Radio Sales Volume Slid 10% In 2024, But Washington Changes Could Jumpstart Deal-Market. | Story

The number of radio sales further declined last year, with not only fewer stations trading hands but the value of the overall sales shrinking from a year earlier. BIA says 390 full-power radio stations were sold during 2024 for a combined value of $198 million. That is 10% fewer station sales than what were tallied in 2023, and BIA points out the total dollar figure compares to $1.1 billion in sales that were announced in 2019.

The television deal market was even slower. BIA says 19 Class A television stations were sold for $60.6 million last year, compared to 25 stations sold in 2023 for a combined $319 million. The drop is even more sizable when compared to 2021 when TV sales volume exceeded $4.4 billion.

The lack of merger and acquisition activity in the broadcasting industry last year can be attributed to several factors, according to BIA. Lauren Ross, VP of Media Valuations, and Geoff Price, VP of Financial Consulting, say a “valuation gap” exists between buyers and sellers, making it “challenging” to agree on terms, and some buyers have faced difficulties securing capital.

“The Democratic-led FCC quashed and slow-walked some TV deals and didn’t act to loosen restrictions on local radio ownership (via the subcaps) or local TV ownership (via the top-four prohibition and the two-to-a-market rule) in the face of changing industry and competitive conditions,” they write in a review.

The new year will bring changes at the Federal Communications Commission that could jumpstart efforts to allow local broadcast companies to own more stations. Ross and Nicole Ovadia, VP of Forecasting and Analysis at BIA, said in a blog post that there is “renewed hope” that a Republican-controlled FCC will speed up the process of granting pending deals and relax ownership regulations. If that happens, they say it would infuse life into the broadcast deal market.

“We believe conditions are ripe for strategic deals and swaps in both TV and radio,” Ovadia and Ross predict. They also note that some media companies will likely look for “horizontal merger” opportunities as media companies are increasingly merging traditional and digital platforms to create a one-stop shop for advertising.

Another wildcard cited by BIA is whether capital markets will become more accessible to the broadcasting industry in the coming years. Ovadia and Ross think the “timing is favorable” given the change in leadership at the FCC, the new Congress, and improving market conditions.

“With new leadership in Washington and a positive economic outlook, numerous deals and mergers could occur in the coming months and years,” they predict, saying broadcasters themselves are also signaling taking expansion steps. “Media companies are eager to grow and adapt, and we are already observing signs of heightened activity in acquisitions and strategic partnerships,” they write.

Station owners will need to overcome any doubts that were planted last year when, excluding political, local radio, and TV advertising, revenue declined from 2023 due to a lack of organic growth. In general, BIA says local businesses tightened their ad budgets in 2024. But Ovadia and Ross believe the “wait and see” pattern by business during the election year has given way to shifting perceptions, with a belief that Republicans controlling Washington policies will be more beneficial for businesses.