It’s been a very quiet two years thanks to a world-wide pandemic. COVID-19 cornered everyone into a survival and save money mode. As we head into 2022 life returning to normal is finally a real possibility. Does that mean radio will start to see more deal activity?
We reached out to several highly respected brokers and analysts to get their thoughts on that very topic.
On November 8th, our roster of experts give us their opinion on 9 different topics regarding the radio industry, including their thoughts on whether radio’s revenue will ever see consistent yearly increases, whether radio should pay artists to play their music and what they are hearing from their clients in the trenches. You can subscribe to Radio Ink now in time to receive that issue HERE. There’s no better way to prepare yourself for 2022 than with your own subscription to Radio Ink. In December we feature our Under 30 Superstars and in January our Executive of The Year.
On November 16 at Forecast 2022 Guggenheim Securities Senior Advisor Drew Marcus is moderating a panel called Prospects for Broadcast Media as an Investment in 2022: The Real Street Talk. See our full agenda HERE. Register for Forecast HERE.
And now let’s hear from our panel of expert brokers and analysts about the 2022 deal market…
Radio Ink: Do you think we are going to see any big deals in 2022?
Larry Patrick: We do know of two big deals that are just starting but will likely not be announced or closed until 2022. These would be consolidation plays but substantial players will dominate. Companies must continue to pay down debt and gain flexibility on acquisitions from their lenders.
Drew Marcus: Probably but a lot depends on the regulatory climate.
Eddie Esserman: I do believe we’re on the edge to some big mergers and shifts in ownership thinking not seen since the mid 90’s especially with news of some ownership rule changes. The continued acquisition of stations by religious and non English broadcasters will continue I believe. Strategic acquisitions are always tempting.
Doyle Hadden: I could certainly see big deals happening in 2022 with medium/large size companies merging. Especially if ownership caps are the driving force. In our shop alone, we have 8 transactions ready to file with the FCC, but with small and detailed measure to work out, prior to moving forward but business has not gone down for our company.
Michael Bergner: 2022 will be another slow trading year for stations but strangely there may be a large deal or two just based on some current situations.
Dick Foreman: Hope so, but we’ll have to see how the recovery solidifies.
