The biggest investor in HT&E, which owns iHeartRadio and Kiis FM, the home of Kyle and Jackie O, has spoken out about a possible M&A tie-up with Seven West Media, saying consolidation is likely but it is hesitant about free-to-air TV.

Fund manager Allan Gray, which owns 20 per cent of HT&E, says the company’s ability to generate clear cash flow makes radio a compelling asset. The fund also owns almost 22 per cent – also the major shareholding – of Southern Cross Media Group, the parent company of HT&E’s rival radio giant Southern Cross Austereo.