Good buyer Interest Expected for McGraw-Hill TV Stations

dkreichen1968

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From The Article:
Calling the McGraw-Hill Broadcasting stations now up for sale a “well managed group,” media investment banker Michael Alcamo tells RBR-TVBR he expects the properties to command a strong multiple in today’s market. And he expects to see quite a few would-be buyers bidding for individual stations, rather than the entire group.

McGraw-Hill is selling while the stations are doing well. The group was the top performer among publicly traded TV companies in Q1, according to a recent analysis by M.C. Alcamo & Co. Revenues for the quarter were up 10.2% -- the most of any of the companies tracked by the investment banking firm and well ahead of the 1.2% average.

But since TV is such a tiny part of McGraw-Hill, the company doesn’t disclose the group’s profits, just revenues. So we know that full year revenues for 2010 were $96 million, up 18.3%. So, pick your cash flow margin and you can see a price approaching $400 million. McGraw-Hill was reported to have paid $50 million for the four stations in 1972 when they were purchased from Time-Life. Other than adding some LPTVs in its markets, McGraw-Hill never expanded in television...

...“It’s a very well managed group and I think the group will see strong interest, either individually or as a whole,” Alcamo said.
Read More: Good buyer interest expected for McGraw-Hill TV stations - Radio & Television Business Report
 

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