BIA/Kelsey: 2011 Radio Station Sales Outlook
April 8, 2011 at 6:31 AM (PT)
BIA/KELSEY's MARK FRATRIK has posted a blog on the top radio station sales of 2010.
"After examining the totals for 2010 radio station sales, one could become depressed," writes FRATRICK. "Like 2009, the total amount spent on acquisitions hovered around $400 million, even with 2010 considered to be a year of some economic recovery. However, the final tally shows there was no real increase in the value of radio station sales even though a slightly higher number of stations sold."
So, what is BIA/KELSEY's outlook for the rest of 2011? Any positive signs? Here are the highlights:
* Outside of 2006, the year CLEAR CHANNEL announced its privatization, the yearly values of radio station sales hovered around the $2-5 billion range.
* The most recent year's disappointing level of radio station sales, even in the face of a recovering national economy, can largely be explained by the lack of available financing.
* In the first quarter of 2011, the tide seemed to have turned. Economic activity in general has improved, especially with the monthly employment results. Also, recent announcements of radio station acquisitions by HUBBARD BROADCASTING (of 17 BONNEVILLE stations) and CUMULUS BROADCASTING (of the entire radio operations of CITADEL) has boosted the yearly total of announced radio station sales to 483 stations for $3.7 billion.
Concludes FRATRICK, "While it is still very difficult to secure enough debt financing for many medium and small-market radio deals, the attitude towards radio station acquisitions is slowly turning to the positive."
See the full blog here.