Portada’s research team sheds some light on the current valuation of different media types:
|
Media Type
|
Valuation 2006 (EBITDA Multiple)
|
Valuation Now
(EBITDA Multiple)
|
Comment
|
|
Social Networking Sites
|
NA
|
2-3 times sales
|
Despite a lot of buzz, the advertising revenue model of social networking sites has yet to be proven, also in the Hispanic market.
|
|
Online Advertising Networks
|
|
6-12 times revenues
|
Due to the high growth of the sector multiples are very high. In the Hispanic market they will tend to be higher (due to higher growth), but investments are also more risky (market is less mature), which weighs down on valuation.
|
|
Radio Stations
|
NA
|
1.5-2.5 sales
|
Radio advertising market has been relatively stagnant.
|
|
Metropolitan Dailies
|
11-14
|
5-8
|
Large metro dailies and publicly-traded newspaper groups have lost up to 75% of their value. Very competed Markets. Losing advertising revenues to online pure plays.
|
|
Small Dailies
|
Double Digits
|
7-10
|
Smaller markets, Strong local content franchise. Relatively protected from competition.
|
|
Large Weeklies
|
NA
|
5-8
|
Tend to be in large market which are very competitive.
|
|
Community Newspapers
|
6-9
|
4-7
|
Strong franchise in their communities has maintained valuation relatively stable.
|
|
Alternative Weeklies
|
6-9
|
4-7
|
Tend to have strong websites and good demographics.
|
|
Other Free Newspapers
|
6-9
|
NA
|
E.g. Commuter newspapers.
|
|
Hispanic Newspapers
|
Likely similar to Community Newspapers
|
Likely similar to Community Newspapers
|
Their valuation will range from the multiples of small dailies to Community Newspapers. Likely to have a premium do to be exposed to a growing Market.
|
|
Small Weeklies and Shoppers
|
NA
|
4-6
|
Similar to Community Newspapers
|
Source: Cribb & Greene & Portada
Related Articles:
May 19, 2008 A Newspaper Broker Provides Advice to Hispanic Publishers
December 17, 2007: A Silicon Valley Venture Capitalist looks into Hispanic Media
February 5, 2007: “We are open to acquire Spanish-language Community Newspapers”
September 1, 2005: Wanted Newspaper Properties in Second and Third Tier Markets