Annette Sharp: Radio industry in shock at ARN Media’s bid to acquire Southern Cross Austereo

News that ARN Media wants to acquire rival Southern Cross Austereo sent shockwaves through the radio industry this week, raising questions about what could happen to some big-name stars, writes Annette Sharp.

WSFM breakfast duo Amanda Keller and Brendan Jones — and fellow winners of last weekend’s 2023 Australian Commercial Radio Awards — barely had time to drop their glamorous gowns and tuxedos at the dry cleaner before the midweek bomb blast.

Three days after the radio partnership collected the ACRA award for Best On-Air Metro Team, news broke that their parent company had launched an ambitious bid to acquire longtime rival SCA in a deal that, if approved, could see the Pure Gold network, in which the Jonesy & Amanda WSFM breakfast show is housed, cut adrift from ARN and parked in a new, yet-to-be founded business.

That mooted business is to be reshaped by private equity firm Anchorage Capital.

As the shock news reverberated through the industry, staff at both companies puzzled over what it may mean to their future careers.

Industry chatter has it that SCA, or Southern Cross Austereo, has for some time been a target for a private equity buyout, with five consecutive year-on-year revenue declines fuelling speculation the company may be a willing target.

Amanda Keller and Brendan Jones at the Australian Commercial Radio Awards days before the news broke. Picture: Supplied

The company’s two Sydney radio stations, the traditionally star-heavy former top-rating Triple M and 2DAYFM, have struggled to capture a joint 10 per cent of the Sydney market share in the year to date.

In the latest radio survey, Triple M achieved a 6.1 share to 2DAY’s 4.8 — results that saw those stations finish a dismal seventh (Triple M) and eighth (2DAY) in the latest radio survey, beaten by 2GB (11.1 per cent), KIISFM (10.9), SmoothFM (9.1), WSFM (8.5), ABC SYD (7.3) and Nova (6.4).

Mick Malloy. Picture: Julie Kiriacoudis

Marty Sheargold.

In the same survey, limping into equal ninth place with Triple J with a 4.3 per cent share, was once-dominant talk radio station 2UE, a haunting reminder of how corporate takeovers can reduce to dust the standing of a broadcaster.

2UE has never recovered from a 2001 takeover involving SCA’s progenitor Southern Cross Broadcasting.

In Melbourne, SCA’s stations fared better in the latest ratings survey.

2DAY’s southern counterpart, 101.9 Fox, managed a third with a 9.5 share (behind 3AW and Gold104.3), while Triple M claimed eighth place with a 6 share.

Those results reflected the performances of the station’s breakfast teams, the still popular combination of Fifi Box, Brendan Fevola and Nick Cody on Fox, and the polarising Marty Sheargold on Triple M.

The news could scupper Kyle & Jackie O’s bid for a $200m 10-year contract.

According to the proposed blueprint for the SCA takeover, the deal will transform ARN into a “focused” metro radio network of 10 stations across Sydney, Melbourne, Brisbane, Adelaide and Perth, with two supercharged radio brands — KIISFM and Triple M.

A second company would have a “regional radio footprint comprised of 88 stations”, which presumably would include 2DAY/FOX/HIT and the Pure Gold stations.

Of course, it’s all dependant on the proposal getting the green light from media regulator ACMA.

Industry pundits were split firmly down the middle on whether the deal will get the go-ahead, with some pointing to the failure of shares to spike significantly post-announcement as an indication investors weren’t confident the proposal would get the go-ahead.

The proposal promises to shake up the industry and leaves the futures of many radio stars, including the aforementioned ones, under a cloud.

Dave Hughes. Picture: Getty Images

Ed Kavalee.

ARN is expected to keep and network to other states and regions KIIS’s successful Kyle and Jackie O breakfast show, however the proposed takeover does put a significant dent in the duo’s hopes of negotiating a new $200 million 10-year deal.

That deal was leveraged on the proposition SCA had made a counter-offer to lure Sandilands and “O” away from KIIS.

If that SCA counter offer no longer, or perhaps ever, existed, would the duo be happy to remain at KIIS on their existing record-setting $6 million (including bonuses) contracts and forego a hoped for $4 million-a-year payrise?

And without the threat of the duo’s walkout hanging over radio execs’ heads, would any savvy radio executive see value in signing any talent to a 10-year term in a diminishing market?

Erin Molan.

To “focus” the new “focused” ARN, executives will have to re-evaluate the talent roster and will be under pressure to fix the underperforming Triple M.

Jobs under scrutiny may include those of Mick Molloy in Sydney and Marty Sheargold in Melbourne, both of whom are high-price stars who have failed, thus far, to restore Triple M to ratings dominance.

At KIISFM, Melbourne breakfast hosts Jason Hawkins and Lauren Phillips, and others in the breakfast slot at affiliates, will be nervous should ARN push ahead with networking plans for the Kyle & Jackie O show.

Anchorage Capital’s regional mash-up could end up with an embarrassment of riches.

Along with Keller and Jones and juggernaut Christian O’Connell on the Pure Gold offerings, they would have Dave Hughes, Carrie Bickmore, Tommy Little, Ed Kavalee, Box, Fevola, Cody and Erin Molan on the books, in addition to the hosts of myriad other shows on 88 stations.

Interestingly, a large number of ARN/SCA star contracts are up at the end of next year, notably Sandilands, “O”, Hughes, Keller and Jones — a fact which suggests the radio landscape in 2025 is very much still up for grabs.

KELLER ‘SADDER, KINDER’ AFTER SHOCK FAMILY SECRET

Amanda Keller’s teary appearance at the ACRA Awards came days after the media personality chose to disclose a well-guarded family secret.

Addressing her Double A Chattery podcast audience, Keller revealed her husband of 34 years, Harley Oliver, had been diagnosed five or six years ago with Parkinson’s disease.

It was, she said, her voice breaking repeatedly, something she had planned not to disclose, “but I think it’s time”. Oliver joined the conversation in which the couple addressed the way the disease had affected their lives “in a million ways”.

Artist Harley Oliver and wife Amanda Keller in 2016.

“(Harley) was absolutely scared and in denial. and then when he came home and said that was what it was, we both sat there completely numb,” Keller said, talking for the first time about the life-altering news that was so hard to absorb and led to frustrations which she “hates herself” for.

“At the beginning I was just cross with him — not cross with him but I’d say ‘Stand up straight’ … ‘Can you talk in a louder voice?’ All the things that it does, I thought ‘Why isn’t he fighting it?’

“And, of course, I’ve come to see he can’t control this and neither can I, and that’s been a big lesson for me.

“So I’ve become kinder and sadder.

“Coming across something you can’t change is so hard, so hard,” she said, referring also to the couple’s IVF experience which produced two cherished sons, Liam and Jack.

Oliver decided it was time to go public with his diagnosis following the death of his mother. “She wouldn’t have dealt very well with the idea I had Parkinson’s … I wanted to keep it away from her,” he said, before telling his wife he loved her.

Last Saturday at the ACRAs Keller reminded an audience of her peers that she loved going to work and “laughing (her) head off” with her friend and on-air partner Brendan Jones.

She said it “saved” her every day.

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