Radio stocks overall fell an average of 5.91% on Monday according to our data.
Patrick Communications Partner Larry Patrick tells RBR+TVBR because of the correction, the market “may still be taking back gains we’ve made over the past five years,” however the situation makes lenders nervous.
“If you’re a lender, maybe you don’t stretch,” meaning if you’re lending at 3 and a half times multiple and the parties trying to make the broadcast deal happen want you to go to four or more “maybe you don’t,” he said in an interview.
The stock drop is making some deal-makers skittish, Patrick says. This kind of correction scares some advertisers, who might, “unfortunately pull back on spending,” he tells RBR+TVBR.
Eddie Esserman of Media Services Group characterizes what we’re seeing with broadcast stocks “as a sort of ‘double down’ gravitational pull, first in the broadcast sector itself, and then the market wide ebb flow.”
He dubs it “the China syndrome.”
