Friday, April 29, 2011

LinkedIn groups for broadcasters

If you're involved with the broadcasting industry and using LinkedIn (and if not, why aren't you??!!), here are some groups you might want to consider joining.

The first, Radio/TV Station Buyers, is a group for station owners and prospective buyers (and in full disclosure, I am the Admin). We have almost 600 members, including a lot of well known broadcasters. Our discussions are timely and relevant. Please consider joining us and participating regularly. It is a good resource for those of us in the business of buying, selling, and building value with radio and television stations.

The second, Future of Radio Online, is run by Jim Hooker and is an offshoot from an annual conference which Jim hosts on Hilton Head Island. This will be a great resource for contemplating radio's future. I recommend it highly.

Media Services Group

Thursday, April 28, 2011

Stephan Sloan: "There are now more streams than listeners online."

For the last three years, Jim Hooker has invited a group of broadcasters, brokers, researchers and consultants to Hilton Head Island for a discussion on the future of radio. I am pleased to have worked with Jim in putting together the group. Each year has yielded a lot of forward thinking about the radio industry.

One of my partners at Media Services Group, Stephan Sloan, has been a participant in the meetings, and this year made a presentation about streaming. He told the group that in 2007, half of all Internet listening was being done to 81 of 10,000 streams. In 2011, the data shows that half of all listening will be done to 161 streams, but there are now more streams than there are people listening to the Internet.

Stephan also addressed the relationship of retail sales to radio revenue, which he’s been tracking since 1980. In 2000, at the peak of the business, radio was doing over .6% of retail sales in revenue. In 2010 it was only .34%, and the forecast is almost flat going out to 2013.

For additional information about the conference and Stephan's remarks, click PRESS RELEASE. For a look at Stephan's presentation on video, click VIDEO.

Media Services Group

Wednesday, April 27, 2011

Hawaii: 2 FMs/1 AM for sale

My partner, Greg Merrill, is handling a court ordered sale (Chapter 7) for stations serving Hilo/Kona (Big Island), Hawaii. Offers are due June 1, 2011.

If you're interested, contact Greg at 435-753-8090 or

United States Bankruptcy Court
District of Idaho

Media Services Group

Tuesday, April 26, 2011

Report from the NAB Show in Las Vegas

Now that a week and a half have passed since returning from the NAB Show in Las Vegas (and I have caught up returning my phone calls and answering email), I would like to share some thoughts on this year’s convention.

We were back at the Encore for the second year (after a long run at the Bellagio). Attendance for the show was reported up over last year; the traffic in our suite would tend to bear that out. All of our guys were busy with meetings on Monday and Tuesday; some stayed over for meetings on Wednesday as well.

The “tone” was noticeably improved over the last couple of years. We all continue to lament the absence of senior debt, but there is are active crowds of both buyers and sellers. And in spite of the lack of bank financing, some deals are actually getting done (also a marked improvement over prior years).

Station operations are generally continuing their upward trend in performance. Most operators had a pretty good year last year and expect even better results in 2011. As you might expect, there was a lot of chatter about the Citadel/Cumulus and the Bonneville/Hubbard deals. Most believe that the valuation of these two deals sets the high water mark for BCF multiples. We agree. Our company opinion is that those deals traded in roughly the 8.0x to 8.5x range (or at least will be there by the closing dates). Buyers are offering 6’s and sellers are asking 8’s for the less prime inventory. The deals which are getting done appear to be in the 7’s.

Tower sales continue to be of interest. The tower trading marketplace is robust with well-financed and aggressive buyers. Tower cash flow multiples are 8x to 10x for broadcast and high teens and up for wireless.

While most of my time was spent in our suite in meetings, I did make it to Erwin Krasnow’s annual FCC Breakfast at the Las Vegas Country Club. It was well attended and a good show, as always.

Next stop, the Radio Show in Chicago in the Fall.

Media Services Group

Monday, April 25, 2011

Sale of WVMP-FM closes

Congratulations to Edward B. Walker of CityWorks Community Broadcasting in Roanoke (buyer) and Allen Shaw of Centennial Broadcasting (seller) on the completion of their deal for WVMP-FM in Roanoke (licensed to Vinton, VA). The sale price was $500,000.

WVMP programs a AAA format at 101.5 mHz. BIA reports a 60 dBu pop count of 245,854. The price works out to $2.03 per pop. I am pleased to have represented Centennial in the transaction.

Media Services Group

Monday, April 4, 2011

Clear Channel names replacement(s) for Mark Mays

The long awaited announcement from Clear Channel has arrived. Mark Mays has officially been replaced by Thomas Casey and Robert Walls. They will fill a new position called "Office of the Chief Executive Officer." Casey has been Executive Vice President and Chief Financial Officer; Walls, Executive Vice President, General Counsel, and Secretary of the Company. They will both keep their current responsibilities.

Read the article HERE.

Media Services Group