Emap Sale of Irish Stations Goes Through?

Radio Mad.

I've been advised that Emap sold its three stations here, Today FM, FM 104 and Highland Radio, yesterday. Apparently it came down to a choice between UTV and Communicorp. Anyone know which one was successful?

Radio Mad.

Communicorp has it! Separate source says Emap made its decision yesterday.

Dudess

It actually came down to Vienna Investments (Dermot Hanrahan) and Communicorp. UTV has been knocked out, apparently.

As for Communicorp having it: I'll believe it when I see it. I'd be very worried if a company that already owns NewsTalk AND 98FM AND Spin got to take over Today FM (in competition with NewsTalk) and FM104 (in competition with 98 and, it could be argued, Spin).
That would be downright Berlusconi-ish.
I can't see it happening in Ireland

/suddenly happens to spot a copy of the SIndo
Oh wait...

Radio Mad.

Today's Irish Times (www.ireland.com) confirms that Emap agrees to sell Irish assets to communicorp...


O'Brien consortium to buy radio stations for €200m

Colm Keena, Public Affairs Correspondent

Denis O'Brien's Communicorp Group is set to buy the State's largest commercial radio station, Today FM, and the leading Dublin station FM 104, in a €200 million deal.

The deal, subject to approval by the Broadcasting Commission of Ireland and the Competition Authority, will make Mr O'Brien the largest commercial radio station owner in the State.

Today FM is RTÉ radio's main competitor and has a number of shows that have challenged or surpassed RTÉ in sectors of the market.

The purchase of the stations would significantly increase Mr O'Brien's importance in the Irish media scene. As well as the radio stations he already owns, he has built up an 8.3 per cent stake in the largest newspaper group in the State, Independent News & Media. He has not commented on his intentions but there has been speculation he might in time seek to replace Sir Anthony O'Reilly as the main shareholder in the Independent group.

Communicorp already owns national radio station Newstalk, prominent Dublin station 98 FM, and youth station Spin 103.8. The Competition Authority will now have to decide if it can be allowed retain these stations, or if it is in danger of moving into a dominant position in particular sectors.

Communicorp was the top bidder for three Irish stations being sold by British media group Emap plc. As well as Today FM and FM 104, Communicorp is also set to purchase Donegal station Highland Radio. A number of entities put in bids for the three stations and Communicorp was identified as the winning bid at the weekend.

There was no comment from Communicorp or Emap yesterday, but both are expected to issue statements today. As a plc, Emap is obliged to advise the market first of the development.

All three stations are very successful in their markets. Figures earlier this year showed that Today FM had a 12.4 per cent market share. Newstalk had a 3.2 per cent market share, so together the stations command 15.6 per cent of the national market.

The figures also showed that Today FM's Ray D'Arcy Show was the eighth most listened to show in the State. Another of the station's most popular programmes, Matt Cooper's The Last Word, has more listeners than the RTÉ equivalent, Drivetime.

Nationally, Today FM attracts more young adults aged between 15 to 34 than any other station. FM 104 is the market leader in a number of categories in Dublin. Highland Radio has a 64.4 per cent market share in Co Donegal. A number of bidders sought to buy the three stations and they had been whittled down to just two when Communicorp was chosen at the weekend.

Its bid is understood to have been €10 million greater than that of the Vienna consortium, which included Ulick and Des McEvaddy, accountants Pearse Farrell and Greg Sparks, and others.

UTV and TV3 were also bidders as were The Irish Times and Vitruvian Partners, a UK private equity firm.

© 2007 The Irish Times

Radio Mad.

The news is confirmed by RTE News...

=============

www.rte.ie/news

O'Brien's company buys Irish radio stations
Sunday, 15 July 2007 22:53

A company owned by Denis O'Brien has purchased Today FM, FM104 and Highland Radio.

It is understood Mr O'Brien's company, Communicorp paid €200m for the stations which brought from Emap.

Dyson_

So if it goes through, what will happen to the top management in fm104?? Job or no job??? Wnder who will go and wo will be kept? And should O Brien be allowed to have his finger in so many pie's???

icdg

I would strongly argue against O'Brien being allowed to control both Today FM and Newstalk, and be pretty worried about the long term co-existance of both FM104 and 98FM if both came under common ownership..

