Communicorp expands, Emap changes

If regulators concur, Emap’s three Irish radio stations will join the Communicorp family. The purchase agreement signed over the weekend and announced to the London Stock Exchange Monday ends month long bidding for another part of Emap’s broadcast holdings it wants to shed. Communicorp, Denis O’Brien’s radio company, will pay about €200 million (£135 million, US$275 million).

The three stations are nationally licensed Today FM, Dublin station FM104 and Highland Radio. Communicorp already owns “quasi-national” NewsTalk106, Dublin stations 98FM and Spin FM and Spin South West. The Irish competition authority and regulator Broadcast Commission of Ireland (BCI) may require a spin-off or two, if not already agreed. FM104 and 98FM are archrivals in the Dublin market. Dermot Hanrahan, former FM104 manager, was the last bidder called out in the auction.

Emap wants a complete and fast exit from broadcasting, the Irish deal almost certainly vetted in advance by competition authorities. Friday (July 13) the Financial Times reported Emap’s intention to sell a half-stake in its music TV channels to Channel 4 for an estimated €44 million (£30 million, US$61 million). Also on Friday Emap announced the €29.5 million (£20 million, US$41 million) purchase of Torcello Publishing, an online B-to-B information publisher. An Emap shareholders meeting was held last Thursday (July 12). For now, Emap is holding its UK radio stations, waiting for a premium.

Communicorp paid just under 14 times cash flow (13.8) for the three radio stations, reportedly the highest multiple ever paid for Irish stations. The company's deals on the Continent have been for higher multiples. At least one European radio deal - not Communicorp - fetched more than 25 times cash flow. Does Denis know something other media investors don't? Possibly.

  – July 17, 2007

Keywords: Communicorp, Emap

Flying Through Turbulence – Media in the New EU Member States

ftm reports on media in the 12 newest EU Member States. Will media find clear air or more turbulence? 98 pages PDF file (February 2007)

Free to ftm members and others from €39

See contents

Order

Rupert Murdoch - The Media Mogul

From Australia to the San Antonio, Texas tabloid to News Corp and News International, Mr. Murdoch fascinates all media watchers. Included is up to date information on the Dow Jones speculation and real deals, too. When Murdoch talks, the media world listens, and he has a lot to say about newspapers, broadcasting and new media. 42 pages PDF (June 2007)
Free to ftm members, others from €39
Order

Media Measurement Moves Forward and Everywhere

Includes: mobile and internet metrics, electronic measurement systems and device descriptions, RAJAR (UK) debate, with comments. 57 pages PDF (May 2007)
Free to ftm members, others from €39

See what's inside