Southern Cross Broadcasting had reached an “in principle agreement” to buy Brisbane radio station 4BH from DMG Radio, giving it a similar two AM station combination as it has in Melbourne with 3AW and Magic693.
4BH currently broadcasts an Easy Listening format to the metropolitan Brisbane market of about 1.6 million. The Brisbane market is worth $60
million in revenue.
Managing Director of Southern Cross Broadcasting, Tony Bell, says: “This strategic acquisition will significantly strengthen our
position in the Brisbane market. When combined with our News/Talk
station – 4BC, our station share will exceed 16% of the Brisbane
radio market. The enhanced ratings position will be considerably more
attractive to advertisers and additional synergistic benefits will be
achieved in co-locating programming and sharing of resources. The
4BC/4BH combination will continue to target the affluent 40 plus age
demographic.”
Southern Cross Broadcasting has also acquired a
10.68% interest in Data and Commerce Limited (DCL), owner of 3AK and 3MP. An agreement has also
been reached with the vendors of the DCL shares to acquire their full
entitlement to shares to be issued under DCL’s current rights issue.
Chairman of Southern Cross Broadcasting, John Dahlsen believes buying into 3AK/3MP will give the company the ability to “explore further options in relation to our national radio network strategy.”
Southern Cross Broadcasting is restricted
under current media ownership rules from acquiring more than 15% of
DCL, but media ownership rules are currently under re-consideration by the government and may change in future.
Southern Cross Broadcasting currently owns talk radio stations 2UE Sydney, 3AW
Melbourne, 4BC Brisbane and 6PR Perth, together with music stations
Magic 693 Melbourne and 96FM Perth. The company also owns television
stations Southern Cross Ten in regional Queensland, New South Wales
(including the ACT) and Victoria, Southern Cross Television in
Tasmania, Channel 9 Adelaide, Spencer Gulf Telecasters, Seven Darwin
and Seven Central.