Could Subcap Quash Kill AM Stick Value?


With Valentine’s Day upon us, there’s a new love for media ownership being seen as the FCC’s Spectrum Auction chugs to its conclusion. There have also been kudos of new FCC Chairman Ajit Pai from all sides of the broadcast media industry, even as editorials appearing Saturday (2/11) in The New York Times and The Washington Post panned Pai over his perceived view of net neutrality elimination and lifeline regulations, respectively.

Eddie Esserman

For deal makers such as Eddie Esserman, the manager of Media Services Group‘s St. Simons Island, Georgia office, “It’s getting better.” He believes the climate for transactions has warmed considerably, with smaller radio deals coming to fruition as the TV industry gears up for anticipated deals.

Is stick value still a topic of discussion among brokers and potential buyers of radio stations?

Yes, it is, Esserman says.

In fact, it is of such critical concern for another broker that he’s worried. The root cause of his concerns? A possible removal of local ownership limit subcaps.

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