Kagan Expects Quick Radio Revenue Recovery
Radio revenue should "recover quickly," boosting mergers and acquisitions in that sector, S&P's Kagan analyst Volker Moerbitz forecast. Q1 M&A in broadcasting was "largely unaffected by the current crises caused by the COVID-19 pandemic," analyst Volker Moerbitz noted Friday. "In…
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light of current events, Kagan expects a steep decline for the broadcast deal market, but also a steep recovery after the resolution." Q1 broadcast M&A was $2.64 billion, 94% attributable to Univision's buyout, Kagan said Friday: Also that quarter, Tegna got "several offers for all of its 66 TV stations." That could be a "harbinger" of "a first large deal announcement after the COVID-19 pandemic." Q1 had nine radio deals worth more than $1 million, "the fewest million-dollar radio deals" since Q2 1984. (As part of Communications Daily putting its coronavirus coverage in front of our pay wall, you can read a news bulletin about Tegna's M&A announcement here.)