A Longitudinal Analysis of Mergers and Acquisitions Patterns of Radio Companies in the U.S.

This study examined the trends of M&As (mergers and acquisitions) in the radio industry from 1981 through 2002. In terms of method, the study investigated both MUS by radio firms and M&As targeting radio firms, and compared M&A frequency and M&A transaction values. The result showed that (1) although M&A activities have consistently increased, they have recently begun to decrease, (2) the loosening of ownership regulations prompted more M&A activities, and (3) the passage of the Telecommunications Act of 1996 encouraged interindustry M&As by radio firms, while the flow of investments from other industries into the radio industry was not changed by the Act.