Tony Bell is a happy man this week. He has ‘realised value’ for his Southern Cross Broadcasting shareholders and may also walk away with a tidy little personal fortune when the deal is completed for the sale of Southern Cross to Macquarie Media Group and Fairfax. He spoke to radioinfo about the deal and hosed down speculation that it could fall apart over problems with tv affiliation fees.
radioinfo: It has been reported that your shareholdings, payout and superannuation package when this deal is completed could amount to over $10 million. Are you the ten million dollar man?
Bell: My shareholding and options are detailed in the annual report so people who want to look into my private affairs can go there, look and do their own sums.
radioinfo: There are reports today that the renegotiation of television affiliation fees may be a deal breaker.
Bell: Unlikely. It’s quite a normal process for a company changing control to apply for an assignment of the affiliation agreement. It is a normal process for them to carefully consider the transfer, and it takes time, it may have to go before the board of directors. There is nothing abnormal about this, and it is pure sensationalism for some media outlets to suggest otherwise.
radioinfo: What are you going to do after the deal is completed?
Bell: I have offered to help with the transition and have a confidential agreement with the acquirers.
radioinfo: Fairfax has made much of the synergies between its newspaper operation and the talk radio stations it will acquire, but it has not said anything about the music stations. Will it sell them?
Bell: I would be staggered if they were to sell. I haven’t discussed it with them, but there are good reasons to keep these stations: they are profitable; there are synergies with the sister stations; and it allows the company to control another frequency in each market.
radioinfo: In comparison to newspaper and tv businesses, radio brings in a small profit line. What are the other benefits for the new owners in acquiring the radio stations?
Bell: Every medium these days is looking beyond their traditional method of delivery so that they can continue in this age of convergence. Their strategies are completely sensible for the evolving media markets of today.
radioinfo: Was the John Laws contract an important factor in finalilsing the deal? Did you ‘help him decide’ to retire?
Bell: Niether John Laws or myself were aware of any consideration of the acquirers to make an offer at the time he talked to me about his retirement.
radioinfo: You will be leaving a company you have almost singlehandedly built up into one of Australia’s largest media operations. Any last thoughts as the clock ticks down on the final days of Southern Cross Broadcasting?
Bell: I think if this transition concludes it will be good for our shareholders. It’s also an excellent fit for the acquirers, tv will enhance Macquarie as a great regional media compay and no doubt the talk stations will take advantage of the great resources of Fairfax. So it’s a win for everybody.
While Tony Bell was happy to talk to radioinfo, the other players in the biggest deal in Australian media in recent years are remaining tight lipped, saying it is too early to speculate on what they will do with their new media properties. Spokespeople for MMG Managing Director Alex Harvey and Fairfax CEO David Kirk fended off calls from radioinfo this week, preferring to wait until the deal goes through in October before commenting publicly on their detailed plans.