What’s the Deal? That’s a question we ask in the just-released RBR+TVBR Fall 2021 Special Report. The broadcast deal flow sank to a decade-long low in 2020, although TV M&A activity is strong. The trend seems to be cemented for 2021, unless a surprise mega-transaction for Radio emerges in Q4.
Is deregulation the deal ignitor needed for radio? Are over-leveraged, revenue-challenged media properties particularly vulnerable, and acquisition targets from cash-rich enterprises? The conversation is poised to continue at a Forecast 2022 session that’s worthy of every broadcast leader’s presence — and perhaps a financier or broker, too.
An esteemed panel of investment specialists will take a hard look at the status of 2021 and the future of 2022 for broadcast investments in this “fact-based, tire kicking” session.
With Guggenheim Securities Senior Advisor Drew Marcus as the session moderator, the transactions outlook will take center stage as Wells Fargo Securities Managing Director and Senior Equity Media/Cable Analyst Steven Cahall participates in a discussion alongside Noble Capital Markets Managing Director/TMT Christopher Ensley and veteran media broker Richard A. Foreman.
The morning session on November 16 at Forecast 2022 could see Foreman elaborate on commentary shared to readers in the Fall 2021 RBR+TVBR Special Report.
Looking at the deal landscape, Foreman believes the radio industry has really been in a funk when it comes to transactions. “That’s created by a few buried issues,” he said. “You’re dealing with a technology today that is over 100 years of age that has withstood the hands of time greatly, but it is wearing. And, there are tremendous competitive products out there that really compete against it.”
Thanks to these new digitally delivered audio options, combined with the pandemic, radio has had what Foreman called “tremendous sluggishness in revenue.”
When Foreman looks at the television deal-making landscape, he expresses confidence in the fact that there are buyers — including the mega groups and Byron Allen-led Allen Media Group. The key problem? “There is no inventory,” he said. “That’s it. Period. And the prices being paid for television are eight to nine times trailing cash flow. But, you can’t find anything.”
For more, be sure to be present November 16 at Forecast 22 in New York.
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