Radio has turned the corner

Radio revenues are reported up two months in a row in both New York and Los Angeles.  The broadcasters I am talking with are, for the most part, telling the same story.  The radio business is improving.

The overhang of workouts and bankruptcy deals has been absorbed into the market.  The depressed pricing inherent in these types of transactions has pretty much run its course.  Balance Sheets today are much healthier than those from five or six years ago.

Bottom line:  Radio has turned the corner.

While multiples are still mostly between 6x and 7x, look for fewer deals in the 5s and more pushing 8x.  The bias is now clearly to the upside.

If you would like to confidentially discuss station pricing and opportunities, the Media Services Group suite will once again be at the Encore beginning on Sunday.  Please get in touch if you would like to get together.

George
Media Services Group