For weeks, the No. 1 topic of conversation involving the future of broadcast media has involved deregulation. With the FCC under Brendan Carr looking to “delete, delete, delete” any outdated regulatory policy, it is a matter of when — not if — ownership rules will be loosened or removed altogether.
How will this impact mergers and acquisitions? An Monday afternoon 2025 NAB Show Panel sought to tackle that question in an informal chat featuring a prominent veteran Washington, D.C., attorney; a top media broker; and BIA Advisory Services‘ Managing Director.
Frank Montero, Partner of Fletcher, Heald & Hildreth, served as the moderator, alongside Kalil & Co.‘s Lou McDermott and BIA’s Rick Ducey.
Are we poised for an event similar to what transpired after the signing by President Clinton of the Communications Act of 1996? For Ducey, waivers and caps to get deals moving forward are likely to transpire before any meaningful deregulatory deals, as it could take 12 to 18 months before any thawing of the current rules becomes a reality.
Montero then turned to McDermott. If there’s a dramatic rollback of local or audience caps, will mid-level broadcast TV groups start to get gobbled up? “I think there will be a major wave of consolidation,” he said. “It all comes down to pricing. If it is an appealing enough offer and bringing value to your investors and shareholders, it is a justifiable decision.”
Yes, bigger groups could go after smaller groups. For McDermott, TEGNA could be a buyer or a seller, and he suspects it may be more of a seller — despite signs in recent weeks that it is in growth mode and a potential acquisitor. Then, then is the widespread rumor that Jeff Warshaw, founder and CEO of Connoisseur Media, has agreed to acquire a majority of interest in (or is merging his Connoisseur with) Alpha Media, bringing radio industry consolidation of sorts.
Where will most of the consolidation occur? In markets below No. 75 in rank, McDermott believes, as deregulation will incentivize a sale. Still, he believes it is better to have a competitor in the marketplace, as it spurs activity and motivation.
WHERE ARE THE BANKERS?
Access to capital, if there is any, is a question of growing concern. With likely deregulation in a shaky economic climate, will the dollars come, Montero asked? Will valuations be affected?
McDermott noted, “Anytime bankers here deregulation, they think opportunity.” But that will be led on the TV side. Radio? “I’m not sure that is so amplified, as that ripple moved through after the Communications Act of 1996,” McDermott said.
