Britain's DMGT Grabs Yet Another Oz Radio License

16 April 2004

DMG Radio, a unit of Britain's Daily Mail & General Trust, has been award its sixth Australian metropolitan FM radio license, this time in the nation's largest city, Sydney.

DMG's A$106 million coup ($78.6m; €65.6m; £43.8m) was achieved at the expense of high profile Brit entrepreneur Sir Richard Branson whose Virgin Group also bid for the franchise.

But many analysts believe the price paid is unrealistically high, forecasting that it will take DMGT between three to five years to regain its investment.

The latter, however, insists the buy is as much strategic as it is an investment. "If [Virgin] had got a licence and used it as a platform to launch a national network. . .it would have been very dangerous for us," said chief executive Paul Thompson.

Data sourced from: Sydney Morning Herald; additional content by WARC staff