Radio Groups Are ‘Reassessing Core Assets,’ BIA Finds

“The announcement by CBS Radio of their intention to sell 39 stations in 10 markets is another indication of readjustments in the radio industry,” says BIA Financial Network.
The Virginia research firm noted that in the decade since passage of Telecommunications Act, there has been “significant and rapid acquisition of radio stations resulting in radio companies owning more stations than anyone would have predicted.”
Now, says BIA, CBS Radio’s divestiture of stations; the sale of radio assets by ABC; and statements by Citadel, Radio One and others that they are looking to sell certain stations “proves that radio groups are reassessing their core assets and determining where there is the greatest potential for growth and financial reward.”
The BIA analysts also expect that potential buyers most likely will not be in the markets where the stations are being sold.
“Although there are some notable exceptions, existing competitors are, for the most part, precluded from buying additional stations under the radio ownership rules as modified in June, 2003,” it found. “However, there appears to be several mid-sized and new radio groups that may have an interest to enter these markets and have access to an ample supply of equity and debt financing.”