At an estimated cost of around $100 million
Of the move that shows confidence in the Australian Radio Industry, Mr Murdoch said in a statement today,“We are pleased to move to 100 per cent ownership of DMG Radio Australia.”
Mr Murdoch bought 50% of the radio network from UK newspaper publisher Daily Mail and General Trust (DMGT) in November 2009. Now, he is believed to have paid around $100 million for the additional 50 per cent about $10 million less than it is thought he paid for the first half.
Mr Murdoch said: “When we acquired our 50 per cent interest in DMGRA in November 2009 we set out to create one of Australia’s leading media companies. Over the past three years, working alongside DMGRA’s wonderful staff, we have successfully implemented our growth strategy.
“In that time Nova has regained its position as the Number 1 national network for people 18-39 and we have successfully launched SmoothFM. The EBITDA (earnings before interest, taxes, depreciation, and amortisation) of DMG has doubled and the IRR [internal rate of return] on our initial investment is more than 60 per cent.
“We have great confidence in the continuing potential of radio, great confidence in the management team we have built under Cathy O’Connor, and look forward to further growing DMGRA in the coming years” Mr Murdoch said.
Messer L Murdoch will buy 3AW/Magic Melbourne, 2UE Sydney. 4BC/4BH Brisbane & 6PR 96FM Perth then sign all Nova Staff to 3AW, 2UE, 4Bc, FiveAA & 6PR and Make Miagc a Nationasl; Network by Sign Mike Perso & Kathy Din to Magic in Melbourne, Sign all 2CH Staff to Smooth 93.5 and rebrand that as Magic 95.3 Rebrand 4BH and 96FM in Brisbane and Perth as Magic 693c & Magic 96.1FM sign all 96Fm and All 6IX Staff to to Magic 06.1FM and Rebrand 4BH as Magic 882 and sign all 4KQ staff to Magic 882 also Rebrnad NOva 919 as Magic 919 the sign all staff from Cruise 1323 to Magic 919FM.