Oh, radio isn't in such a sad state. Our little company spins off millions of dollars in cold, hard profit every year and we're just a bunch of small-town shits.
And just last week the 2011 list of top-billers was announced, and DC's WTOP showed a billing (ad revenue) increase of around 12 percent to pop up to about $64 million for good old Hubbard Broadcasting, and I'd guess that at least $30 million of that--maybe $40 million--drops directly to the bottom line.
In other words, there are still good broadcasters and lousy broadcasters in American radio, just like always. Double O, for whatever reasons, wasn't able to figure out how to succeed in Panama City, but they're not the first to screw it up... nor will they be the last.
And as far as the general pricing of radio stations today, it's not that much different from the overall real estate market. When lenders decide to start lending again, there's a good chance that the market (and prices) will rebound. Right now the banks make more money just borrowing from the fed at 1% and lending it back to the fed at 3%, so lending to anyone to buy anything is stupid. Besides, it cuts into their 4-hour lunches.