In late 2023 and early 2024, some analysts were predicting an upsurge in media M&A as a result of declining interest rates and the pent-up demand following years of a slow market. A variety of factors have conspired to depress this optimism. The Federal Reserve has been slow to decrease interest rates, which handicaps debt funding across all sectors. The Federal Communications Commission has adopted a much more restrictive posture in terms of allowing consolidation in broadcasting, including not just Standard General’s proposed and now terminated $8.6 acquisition of TEGNA, but also smaller deals that might change the ownership concentration in individual markets. On top of all that, industry economic pressures continue to be intense, particularly in the migration of traditional linear media to streaming platforms and the continued fragmentation of the market.
A Blinking Yellow Light: The Outlook for Media M&A in 2024
