Q3 broadcast M&A market picks up pace in spite of COVID-19 pandemic

Rhea-AI Summary

In Q3 2020, U.S. broadcast station M&A volume surged to $534.7 million, a significant increase from $90.3 million in Q2, attributed to COVID-19 recovery, according to Kagan, part of S&P Global Market Intelligence. The largest transaction was E.W. Scripps Co.'s acquisition of ION Media Holdings Inc. for $338.0 million. Other notable deals included Nexstar’s option for WPIX-DT at $75 million and TEGENA’s $19 million purchase of KMPX-DT. Overall, market activity rebounded strongly, with 63% of the quarter's total coming from the ION deal.

Positive

• Q3 2020 M&A volume reached $534.7 million, a significant rebound from $90.3 million in Q2.
• E.W. Scripps Co.'s acquisition of ION Media at $338 million is a key driver of the M&A activity.
• The number of transactions doubled compared to Q2, indicating increased market confidence.

Negative

• None.

NEW YORK, Oct. 30, 2020 /PRNewswire/ -- U.S. broadcast station mergers and acquisitions (M&A) volume reached a total of $534.7 million in the third quarter of 2020 as tracked by Kagan, a media research group within S&P Global Market Intelligence. This level of activity constitutes a substantial rebound from $90.3 million in the second quarter, an all-time low attributable to the COVID-19 pandemic.

The largest share of the deal volume came from the TV station part of E.W. Scripps Co.'s acquisition of ION Media Holdings Inc., announced Sept. 24. At an 8.7x forward seller's multiple, ION's 71 TV stations are worth $338.0 million.

The second-largest TV deal was a purchase option for New York's WPIX-DT. In July, Nexstar Media Group Inc. transferred that option to its partner Mission Broadcasting Inc., which exercised the option for $75 million plus accrued interest.

In August, SJL Broadcast Management Corp. announced the sale of three Hawaiian TV stations to Entertainment Studios Inc. for $30.0 million.

In the quarter's largest deal involving a single TV station, TEGNA Inc. in September announced the purchase of Estrella Media Inc.'s KMPX-DT in the Dallas-Ft. Worth market for $19.0 million.

The top radio deal of the quarter was the announced $8.5 million sale of New York AM station WWRL, coming with an FM translator, from NJ Broadcasting LLC to iHeartMedia Inc.

The second- and third-largest radio deals of the quarter both took place in the non-commercial realm, with Educational Media Foundation Inc. the buyer in both deals. In July, Educational Media Foundation announced the $3.4 million purchase of nine FM stations from entities owned by George Flinn Jr. In September, in the largest single-station deal of the quarter, CRISTA Ministries announced the sale of FM station KFMK in the Austin, Texas, market for $6.0 million or $2.67 per pop.

63% of the quarter's deal volume came from the top deal, Scripps' acquisition of ION. Still, the other 123 transactions in the third quarter added $196.7 million to the total. That total amounts to more than twice the total second-quarter volume.

About S&P Global Market Intelligence

At S&P Global Market Intelligence, we understand the importance of accurate, deep and insightful information. We integrate financial and industry data, research and news into tools that help track performance, generate alpha, identify investment ideas, perform valuations and assess credit risk. Investment professionals, government agencies, corporations and universities around the world use this essential intelligence to make business and financial decisions with conviction.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI), the world's foremost provider of credit ratings, benchmarks and analytics in the global capital and commodity markets, offering ESG solutions, deep data and insights on critical business factors. S&P Global has been providing essential intelligence that unlocks opportunity, fosters growth and accelerates progress for more than 160 years. For more information, visit www.spglobal.com/marketintelligence.

Media Contact
Amanda Oey
S&P Global Market Intelligence
Amanda.oey@spglobal.com 
(212) 438-1904

View original content to download multimedia:http://www.prnewswire.com/news-releases/q3-broadcast-ma-market-picks-up-pace-in-spite-of-covid-19-pandemic-301163535.html

SOURCE S&P Global Market Intelligence

FAQ

What was the total M&A volume for U.S. broadcast stations in Q3 2020?

The total M&A volume for U.S. broadcast stations in Q3 2020 was $534.7 million.

What major acquisition occurred in the broadcast station sector in Q3 2020?

E.W. Scripps Co. acquired ION Media Holdings Inc. for $338 million.

How much did Nexstar Media Group pay for WPIX-DT?

Nexstar Media Group transferred an option for WPIX-DT to Mission Broadcasting Inc. for $75 million.

What was the percentage increase of broadcast M&A volume from Q2 to Q3 2020?

Broadcast M&A volume increased significantly from $90.3 million in Q2 to $534.7 million in Q3.

What is the significance of the ION Media acquisition for Q3 M&A activity?

The acquisition of ION Media by Scripps accounted for 63% of the total M&A volume in Q3 2020.