SYDNEY: Lachlan Murdoch's private investment company Illyria has taken a 50% stake in DMG Radio Australia.
The acquisition sees Illyria form a 50/50 joint venture with Daily Mail & General Trust (DMGT), with Lachlan Murdoch to become chairman of the joint venture company.
Media reports today have suggested Murdoch spent around $110 million for the 50% stake in DMG.
A subsidiary of Daily Mail & General Trust, DMG Radio Australia was launched in 1996.
In 2000, DMG paid $155 million for a commercial radio licence in Sydney which later became the Nova network, while in 2001, DMG spent $70 million on a Melbourne FM licence.
DMG Radio Australia holds nine radio licences, including the national Nova FM network with stations in Sydney, Melbourne, Brisbane, Adelaide and Perth and the Vega FM stations in Sydney and Melbourne.
Murdoch, the son of News Corporation chairman & CEO Rupert Murdoch, said DMG Radio was a strong business with talented on-air and off-air staff.
“Together we will explore new growth opportunities in the existing business and also in related media,” he said.
DMGT chairman Lord Rothermere said: “I am thrilled to welcome Illyria as a partner in DMGT's growing Australian radio business.”
Murdoch has been looking to add media assets since forming Illyria in 2005 after resigning from News Corporation.
In January 2008 Illyria's attempt with Consolidated Press Holdings to privitise Consolidated Media Holdings, which held stakes in the Nine Network, ACP and Foxtel, failed.
In April 2009 Illyria took a 9.1% stake in regional TV group Prime Media.
According to US reports today, Illyria is also in talks with News Communications chief executive James Finkelstein to acquire The Nielsen Company's trade publishing unit which includes Billboard, The Hollywood Reporter and Adweek.
For the eleven month period to 31 August 2009, DMG's underlying revenues fell by 2%, reflecting the weakening of the radio advertising market in Australia which declined 4%.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.