• by David Goetzl  @dgoetzl, March 16, 2011

A sale of Freedom Communications' stations could serve as a measuring stick for whether the M&A market for TV stations has moved past the recession to its previous heat. Freedom, which emerged from bankruptcy last year, has a small portfolio of network affiliates in small-to-midsize markets, including the CBS stations in West Palm Beach and Albany.  

Freedom is holding an auction for its assets, which also include a slew of newspaper properties. The Wall Street Journal estimates the company's eight affiliates might fetch $400 million, eight times EBITDA. Freedom has a slew of newspaper assets as well.

"It's difficult to handicap these things, but it sounds like [Freedom is] a pretty robust process and money's available again at reasonable rates. I think that will be an important benchmark for the television broadcast industry," said LIN Media CEO Vincent Sadusky on an earnings call.

Sadusky did say that LIN will be "opportunistic" with regard to swapping assets with acquisition opportunities, adding that "we would look at doing some things the other way potentially as well" if values are healthy.

LIN is much larger than Freedom, with 32 network affiliates, including a CBS-MyNetworkTV duopoly in Indianapolis, the 25th-largest market.

In the fourth quarter of 2010, net revenue was up 24% to $125.1 million due to political dollars. Operating income jumped 50% to $44.2 million.

The company has emphasized expanding its local programming, debuting lifestyle shows last year in Indianapolis, Norfolk, Springfield, Mobile and Albuquerque. LIN has said the shows allow for product placement and other non-traditional advertising revenues.