Fairfax Media has confirmed it has had talks with Macquarie Radio Network over a possible merger of its radio assets.
The company issued a statement to the Australian Securities Exchange yesterday in which it noted merger speculation, but said “no decision has been made to merge with Macquarie Radio Network”.
“Fairfax receives approaches and has discussions with interested parties from time to time, but has nothing to announce at this point in time,” it said.
“Fairfax confirms it is in compliance with ASX listing rules and will keep the market informed as required.”
It is understood that both sides are in preliminary talks about a joint venture, which would combine Fairfax stations such as Melbourne’s top rated 3AW with Macquarie Radio’s 2GB.
Such a merger would create a combined AM network with earnings before interest, tax, depreciation and amortisation of $32 million.
If a merger were to proceed, Fairfax would be a majority shareholder meaning the company would also have management control over the merged entity.