In taking stock of what kind of year 2013 was for television and radio, BIA/Kelsey’s broadcast media transaction activity data paints a very dynamic picture for television station transactions compared to 2012, and a consistent trend for radio stations.
Nearly 300 TV stations were sold in 2013. That number of transactions is up 205% from 2012. Likewise, the total sale valuation for television stations were up - a 367% increase in 2013 from 2012 for over $8 billion.
Television station transactions exploded in 2013, because the healthy TV environment in 2012 bolstered investor confidence. Strong political advertising revenues from the previous year, retransmission consent revenues and continued historically lower interest rates were all contributing factors to this strong showing in the television station acquisition market.
Alternatively, radio transactions were at the level as the year before both in term of the number of stations sold and the total value. According to BIA/Kelsey's MEDIA Access Pro, there was a great deal of consistency and few large transactions. The largest transaction of the year were the 53 stations sold by Cumulus Media to Townsquare Media LLC in August, estimated to be $238 million.
Overall, radio’s continued position in the marketplace is encouraging existing groups to grow and some new groups to enter. BIA/Kelsey anticipates that 2014 will bring a slight increase as the economy gathers some strength.
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