• by Wayne Friedman , October 10, 2013

Mergers and acquisitions deal-making among TV station groups will continue in the near term -- but at a slower pace than in the previous months.

Credit rating agency Fitch Ratings says the marketplace will remain “active” through geographic expansion and growing digital, data and analytical capabilities. Moreover, deals are being driven by accessible credit markets.

Strong activity in recent months has produced some major deals, including Gannett's planned acquisition of Belo ($2.2 billion); Tribune's planned acquisition of Local TV Holdings ($2.7 billion); and Sinclair's acquisition of Fisher Communications ($373 million).

“Consolidation among television broadcasters will likely continue, albeit at a slower pace, if the FCC eliminates the ultrahigh frequency (UHF) discounting.”

Holding down some growth are big TV station groups that are nearing the limits of U.S. viewership reach -- the 39% cap, as per the Federal Communications Commission. Still, "a number of broadcasters still have room within the 39% cap and may continue to drive consolidation in the industry," adds Fitch.

Fitch says most deals will be less than $5 billion, as the vast majority of acquisition activity will likely comprise small bolt-on acquisitions.

"Stock Market" photo form Shutterstock.

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