Berlusconi Family Adds Radio to Media Holdings

Michael Hedges January 26, 2005

Arnaldo Mondadori Editore finalized its purchase of all or parts of three Italian radio channels through its new subsidiary Monradio.

The announcement January 22nd establishes a final price of €39.6m for Radio 101, purchased from One-O-One Radio Service Srl.  Monradio also acquires 10% of Rock FM Srl, licensee of local Milan stations Rock FM and Radio Milano International. Rock FM Srl is owned by International Radio Network Holdings, recently formed subsiderary of Greek publisher Attica Publications Group. Mondadori upped its stake in Attica Publications in October 2004 to 40%. Attica is the licensee of Athens, Greece radio station Radio Dee Jay.

Audience shares for Radio 101 have fallen in recent years, rating near the bottom of Italy’s national networks, according to the most recent Audiradio survey. The Radio 101 network was launched in 1986 as a national service of Radio Milano International.

Mondadori and the radio broadcasters reached agreement for the transaction at the end of July 2004. The purchase was finalized upon completion of due diligence. Regulatory approval is pending though not in question as Mondadori is controlled by Fininvest, the media holding company of Silvio Berlusconi, Italy’s richest man and its Prime Minister. Mondadori’s chairman is Marina Berlusconi, also deputy chairman of Fininvest. Fininvest also controls Mediaset, Italy’s largest commercial television broadcasting group.

Carlo Mandelli named Monradio Executive General Manager

Carlo Mandelli was named Executive General Manager of the newly formed Monradio. Other Mondadori executives have joined Monradio.

The company will invest another €20m in radio investments over the next three years said Monradio President and Mondadori Vice President Maurizio Costa to Italian press.