2017 'Strong but Not Overwhelming' for Broadcast Deals, but 2018 Could Be Bigger, Fratrik Says
Last year was “strong but not overwhelming” for TV and radio deals, said BIA/Kelsey Chief Economist Mark Fratrik in a blog post Friday. In 2017, 107 TV stations sold for a total of $4.7 billion, 10 more stations than the…
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previous year but with a total value of $600 million less, Fratrik said, and 755 radio stations were sold in 2017 for $3.3 billion, $2.8 billion more than in 2016. That increase stems from the Entercom/CBS Radio deal, Fratrik said. For 2018, the FCC’s relaxation of ownership rules could lead to an increase “in station trading activity,” he said. The tax bill passed in 2017 is likely to lead to value increases for broadcast properties because of the reduction in corporate tax rate and changes to capital expense rules, Fratrik said. “We’ve already seen some increases in the values of publicly traded broadcast companies while the negotiations and passing of this legislation was occurring,” said Fratrik. “Of course, it will take some time in the marketplace for these increased values to lead to higher prices for radio and television stations.” The stronger economy and elevated stock prices could also lead to more deals in 2018, Fratrik said.