20 Sep 2017
Live Post
Post merger of HITS-Cable TV biz, IMCL’s FY17 net loss swells to Rs 206 crore
RIL Surges 4% After Telecom Regulator Slashes Interconnect Charges
Mumbai Rains: 34 domestic flights cancelled till 12 pm today, main runway remains shut
Tata Sons buys big chunk of shares in group firms
Swine flu: 42 positive case in Mohali
HIV blood transfusion probe: High-level team gives clean chit to Regional Cancer Centre
Flipkart, Amazon in Rs100 crore ad blitz
Politicians may have helped Iqbal Kaskar net 100 crore in 3 years
Mobile bills to go down as Trai cuts call termination charges to 6 p/min

US broadcast station M&A volume nears $4.5 bn in Q2 2017

MUMBAI: The volume of broadcast-station mergers and acquisitions in the US reached $4.47 billion in the second quarter of 2017, according to estimates from Kagan, a group within S&P Global Market Intelligence.

The TV segment contributed $4.22 billion of the total, with $3.82 billion coming from just one deal.

On 8 May, Sinclair Broadcast Group Inc. announced a successful bid for Tribune Media Co. The $43.50-per-share price represents $3.94 billion in cash and equity and the assumption of approximately $2.70 billion in net debt.

As far as the broadcast assets are concerned, at a 7.5x 2017-’18 average seller’s cash flow multiple, Kagan estimates the value of Tribune’s 44 TV stations, including three stations operated through local marketing agreements (LMAs), at $3.76 billion.

The purchase also included one AM radio station and the programming of one FM station, bringing the total broadcast value of the transaction to $3.82 billion.

In addition to the mega-deal, the TV deal market registered transactions worth $403.0 million. The second-largest TV deal of the quarter again involved Sinclair, which on 21 April announced the acquisition of Bonten Media Group Inc. and its 17 full-power and five low-power TV stations, including five LMAs, for $240 million.

In the largest deal by number of licenses since 2011, Edge Spectrum Inc., acquired the licenses for 196 low-power TV stations and construction permits to meet the spectrum requirements for its planned nationwide IP broadcasting network. Edge Spectrum paid a total of $72.0 million to several subsidiaries of EICB TV LLC and to Grace Worship Center Inc.

In the third-largest full-power TV transaction, Saga Communications Inc. left the TV industry, selling its six remaining owned-and-operated stations and three LMAs to Morgan Murphy Media for $66.6 million. At the same time, Saga expanded its radio business with the third-largest radio deal of the quarter, paying $23 million to Apex Media Corp. for seven FM stations, one AM and four translators.

The top radio deal was the $82.8 million sale of hip-hop FM station KPWR-Los Angeles from Emmis Communications to Meruelo Media. The transaction was the largest single radio-station sale since 2012 and represents nearly 34% of the quarter’s $245 million radio deal total.

The second-largest radio transaction was the radio portion of Sinclair’s Tribune Media acquisition. Kagan estimates a value of $58.4 millionfor Chicago’s WGN-AM and the programming of one additional FM station.

In the first half of 2017, the broadcast deal market registered a total volume of $7.24 billion, with $4.39 billion coming from the TV sector and $2.84 billion stemming from the radio market.