On September 30, the FCC voted to begin the long-delayed 2022 Quadrennial Review of the nation’s media ownership rules. “Steps to accelerate the transition” to NEXTGEN TV were on track for an affirmative vote, pending the status of an October Open Meeting at the FCC that could have been curtailed by the federal government’s shutdown.
All signs point to a thaw in the Commission’s local ownership rules, and to an acceleration of ATSC 3.0 adoption by TV station owners. Has all this activity generated excitement among the brokerage community? Absolutely. “The most important headline from a broker’s perspective really is the potential relaxation of the radio ownership rules,” says Greg Guy, the founder and managing partner of media brokerage firm Tideline Partners.
“There’s been a lot of discussion about this over the past several years, and that relaxation of those rules would be very helpful and would drive a significant amount of transactions in what continues to be a fairly slow market for radio transactions.”
Guy’s comments aren’t unique among those in radio industry’s C-Suite, or perhaps that different from the NAB’s senior leadership. However, as a broker, opening up the possibility for what many see as the lone viable buyer — a crosstown radio station owner looking to grow — is something that could make the market a tad more competitive. And, it could bring relief to owners that have been looking to exit the business but have not found the right partner to work with to make that happen in the most financially beneficial way.
Every day, a radio station transfer of control filing appears in the FCC’s LMS, ready for regulatory approval. It’s not exactly a dreary marketplace, when it comes to deal volume. But valuations have been, in some recent cases, shockingly low. Non-secular buyers continue to drive many of the deals. Is it deregulation that will create renewed interest in Radio, or is there something more?
Guy comments, “Right now what we’re seeing is a marketplace that’s actually accelerating for good assets and starting to pick up. The market for stations isn’t tremendously deep, but there are good buyers with capital and resources rolling up groups and being inquisitive in the commercial space.”
“The most important headline from a broker’s perspective really is the potential relaxation of the radio ownership rules.” — Greg Guy
Values continue to be “somewhat depressed” based on forward-looking broadcast radio revenue projections, he notes. As such, many non-secular groups are acquiring stations because, frankly, they can. Deregulation could increase station values, making the marketplace a bit more robust, Guy believes. Until then, the sprinkling of deals and volume that started the year and began to accelerate as 2025 progressed will likely continue to experience slow growth — until the FCC makes its expected move. When that happens, Guy is expecting business to pick up dramatically.
This is an excerpt of an article appearing in the Fall 2025 RBR+TVBR magazine. It is a benefit your RBR+TVBR Membership.