With Today FM and Newstalk, you will see after a while arguments from O'Brien as to why he should have to run identical-type current affairs programming on both stations at the same time. This will be a prelude to the axing of the Last Word and the Sunday Supplement.

With 98FM and FM104, their reasons for co-existing become rather minute if they are both essentially canibalising each other. Both will be under common ownership. Both offer essentially the same product. A merger will no doubt be proposed in time (with the merged station taking both the 98.1 and 104.4 frequencies). The argument for the BCI is that if you let both stations be under common ownership, and both are aiming for the same audience, in the same market, why should both exist at all.

Both should be blocked, but I would imagine in these days of compromise, one will be let through with one being blocked to satisfy the concerns.

Think about the Dublin Radio Market though:

RTÉ: Radio 1, 2FM, Lyric, RnaG.
Communicorp: Today FM, FM104, 98FM, Spin1038.
UTV: Q102.
Independent: Country Mix.

I am excluding community radio from this analysis, its market share is negligable anyway. If one also excludes the RTÉ stations, it leaves four out of six commercial stations run by O'Brien. Of the two remaining, Country Mix's market share is negligible. That leaves just Q102 to oppose the O'Brien empire. That's a dominent position if every I saw one.

SimonMaher

icdg wrote:

I would strongly argue against O'Brien being allowed to control both Today FM and Newstalk, and be pretty worried about the long term co-existance of both FM104 and 98FM if both came under common ownership..

With Today FM and Newstalk, you will see after a while arguments from O'Brien as to why he should have to run identical-type current affairs programming on both stations at the same time. This will be a prelude to the axing of the Last Word and the Sunday Supplement.

With 98FM and FM104, their reasons for co-existing become rather minute if they are both essentially canibalising each other. Both will be under common ownership. Both offer essentially the same product. A merger will no doubt be proposed in time (with the merged station taking both the 98.1 and 104.4 frequencies). The argument for the BCI is that if you let both stations be under common ownership, and both are aiming for the same audience, in the same market, why should both exist at all.

Both should be blocked, but I would imagine in these days of compromise, one will be let through with one being blocked to satisfy the concerns.

Think about the Dublin Radio Market though:

RTÉ: Radio 1, 2FM, Lyric, RnaG.
Communicorp: Today FM, FM104, 98FM, Spin1038.
UTV: Q102.
Independent: Country Mix.

I am excluding community radio from this analysis, its market share is negligable anyway. If one also excludes the RTÉ stations, it leaves four out of six commercial stations run by O'Brien. Of the two remaining, Country Mix's market share is negligible. That leaves just Q102 to oppose the O'Brien empire. That's a dominent position if every I saw one.

Ahem, dont you forget about us in Phantom towers. I know we're small but we're growing! Independent player here too.

Im staying out of the rights or wrongs of this deal

Simon

connundrum

Rupert Murdoch here we come tbh.

If I want to hear your opinion I'll ask Dennis O'Brien

icdg

Simon Maher wrote:

Ahem, dont you forget about us in Phantom towers. I know we're small but we're growing! Independent player here too.

Im staying out of the rights or wrongs of this deal

Simon

Apologies! You haven't been on air for too long, that's why I forgot. Even so, doesn't change the overall picture of O'Brien having the three largest Dublin ILRs and two INRs.

dulpit

icdg wrote:

Apologies! You haven't been on air for too long, that's why I forgot. Even so, doesn't change the overall picture of O'Brien having the three largest Dublin ILRs and two INRs.

Question - Would O'Brien be the type of owner who just owns the stations but leaves everything alone? Or will he take a more of a hands-on approach?

Like will the management of the various stations remain intact and will they still be "competitors"? Or what?

Cork

RTE has 4 national licences - this deal I think won't be blocked.

Still I would be concerned about it.

Slicklink

RTE is the public service broadcaster !

Communicorp is a commercial corporation!

RadioCity

Doesn't EMAP own Downtown and Cool FM in Northern Ireland?