Radio leads October station trading

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MicroscopeAs a general rule, radio is always king in terms of total sticks moved, but the average radio deal carries a lower price tag. For a number of reasons, radio dominated trading last month.


The number that should catch your eye is total value, a category radio took easily, with $257.5M total v. $85.9M for TV.

Of course, $200M of that was attributable to one deal – the big station swap between CBS and Beasley. According to an estimate by David Schutz, $100M in value went in each direction with Beasley getting the better multiple while CBS moved to more beachfront territory and perhaps picked up greater potential. Michael Bergner brokered the deal.

The biggest television deal was Nexstar’s $68M acquisition of KASW-TV in Phoenix from Meredith/Sagamorehill.

Here is a chart of how the deal-making went down for the month week-by-week:

 

October Radio Radio/TV TV Total
1-3 $2,735,000 $0 $3,400,000 $6,135,000
6-10 $215,540,000 $0 $11,600,000 $227,140,000
13-17 $12,157,500 $0 $490,000 $12,647,500
20-24 $24,419,500 $2,900,000 $0 $27,319,500
24-31 $2,613,750 $0 $68,361,000 $70,974,750
Total $257,465,750 $2,900,000 $83,851,000 $344,216,750
Source:   RBR-TVBR, FCC

…and the totals by category. Note that although we hear about seller paper all the time these days, only a scant $1.2M was funded that way out of $344.2M in trading value.

 

Oct 2014 Deals/Values
Deal type Deals Stns Value Pnote
Radio 1 mkt 32 44 $37,665,750 $1,138,000
Radio multi-mkt 5 34 $219,800,000 $0
Radio no value 3 8 $0 $0
Radio total 40 86 $257,465,750 $1,138,000
Radio-TV multi 1 5 $2,900,000 $0
TV 1 mkt 18 27 $83,703,000 $50,000
TV multi mkt 2 33 $148,000 $0
TV no value 1 1 $0 $0
TV total 21 61 $83,851,000 $50,000
Total 21 61 $344,216,750 $1,188,000
Source:   RBR-TVBR, FCC

FMs accounted for the bulk of the trading with 67 out of a total 152 stations moved. The next highest category was LPTV CPs, all of which were scooped up by DTV America at $4K and occasionally $5K a pop:

 

October AM FM TV LPTV LPT-CP Total
1-3 2 5 4 0 0 11
6-10 7 22 2 0 0 31
13-17 5 17 0 4 0 26
20-24 6 18 0 1 0 25
27-31 3 5 4 0 47 59
Total 23 67 10 5 47 152
Source:   RBR-TVBR, FCC

There were 90 radio stations compared to 62 TV stations sold, and again, the bulk on the TV side came from DTV America’s acquisition of multiple LPTV CPs. The action was centered by far on markets 100 or smaller; there was almost no activity in unrated territory.

 

Oct 2014 Trading by Station Type/Market Size
Station 1-50 51-100 101-smlr Out Total
AM 10 2 6 5 23
FM 22 10 22 13 67
Rad total 32 12 28 18 90
TV 4 0 6 0 10
LPTV 3 1 1 0 5
LPTV CP 0 0 47 0 47
TV total 7 1 54 0 62
Total 39 13 82 18 152
Source: FCC,   RBR-TVBR