The Prime Media Group Limited (ASX: PRT) share price has just hit a 52-week high of 40 cents, and is now up more than 22% over the past month.
As a regional television broadcaster affiliated with Seven West Media Ltd (ASX: SWM), Prime carries the Channel 7 programming into regional areas on the East Coast of Australia, as well as the Ten Network Holdings Limited (ASX: TEN) into regional Western Australia.
With expectations that existing media rules will be relaxed fairly soon, Prime Media is a prime (excuse the pun) takeover target by one of the metropolitan networks like Seven and Ten.
That’s the most likely reason why the share price has soared so much. Additionally, media companies are expected to see their licence fees slashed, which is obviously a positive for their earnings.
Peer Southern Cross Media Group Ltd (ASX: SXL) hasn’t enjoyed the same sort of rise as Prime Media, up just 8.9% over the past month, although the company has substantial commercial radio assets as well as regional television broadcasting.
At the current price of 40 cents, Prime boasts a trailing, fully franked dividend yield of more than 9.5%, which may also make it very attractive to investors.