Value of TV Firms Down A Third Since 2010
As of Jan. 31, shares of the six pure-play groups were trading at a multiple of 7.3 times trailing 12-month EBITDA, down 32% from the 10.7 times from two years earlier, according to a study by M.C. Alcamo & Co. Investors remain “cautious” despite positive signs, says Alcamo President Michael Alcamo.
Calling the McGraw-Hill Broadcasting stations now up for sale a “well managed group,” media investment banker Michael Alcamo says he expects the properties to command a strong multiple. And he expects to see quite a few would-be buyers bidding for individual stations, rather than the entire group.
TV Group Ranking Could See Shake-Up In ’11
While there was little movement in the rankings during 2010 (the top five groups remain Ion Media Networks, Univision, Trinity, CBS and Fox), that could change very soon. With an improving economy and much better bottom lines at both the stations and groups, it’s likely there will be some significant station trading this year.
