‘Radio Mirchi’ is operated by Entertainment Networks India Ltd ( ENIL) has inked a pact to acquire the seven ‘Oye FM’ radio stations run by the TV Today Network to expand its presence in FM broadcasting space. Radio Mirchi is present in at least 32 cities including in Mumbai, Delhi and Kolkata. The proposed deal would also expand its presence to cities like Amritsar, Jodhpur, Patiala and Shimla.
Terms of the deal remain undisclosed. Industry insiders indicate the deal is worth around Rs 50 crore. In separate announcements, the two entities said they have entered into a “non-binding memorandum of understanding” for the proposed deal, but did not disclose financial details.
ENIL reported healthy financials for the quarter ended December 31, 2014. Radio Mirchi reported a 27 per cent increase in Q3 net profit at Rs32.9 crores. Consolidated revenue for the quarter was up 18.7 per cent to Rs 117 crores.The acquisition makes perfect sense for Radio Mirchi. Oye FM has operations in seven cities, including Delhi, Kolkata, Amritsar, Mumbai, Jodhpur and Patiala, but it will most likely be the licenses in Delhi and Mumbai, which would have interested any potential buyer. The new licenses available in Mumbai and Delhi are limited; just one for Delhi and two for Mumbai, and this is bound to create a huge pressure on operators. Reducing the frequency gap, which would have allowed more stations per city was something that certain radio stations had asked the ministry to consider; an idea that was finally rejected by the MIB.