for the first time since 1997. The growth, which saw 1,544 deals in rated markets and 562 in unrated markets, was credited "overhelmingly" to the proposed privatization of CLEAR CHANNEL. Still, unrated market station sales grew 15% among stations unconnected to the CLEAR CHANNEL deal, which BIAfn suggests shows "an interest in the purchase of small market stations as long term investments." Leading the list of groups buying radio stations in 2006 were CITADEL-ABC (24 stations, $2.7 billion), ENTERCOM, REGENT, WILKS, and GREATER MEDIA.
"Interest in radio properties is beginning to rise, mostly as strategic jockeying where owners see future opportunities and are looking to complete corporate strategies," said VP MARK FRATRIK. "The significant interest we’re seeing in the unrated markets goes back to the fallout from the early years of the Telecom Act of 1996 where owners focused mostly on the large markets and are only now beginning to see the opportunities in the smaller areas to buy stations and increase their values."