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.