The US radio industry’s mergers and acquisitions activity continued on its downward track in 2024, with the latest reporting from BIA Advisory Services. Yet with a Republican-controlled FCC on the way, that could be set to turn around – but how soon?
In 2024, a challenging economic environment, rising borrowing costs, and regulatory hurdles kept deal-making at a minimum, with radio transactions dropping from $220 million in 2023 to $198 million in 2024, down from $1.1 billion in 2019.
BIA data shows 390 radio stations were sold in 2024 to the tune of $198 million. Granted, an outlier at the end of the year greatly offsets the data – Salem’s $80 million sale of seven Contemporary Christian Music signals to Educational Media Foundation announced on December 30.
Factor that deal in and the average sale price per station in 2024 surges to $507,692 from its previous $308,094. Television sales were even less fluid, with 19 stations sold for $60.6 million.
As BIA VP of Media Valuations Lauren Ross and VP of Financial Consulting Geoff Price explain, “A valuation gap exists between buyers and sellers, making it challenging to agree on terms, and some buyers have faced difficulties securing capital. Additionally, the Democratic-led FCC quashed and slow walked some TV deals and didn’t act to loosen restrictions on local radio ownership.”
Some good news ahead? BIA appears to be of similar mind to S&P Global Market Intelligence when it comes to possibilities in 2025 and beyond. Expected Federal Reserve rate cuts in 2025 may improve access to capital, making acquisitions more financially viable. Increasing competition from digital and streaming platforms may also push broadcasters to expand through strategic mergers.
Even so, BIA still remains cautious about the pace of recovery. VP of Forecasting and Analysis Nicole Ovadia notes, “It remains uncertain whether capital markets will become more accessible to the broadcasting industry in the coming years. But there is renewed hope that a Republican-controlled FCC will speed up the process of granting pending deals and relax ownership regulations, infusing new life into the deal market. We believe conditions are ripe for strategic deals and swaps in both TV and radio.”
