Fairfax Radio Network announces merger with 2GB owner Macquarie

THE OWNER of Sydney’s struggling 2UE radio station Fairfax Media has announced a “merger of equals” with the owner of its long-time archrival 2GB.

Ross Greenwood, Ray Hadley, Alan Jones, Ben Fordham and Chris Smith. Picture: John Feder

THE OWNER of Sydney’s struggling 2UE radio station Fairfax Media has announced a “merger of equals” with the owner of its long-time archrival 2GB.

Ending years of on and off again discussions, and sometimes public slanging matches, Macquarie Radio this morning confirmed its shareholders would own 45.5 per cent of the merged company and Fairfax the rest.

The deal will see 2GB’s Alan Jones and Ray Hadley work now work for the same company as there longtime archrivals at 2UE.

Macquarie’s majority shareholder, the adman John Singleton, said in a statement: “Joining forces is a win for both MRN and FRN.”

The companies did not disclose if the merger would result in large scale job cuts, though it is expected it will.

Mr Singleton’s language is a lot more diplomatic to the statements he made in February after merger talks between the two stalled. At the time he called Fairfax chief executive Greg Hywood a “third-rater” and “idiot” and chairman Roger Corbett a “pompous pr. k”.

“Mr Hadley and Mr Jones are the key assets of any value in Macquarie Radio and without an opportunity to meet with them there was no point in Fairfax Media pursuing talks with the highly volatile and emotional organisation,’’ Mr Singleton then said.

The deal will still need to be approved by Macquarie shareholders at a meeting scheduled for March. The merger will see the consolidation of the Fairfax and Macquarie networks in Sydney, Melbourne, Brisbane and Perth.

Fairfax chief Greg Hywood said the “merger brings together the greatest mix of talkback talent ever assembled in a single radio network”. He said it was a “compelling transaction”. Fairfax aside from owning a majority stake in the merged network will get an “equalising cash payment” from the deal.

The merged entity will be run seperate from Fairfax and headed by Macquarie’s current chairman Russell Tate.

Former 2GB and 2UE host Jason Morrison said the deal was akin to the Daily Telegraph merging with its archrival the Sydney Morning Herald, or Channel Seven and Nine joining forces.

“2UE & 2GB have been solid commercial rivals for close to 90 years,’’ he said on Twitter.

Fairfax also announced the sale of its Perth 96FM station to APN News & Media’s Kiis FM for $78 million.