Cross-Media Growth: Marquee Latest To Leverage Radio-TV Synergy.

The cross-ownership ban on television and radio combinations was struck down in a 2021 decision by the Supreme Court. There hasn’t been a flood of TV owners pouring into radio, but in recent weeks the deal market has shown for some operators the combination is an enticing multimedia move.

The latest deal comes in Medford-Klamath Falls, OR where the West Coast television operator Marquee Broadcasting has just filed a $780,000 deal to buy five full-power stations and nine FM translators from Bicoastal Media. It is a market where Marquee already owns “Fox 26” KMVU-TV and a low-power affiliate for MeTV, Telemundo and My Network TV.

“Two words describe this agreement: better together,” Marquee COO Gene Steinberg said when the deal was announced this month. “Adding the power of the Bicoastal radio stations to our television properties makes us the only triple play media company in the Rogue Valley combining television, radio and digital opportunities in the market,” he explained.

The Bicoastal Media stations include country “Q-100.3” KRWQ, KLDZ, classic hits “Kool 103.5 FM” KLDZ, adult R&B “107.5 The Beat” KIFS, news-talk KMED (106.3), and oldies “99.3 The Juke Box” KBXG as well as nine FM translators.

The translators include the Ashland, OR-licensed K225DE at 104.3 FM that simulcasts KLDZ; the Grants Pass, OR-licensed K226CY at 93.1 FM that simulcast KIFS; the Grants Pass, OR-licensed K254BS that simulcasts KRWQ; the Cave Junction, OR-licensed K254BT at 98.7 FM that simulcasts KRWQ; the Rogue River, OR-licensed K264CA that simulcasts KLDZ; the Jacksonville, OR-licensed K276FP at 103.1 FM that simulcast KMED; the Ashland, OR-licensed K288CP at 105.5 FM that simulcasts KMED; the Rogue River, OR-licensed K290AF at 105.9 FM that simulcasts KMED; and the Ashland, OR-licensed K294AS at 106.7 FM that simulcasts KMED.

With the sale, Bicoastal Media is parting with a group of stations that it has owned for the past 17 years.

“It’s exciting to consider the new opportunities that this acquisition will create for these radio and television properties,” COO Mike Wilson said.

Marquee Broadcasting will operate the radio stations under a local marketing agreement until closing. “We are excited to welcome these stations and their employees into the Marquee Broadcasting West family,” CEO Patricia Lane said. Other than its Atlanta and Boise, ID television stations, all of Marquee’s other TV holdings are beyond the top 100.

Other TV Owners Want Radio Too

The move by Marquee comes on the heels of two Fort Myers-Naples, FL television owners also looking to bulk up their radio businesses in addition to their TV operations. Fort Myers Broadcasting Company agreed to buy three radio stations from Beasley Media Group for $9 million, while Sun Broadcasting will also pay $9 million for another two FMs. Both are already in the TV and radio business in the market.

There was also Nexstar, the largest owner of TV stations in the U.S., announcing plans to expand its reach even further by acquiring rival Tegna in a $6.2 billion deal. The radio holdings include Nexstar’s talk WGN Chicago (720) and Tegna’s Columbus, OH sports combo WBNS-AM/FM (1460/97.1).

The old adage says three is a trend, but media brokers say the fact that three different television companies opted to buy more radio this month is probably not the start of a wider move by TV station ownership groups. “I think TV is trying to figure out the best combination of TV assets to acquire under the new regulatory atmosphere,” says Bob Heymann, Managing Director of Media Services Group-Chicago.

In June, the U.S. Court of Appeals struck down the FCC’s long-standing provision known as the Top-Four Prohibition. Under the rule, broadcast station owners had been prohibited from owning more than one of the top four rated full-power stations in a single market. The FCC has also begun examining whether to repeal the cap that limits a broadcaster from reaching more than 39% of the of the television audience households in the U.S.

Tideline Partners’ Managing Partner Greg Guy also believes the radio-television deal-making in recent weeks is more coincidental than an emerging pattern. He points out the Tegna deal involved radio stations that are heavily integrated into the television operations and the Columbus sports scene as an example of why television companies occasionally opt to keep radio part of the mix. 

“TV owners are focused on consolidation and duopolies right now,” Guy says. “Sometimes radio stations come with the assets, but they are usually spun off.”