2005 Station Sales Flat

There were $2.8 billion of announced radio transactions in 2005, only slightly higher than in the previous two years, according to BIA Financial Network. The estimated $1.2 billion sale of Susquehanna’s radio properties drove the slight uptick; without that sale, the total value of radio transactions for 2005 would have been less than any of the previous four years, says the financial group.
“The steep drop in the value of the stations that were sold is troublesome and there does not appear to be any specific reason to believe it will change in the next few years,” said Mark Fratrik, vice president of BIAFN. “Confronted with new competition such as satellite radio and iPods in the audio marketplace, radio is being challenged from all sides to demonstrate a healthy and strong future. As such, there is great apprehension on acquiring stations and investing in this industry.”
From 2001-2005 the annual number of radio stations sold has been between 859 and 1,000, with the total value of each sale between $1.9 and $5.4 billion. Also, the total value of radio station sales for 2005 added to the total value of radio station sales in the four previous years accounts for 66 percent of the total in 2000 alone, BIA finds.