ARN Media acquires stake in rival radio broadcaster SCA
Radio broadcaster ARN Media has acquired a 14.7% interest in Southern Cross Media (SCA) for $38.3 million.
ARN Media, formerly HT&E, announced the news Tuesday morning via the ASX.
ARN Media has acquired a stake in SCA
According to the ASX market announcement, the company acquired the stake “as a strategic equity investment in a sector it knows well.” ARN Media sees the equity position in rival broadcaster SCA as “representing attractive value for ARN Media’s shareholders”.
ARN Media would be deemed to control SCA’s commercial radio and TV broadcasting licences if the company held an interest of 15%, but as ARN and SCA control the maximum permitted two commercial radio broadcasting licences in all metro markets, and several regional markets, ARN Media is prohibited from holding a higher interest.
SCA shares have jumped 25% at open today, almost returning to the levels it had a year ago.
ARN Media has ownership of ARN’s 58 radio stations across 33 markets, including KIIS FM, CADA and the Pure Gold network, as well as digital entertainment platform, iHeartRadio.
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Lauren McNamara is a journalist at Mumbrella, covering the creative and PR beat. She joined in November 2022 as editorial assistant, after completing a Bachelor of Communications (Journalism) at UTS.
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