BIAfn Report: $2.8B In Station Sales For 2005
January 12, 2006 at 1:43 PM (PT)
BIA FINANCIAL NETWORK reports that radio station sales transactions hit $2.8 billion in 2005, a slight increase over 2003 and 2004 totals and driven by the sale of SUSQUEHANNA's radio assets for $1.2 billion.
Stations in unrated markets are a larger percentage of the total sold than in the past, indicating that buyers are looking to smaller markets for value.
"The steep drop in the value of the stations that were sold is troublesome and there does not appear to be any specific reason to believe it will change in the next few years,” BIAfn VP MARK FRATRIK said in a release. "The SUSQUEHANNA sale artificially boosted the total value for the year. Taking this into consideration, for 2006 and beyond, concern continues on the ability of the radio industry to generate strong revenue growth consistently from year-to-year. Confronted with new competition such as satellite radio and iPods in the audio marketplace, radio is being challenged from all sides to demonstrate a healthy and strong future. As such, there is great apprehension on acquiring stations and investing in this industry."