2025: Radio’s year of give and takeover

Analysis from Steve Ahern

As the calendar year grinds to a close a signal is being sent about the media industry’s corporate strategy for 2026.

Stability.

The past two years have been an unstable period for radio and the wider Australian media industry as companies positioned themselves to implement or defend takeover bids, or both.

In 2024, shortly after SCA divested itself of its tv interests, it faced a takeover bid from ARN which destabilised both companies and set off a chain reaction on the SCA shareholder register that lasted long after the ARN bid was rejected. The shareholder revolt led by Sandon Capital was finally put down at last month’s SCA annual general meeting. Meanwhile SCA and Seven have initiated a merger which will again give the combined company control of radio and tv assets.

Amidst the mergers and acquisitions process, many SCA staff were made redundant and the share price fell, then gradually recovered a little.

At ARN, 2024 ushered in the ‘adventurous’ Kyle and Jackie KIIS networking strategy that brought the successful Sydney duo into the Melbourne market.  It triggered a campaign by activists who targeted ARN advertisers and scared off some clients who were concerned about brand safety from advertising in breakfast across both markets. It did bring in new clients who did want to be associated with the duo’s ‘edgy’ image, but on balance there were more advertising losses than gains. I heard from several ARN sources that some ads were specifically marked in large letters ‘not for KIIS breakfast,’ as a result of the campaign to intimidate advertisers.

If ARN’s agressive expansionist strategy in Melbourne and the SCA takeover bid had worked the company’s share price would have risen and the leadership team would have been hailed as heroes who had cut costs while increasing audience share, revenue and shareholder value. It didn’t. Instead the share price dropped and the former ARN Melbourne breakfast team, Jase, Lauren and Clint joined Nova 100, grew audience and topped the ratings. In just the last few weeks the upbeat upfronts revealed the final details of the rebranding and Christian O’Connell, Amanda and Jonesy networking strategies for Gold and KIIS.

Amidst the failed acquisition bid, networking and rebranding, many ARN staff were made redundant, including Lauren Joyce. And the share price fell.

Amidst all the action, Nova Entertainment seems like the quiet achiever, just like its smooth fm brand. That’s the advantage of not being a company listed on the stock exchange. The network is owned by Lachlan Murdoch’s private investment company Illyria. But rumours are swirling around the company, which some say might be ripe for a sale, given that Lachlan now has a big job running the world wide Fox and News Corp empire. This week’s news that News Corporation has sold all of its shares in ARN signals that the cross ownership investment strategy may be coming to an end. Meanwhile, Lachlan Murdoch’s mum, Anna still has an interest in radio, owning a share in the Gold Coast’s Hot Tomato with her brothers, Hans and the late Jaan Torv. That station has tightened its budget and shed staff this year too.

And just today, ARN has sold its SCA shares, taking it off the share register and potentially ending the destabilising strategy of cross company share ownership.

Of the big 4 radio companies, that just leaves Nine Radio in play. As a public company, the Nine Entertainment board has a duty to examine any takeover offers that come its way to ensure shareholders get value. Currently it is open to offers for its radio network and actively examining at least one offer, from a John Singleton consortium. With his advertising background, Singleton knows the power of talking up deals in the media, and he has been talking up his interest in regaining the network he once owned if Nine decides to sell. There are pros and cons for the Nine board in this move. Eventhough radio is a tiny part of the Nine empire, it sits well strategically with Nine’s newspaper, online and television infrastructure and presents an integrated offering to advertisers.

There are no more synergies to be screwed out of the radio operation. Nine, like the other networks, implemented a round of redundancies when it took over the former Macquarie Radio network, but those happened some years ago along with a clensing process related to its ‘toxic’ workplace culture. The current round of Nine Entertainment redundancies does not affect radio. The only reason Nine Entertainment would sell its Nine Radio network is if the monetary offer is too good to refuse.

Apart from the big networks, there are some other things happening as the smaller networks position themselves for 2026.

SCA will have to divest some of its small West Australian stations as part of the Seven West merger. It hopes to convince the government and the regulator to change the rules so it can keep them, but in my view that is unlikely. If it does sell them, there are opportunities for one of the other WA media companies to acquire them. Maybe the family owned Coast and Wave FM in Mandurah, where control has just transitioned from father to son and a new generation is in charge.

The ABC has also had its share of destabilisation over the past two years, with several painful rounds of redundancies and staff changes at the top.

Radio companies continue to contribute so much to the community, the reports here on radioinfo are full of the connections with listeners, contributions to charity, intelligent discussion and a contest of ideas, support for the local community, music initiatives, successful promotions for businesses and the many ways that this industry has given back to Australia.

The work that CRA is doing to promote radio and make it easier to buy in the face of tight revenue is also an important initiative. There are many positives.

2SM, under its second generation family ownership, is slowly developing a strategy for reentry into the ratings, reinvigorating its regional network and expanding its offering to advertisers.

Ace Radio is stable and now quietly confident in its slow growth success strategy. It is opportunistic in the best sense of the word. While not looking for deals, the leadership is always open to a good business conversation.

In these, and the handful of other small radio companies that are still privately owned, there is no public share price pressure, but there are still revenue pressures and strategic business decisions to be made.

Redundancies may look good to investors on the balance sheet, but they eat away at team morale and create a hidden long term liability to the company. The only cure for that is stability, good management decisions, steady revenue growth and a confident industry image built on good strategic leadership. 2026 may be a bit more stable after the recent divestments.

I hope we can play our part in making 2026 a good year through the Australian Audio Awards initiative we have launched with Mumbrella. A good party and genuine recognition of staff contributions always helps industry confidence.

Wishing us all a year of stability and success in the audio industry in 2026. We need it.

About the Author

Steve Ahern is the CEO of training company AMT and the publisher of this audio industry trade journal.