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Analysis Of Radio Station Mergers And Acquisitions - Term Papers

Analysis Of Radio Station Mergers And Acquisitions

The radio industry is seeing rapid mergers and single companies buying many radio stations at one time. The trend now is for Communication companies to own several radio stations in a single market. As a result of these proposed mergers and acquisitions, the FCC has reviewed many of the planned transactions. From November 1997 to November 1998, there were 9 proposed mergers and acquisitions, 8 pending deals, and 5 done deals from companies. The biggest transaction of this time period was the mega-merger of Chancellor Media Corp. and Capstar Broadcasting Partners. This merger creates the top radio group in the U.S. with combined revenues of $1.6 billion and 479 radio stations. ...

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local radio advertising revenue market. With these current deals, the threshold would push that to 75%. The FCC currently has no magic number for reviewing local advertising revenue.
One of the cases that the FCC is currently reviewing is Regent Communications’ acquisition of four radio stations in Redding, California. Officials have said that if this deal goes through, one company would control 64% of the local radio revenue and would also give two companies a whopping 99.6% of the market’s radio revenue. The FCC is concerned about competition and trying to help smaller radio stations stay alive. Officials want the industry to remain healthy and profitable for radio stations.
Radio stations may have a big problem competing with one another in the future with these recent mergers and acquisitions. While companies may own several stations in a single market, sales and marketing of many groupowned stations will still continue to be handled at the local level. Another ...

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Analysis Of Radio Station Mergers And Acquisitions. (2004, September 17). Retrieved November 22, 2024, from http://www.essayworld.com/essays/Analysis-Of-Radio-Station-Mergers-Acquisitions/14466

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"Analysis Of Radio Station Mergers And Acquisitions." Essayworld.com. September 17, 2004. Accessed November 22, 2024. http://www.essayworld.com/essays/Analysis-Of-Radio-Station-Mergers-Acquisitions/14466.

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PAPER DETAILS

Added: 9/17/2004 03:35:38 AM
Category: Arts
Type: Premium Paper
Words: 435
Pages: 2

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