Sales of Radio Stations Picking Up

The general level of station sales has been seen as an indicator of economic conditions (the argument is that the better the economic prospects for a market or industry, the greater the interest in entering that market, and in broadcasting that's mostly through buying stations).  Mark Fratrik of BIA/Kelsey, a consulting firm and broadcast broker, sees the stagnant sales level of the last two years ending in the first quarter of 2011, driven by a couple of large transactions (Cumulus Broadcasting's acquisition of Citadel's radio operations, and Hubbard Broadcasting's purchase of 17 stations from Bonneville).  He also suggested that 2010's relatively low sales were largely a result of a lack of available financing.  He predicts that the market will open up in 2011, providing a friendlier atmosphere for station trading and sales.

Source: "Station Transaction Market Picks Up," Radio World