Will this be a record-breaking year for U.S. radio station sales?
In its 2008 assessment of the industry, brokerage and valuation firm Media Services Group predicts that small- to medium-market radio properties will trade at 7 to 9 times broadcast cash flow during 2008, and 9 to 11 times cash flow for larger markets.
“We think the industry is resetting pricing, and expect the year to be record-setting in terms of station trading volume. The first half of the year will be affected by capital constraints, which we expect to loosen in the second half,” stated George Reed, managing director of MSG.
MSG predicts an “unprecedented” volume of stations will change hands this year, the most since passage of the 1996 Telecom Act.