Buyers dialing up prices for local TV stations

BUYERS DIALING UP PRICES FOR LOCAL TV STATIONS
[SOURCE: Dow Jones Newswires]
Local television has been the darling of the media sector, and an increasing number of companies are hoping to cash in on what could be the peak of the market. Irving, Texas-based Nexstar Broadcasting Group Inc. and Providence, R.I.-based Lin TV Corp. announced last month they are considering potential sales of their companies. Last week, New York-based News Corp. said it plans to sell nine TV stations affiliated with its Fox network. And Philadelphia-based insurer Lincoln National Corp. is considering options for its media assets, which include three TV stations. Some believe the sudden flood of nearly 100 TV stations on the auction block could dampen what have been sizzling sales prices in recent deals. Most industry participants, however, believe sellers will continue to reap windfalls as they rush to take advantage of favorable sentiment for the local television industry. If recent rich sales multiples continue, more sellers could jump in, as cash-fueled private-equity firms prove to be hungry acquirers during the recent local-TV binge.
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