The number of TV stations sold rose in 2017, but the value of those deals fell, according to a new report from BIA/Kelsey.
A total of 107 TV stations were sold in 2017, compared with 97 the prior year. Nine of those station deals came in December.
The value of the TV station deals was $4.68 billion, down from $5.28 billion in 2016, BIA/Kelsey said.
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For 2018, BIA/Kelsey noted that the Federal Communications Commission relaxed regulations regarding local ownership of local TV stations and looser rules on television-radio-newspaper cross-ownership.
“While there is some question as to whether some or all of these new regulations will be challenged in the courts, there is some optimism that this relaxation will lead to an increase in station trading activity,” BIA/Kelsey said.
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The tax bill passed by Congress in December should increase the value of broadcast properties.
“We have already seen some increases in the values of publicly traded broadcast companies while the negotiations and passing of this legislation were occurring,” BIA/Kelsey said. “Of course, it will take some time in the marketplace for these increased values to lead to higher prices for radio and television stations.”
Other factors affecting station value include a strengthening economy and a climbing stock market.