Those who bought their radio stations before 1995 or so we're able to sell them for incredible profit after the telecom 96 legislation and these big conglomerates we're forming to own clusters of stations, in some markets a Max of 8 I believe was possible now, when before you could only have 1 Fm and 1 am each market. I believe pre 96, in the 90s they did up it to 2 Fms, but after 96 a station like Z100 that was bought for 8 million in 1983, was now being sold for 150 million or more!
True, though no one who bought radio in the 70's or most, if not all, of the 80's had any idea that was going to happen. Plus, those who bought then had to find a way to survive that long to cash out. Radio had more than its fair share of bankruptcies in the 80's and early 90's. Even Jacor filed bankruptcy in either 1990 or 91. That was how Zell got his private equity money into the company.
The old money people basically priced out any regular people from buying stations. They can run stupid amounts of debt, throw up their hands, then start it all over again. Prince, lather, repeat. Regular people obviously can't do that.
Keep in mind, also, that, when calculating money, you have to bring it to the same point in time to determine how much people are actually spending. A dollar today is almost certainly worth more than it will be worth a year from now. In 1977, KBEQ in Kansas City fetched the record price for a radio station at $7 million. That someone could get a successful large market radio station for a price like that seems almost eye popping today, but that $7 million would be just under $34.5 million in today's dollars. I doubt the same station would fetch that much now. In 2000 dollars, that $7 million was about $20 million. Yes, the prices went up substantially after the Telecommunications Act passed in 1996, but they might not have gone up as dramatically as it looks at first glance. KBEQ's record setting $7 million price tag, by the way, only lasted a few months if I remember correctly.
Today, if you want to buy a radio station, you can probably get one for the price of a nice house in the area surrounding the station. Granted, you're not going to buy KIIS in Los Angeles for a price like that, but there are plenty of stations on the market. Private equity no longer sees radio as a growth medium. So, you don't have nearly as much competition for those smaller market stations.