Date for Fairfax, Macquarie, radio merger set

The merger of Fairfax and Macquarie’s radio assets should be finalised by March 31, after Macquarie shareholders gave unanimous consent yesterday. Both sides are joking about how the combined operations will begin on April 1.

Regulatory bodies ACCC and ACMA have already green-lighted the move.

The “merger of equals”, according to Macquarie Chairman Russell Tate, will see Macquarie pay Fairfax about $18 million. Fairfax gets a 54.5% stake in the new entity, called Macquarie Radio Network, with Macquarie holding the balance 45.5%.

Tate will serve as Executive Chairman for 12 months before being replaced in that role by Fairfax Radio’s current Managing Director Adam Lang. Lang takes over the role of Chief Operating Officer in the interim.

The merger will see some of Australia’s best known talkback radio hosts on the same network. It will also allow MRN easier access to national advertisers aiming at the over-45 demographic. Media sources estimate a profit mark of $700,000 a year.

Of its two flagships, this month’s radio ratings saw 2GB with 13% of the Sydney market, and 3AW with 13.6% share in Melbourne. In Perth 6PR gained 1.1 points for an 8.4% share while in Brisbane 4BC dropped to 4% from 5.1%. MRN will have the Magic music stations in Melbourne and Brisbane.
The deal also includes radio businesses Satellite Music Australia and Fairfax Radio Syndication. Sydney’s 2CH is already in the process of being sold (MRN cannot hold more than two licenses in the same city, with 2UE) with figures between $10 million to $7 million being banded around.

Tate told MRN shareholders at an extraordinary meeting in Sydney yesterday that there would be "significant cost and revenue synergies from enhanced networking and sales opportunities for the combined entity's news talk and music stations."

How many jobs will be shed as a result is not revealed yet.