The proposed merger of the 2UE/2GB newsrooms and sales operations will not go ahead as planned. 2UE will still move premises to Pyrmont, but will not share services with 2GB.
Staff were informed at simultaneous meetings at both stations this morning and a statement has now been released to the market.
After reading the 11am news on 2UE where the decision was reported, Steve Blanda signed off with the words: “This is a relieved Steve Blanda for 2UE news.”
Mike Carlton, who has been a strong critic of the joint venture, spoke to radioinfo:
Carlton: We are delighted, it feels like Christmas has come early here.
radioinfo: What do you think of Tony Bell?
Carlton: Tony Bell had the good sense to listen to his staff and the audience. He has made a brave decision and a good one.
radioinfo: What do you think Alan Jones will think of this decision?
Carlton: I couldn’t care less!
In a statement to the Stock Exchange, Southern Cross Broadcasting said it would “retain its independent news and retail advertising sales services and not proceed with all the elements of the proposed joint venture with Macquarie Radio Network.”
Managing Director, Tony Bell’s statement said:
“While we had reached an in-principle decision to proceed with the joint venture, in working through the detailed agreement over the past few days it became clear it was not in the interests of our listeners and staff.. Both companies share a desire to gain financially from a strong strategic alliance, but the community reaction to the proposal, combined with some strategic differences, convinced us not to proceed with a shared news service.
“Clearly, there were concerns raised by a range of stakeholders who are important to us and as a broadcaster, we have responded to those concerns.”
Although the two potentially difficult aspects of the proposal have been scrapped, 2UE staff were told today that the company is still looking for business ventures together.
In the Stock Exchange statement Bell confirmed that discussions on other elements of the joint venture will proceed, saying:
“We will continue to work with MRN to explore other cost savings options. We believe we can still achieve close to the financial benefits we identified through the joint venture proposal by other initiatives.”
“Our focus now is on growing revenues at 2UE and being recognised as the leading commercial news and current affairs station in Sydney.”
Speaking to an openline caller, John Law’s summer relief, George Moore said: “There is great joy in the coridoors here. 2UE has a great heritage and it has been protected.”
Macquarie Radio Chairman Sam Chisholm, who brokered the deal, says the decision “is a matter entirely for Southern Cross.”
2GB staff sources told radioinfo they are also pleased with the decision to scrap the joint venture, feeling that they can now continue to compete agressively against 2UE without having to compromise for the sake of the bottom line.
NSW Premier Bob Carr, who weighed in against the proposal last week says he is pleased the deal is not going through. His government made a submission to the ABA opposing the joint venture.
One wry commentator told radioinfo: “I guess that makes The Australian Media Section’s whole feature cover story obsolete on the day it was published. I guess if you want to be really on top of the news listen to the radio don’t read the papers.”
To read what the papers are saying – and they’re saying plenty – just click on Paper Clips in the red, left hand margin.