MUMBAI: The talks of Mergers and Acquisitions (M&A) have already started amongst the radio players. It would be a chance for many players to enter new markets through M&A rather than going through the tedious auction process. The Phase III process is expected to end by the first quarter of the calendar year 2015, which will be followed by the radio stations announcing their M&A plans.
It would also be an opportunity for players to enter the market that are not open for auctions. According to sources, many local players especially the big brands in different sectors (other than media) will be looking at M&A to enter the Metropolitan cities like Mumbai and Delhi. If sources are to be believed the dialogues have already started between national and local players. It is estimated that there will be three to four major acquisitions.
It is heard that major brands like Red FM and Radio Mirchi will be announcing M&A or tie-ups.
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Sources further stated that it would be a chance for local MLAs and MPs to have their own radio stations in the C & D towns as they are priced lower. “Community Radio covers a range of five km so having FM radio stations would make more sense for the local MLAs and MPs,” said sources.
Regional players like Malayala Manorama, Muthoot Group, Rajasthan Patrika, will be looking at entering new markets through merger and acquisition rather than going through the auction process. Local and smaller players are going to play a big role in the M&A. In the past, Muthoot group which runs Chennai Live has expressed their desire to acquire existing radio stations rather than going through the long process of auctions and licensing.
In 2006, the India Today group sold its radio business to consortium of NDTV, Malaysia’s Astro and Hyderabad-based Value Labs.
