Journal Communications (JRN) should trade at a higher multiple based on recent industry deal comps and a shift from publishing to broadcasting.
JRN is a diversified media company that operates 20 publications (including the flagship Milwaukee Journal Sentinel), 35 radio stations, 15 television stations and provides commercial printing services.
The broadcasting industry (including JRN) rose significantly YTD due to increased M&A activity and improving operating performance driven by higher advertising and retransmission fees.
However JRN trades several EBITDA turns lower than recent deal multiples.
- In April 2013, Sinclair Broadcast Group (SBGI) acquired Fisher Communications for $373.3 million or 12.4x EBITDA.
- In June 2013, Gannett (GCI) acquired Belo for $2.2