Sydney FM Goes for $155 Million

Bidding was fierce for the first new commercial FM station license issued in 20 years in Sydney, New South Wales, Australia.
The Britain-based Daily Mail Group Radio paid a record A$155 million (US$88.5 million) for the 96.9 MHz allocation, beating out competitors 2UE and U.S.-based Second Generation.
The Sydney license is the first move by DMG Radio into a major Australian market. The group holds licenses for 58 regional radio stations across Australia, in addition to its holdings in the U.K. and Hungary.
DMG Radio Chief Executive Charlie Cox stated, “It (the acquisition) represents a vitally important gateway into metropolitan FM radio in Australia and the access to national revenue where such a station can provide.”
With a population of approximately 4 million, Sydney is the largest city in Australia and home to the 2000 Summer Olympic Games.
Competing bidders reportedly called the A$155 million bid “insane,” but DMG Radio Australia Head Paul Thompson told the Sydney Morning Herald, “You do your own calculations of what value is, and we are very confident that this is within the range that can achieve value for our company.”
T. Carter Ross