HOME

News

  
 

SYDNEY, March 29 AAP - Flamboyant UK billionaire Richard Branson has teamed up with John Singleton's Macquarie Radio Network (MRN) to bring his Virgin Radio brand to Australia.

   The 50-50 joint venture, which marks Sir Richard's first foray into local media here, will operate under the Virgin Radio Australia banner.

   The group has applied to the Australian Broadcasting Authority (ABA) to bid for FM commercial radio licences in Sydney and Brisbane to be auctioned next month and will compete for another in Melbourne later this year.

   However Mr Singleton, whose MRN already owns Sydney AM stations 2GB and 2CH, told 2GB today it may well be the case that the asking prices are prohibitive.

   "If they are, then other options will turn up," he said.

   "There are other FM stations out there now that are unprofitable and ultimately they'll be offloaded and we'll be sitting there."

   Virgin Radio Australia will run an all music format, in direct competition with successful British newcomer Nova which only requires the Brisbane license for a presence in all Australian capital cities.

   "Imagine 2GB and then imagine exactly the opposite," Mr Singleton said of initial plans for the network.

   The joint venture said the strength of the partnership lay in the power of Virgin's brand and proven programming experience in FM radio, combined with Macquarie's local knowledge, state-of-the-art infrastructure, sales expertise and management.

   "By bringing together Virgin and Macquarie we have created a dream team that will shake up FM radio in Australia," Sir Richard said.

   "The Australian public has openly embraced the Virgin brand in the areas of airline services, credit cards and mobiles - we believe the same will be the case with Virgin Radio."

   The Virgin Radio brand has previously been used by Sir Richard in cities such as London, Paris and Bangkok.

   MRN chairman Sam Chisholm said Macquarie's news and sales teams were acknowledged as leaders in this market while Virgin's brand and track record in radio was second to none.

   "Virgin Radio Australia will reap the benefits of this combined expertise," he said.

   Mr Chisholm said the new network would be fully integrated into Macquarie's existing infrastructure, both from a cost and speed-of-implementation perspective.

   The Virgin Radio Australia board will include Sir Richard as chairman, Mr Chisholm as deputy chairman and Mr Singleton as a director, with further appointments to be made in the near future.

   Eight bidders have lined up to vie for Brisbane's new FM radio licence and six will compete for another up for grabs in Sydney.

   The Australian Broadcasting Authority said last week the applicants for Sydney's licence, to be decided at an April 15 auction, included British company Daily Mail, Harbour View Radio, Southern Cross and Sydney Radio Company.

   Stations lining up for the Brisbane licence a week later include Daily Mail, Brisbane Radio Company, Star Broadcasting Network, Hot Tomato Australia, ARN Brisbane and River View Radio.

   There is a reserve price of $1 million for each of the licences, but each is expected to fetch at least $70 million.

   AAP