More TV Stations Trade Hands for Less Money
CHANTILLY, VA.: More TV stations traded hands through the first seven months of 2009 than last year, according to BIA Financial. A total of 48 TV stations had sold through July, compared to 25 in the same period last year. However, the valuations of the transactions is substantially lower than last year. The aggregate value of TV transactions through July was $455 million, down 36 percent from $716 million last year.
During the month of July, three TV stations sales were announced, versus seven during the same month last year. The value of the transactions was placed at $8 million versus $271 million last year.
Bankruptcies may have something to do with the disparity in values compared to last year. ION Media, Young Broadcasting, New Vision Television are among broadcasters that filed for bankruptcy this year, but all reorganized debt or were taken over by lenders.
The number of radio station transactions through July was down by just 10 from last year, to 437, but the total value of deals was down by 56 percent, from $503 million to $217 million. July itself was a bit better for radio, with the number of station sales up 23 percent to 102, and the total transaction value up 79 percent to $68 million.
-- Deborah D. McAdams
January 16, 2009: “Station Trading Drops Through the Floor”
“The outlook for the immediate future in those advertising revenues is not expected to recover. It probably will not be until the later part of 2009 that advertising revenue growth becomes positive, and even then the growth will be slow.”
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