The Fairfax and Macquarie radio networks have agreed to merge placing Sydney rivals 2UE and 2GB into the one network with Melbourne’s top rating talk station 3AW.
Under the terms of the merger Fairfax will be the dominate partner controlling 54.5% of the combined company. Macquarie will be left with a 45.5% share with its biggest shareholder John Singleton diluted down to a 31.85% share of the new business.
As part of the deal, Fairfax has sold its Perth radio station to the Australian Radio Network for $78 million. The acquisition of 96FM into ARN has expanded ARN’s KIIS Network to five capital city stations in Sydney, Melbourne, Brisbane, Adelaide and now Perth.
Macquarie, also the owner of 2CH in Sydney, will now be required by law to sell to 2CH. Radio ownership is limited to two stations per market under Australian law.
The Fairfax Macquarie merger is expected to be finalised my March 2015.
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