Former DMG and RG Capital stations, now owned by Macquarie Bank, are beginning to consider changes as the company takes its first steps towards achieving the “synergies” it forshadowed when it acquired both networks. Stations in the northern Townsville hub and the Southern Albury hub are both planning to co-locate into single premises as part of this process, which has been making some staff nervous.
Chief Executive Rhys Holleran (pictured) has told radioinfo there is no hidden agenda in the moves: “We have been transparent about what we are considering and we have tried to keep staff up to date on what’s happening. People will of course speculate on what may happen when two companies join together, but I’ve made myself available for anyone to contact me to ask me questions, so that they can find out what is true and what is rumour.”
Holleran says he has been to Townsville six times to discuss the plans with staff.
Any such moves will be strategic for the network, because if media laws change in mid 2005, as forshadowed in the Prime Minister’s 4th term parliamentary agenda, Macquarie Regional Radio Works may find itself able to keep more than the currently proscribed two stations per market.
On the other hand, if media laws do not change, the company will be in a position to sell the stations which do not fit into its strategic plans.
Under the current media laws, Macquarie Regional Radio Works now has about 11 months to divest its third and fourth stations in markets where it owns both former DMG and RG Capital stations.
The company, in its former identity as RG Capital Radio, is on the record criticising the current ‘two-to-a-market’ rule as inequitable and ridiculous. Past submissions by RG Capital have pointed out that two stations in Wollongong for instance have the ability to make much more money than two stations in Townsville or most of the company’s other regional markets.
If things go ahead as planned, Townsville’s RG Capital stations are expected to move into the DMG Hub building, and, according to radioinfo’s sources, there have already been a number of resignations from the former DMG stations in that market.
In Albury The River is expected to move into the DMG Albury hub, with 2AY preparing to be sold. In the mean time 2AY is expected to appoint a separate General Manager and some specific 2AY sales staff.
Holleran says such detailed speculation is “premature,” and that the company is currently focusing on merging its financial and reporting functions. “We haven’t taken any formal decision on 2AY yet, we are waiting for a report on it.”
Holleran did, however, confirm that a national FM regional radio network is core to the group’s business strategy, indicating that AM stations such as 2AY may not be a natural fit in the long term for the company.
There are over 1100 staff in the new company who are facing big changes in the coming months, from getting to grips with new automation systems to working at close quarters with their former competitors.