Do you have an idea of how the landscape looks if deregulation plays out? Downside protection seems pretty decent from what you wrote, wondering how the upside looks like.
I still need to unpack the FCC / deregulation scenario for broadcasters..
My one concern with that path is the added leverage M&A comes with... I can't imagine these companies are eager to use equity at 5x FCF or less. Maybe NXST takes their "relatively clean" balance sheet and merge with a less clean balance sheet? I could also see industry players pulling back on share repurchases to stockpile cash/liquidity in advance of potential M&A.
Do you have an idea of how the landscape looks if deregulation plays out? Downside protection seems pretty decent from what you wrote, wondering how the upside looks like.
I still need to unpack the FCC / deregulation scenario for broadcasters..
My one concern with that path is the added leverage M&A comes with... I can't imagine these companies are eager to use equity at 5x FCF or less. Maybe NXST takes their "relatively clean" balance sheet and merge with a less clean balance sheet? I could also see industry players pulling back on share repurchases to stockpile cash/liquidity in advance of potential M&A.
Still some work to do here!
Makes sense! Thanks.
"Let’s assume the next 5 years operate at $850bn avg. FCF..." It should mean 850 million, shouldn't it? Great post regardless, thanks a lot!
good catch... fixed!