Last evening, media and communications group Jagran Prakashan (JPL) announced its entry into the radio industry, through the acquisition of Radio City 91.1 FM, a radio channel owned by Music Broadcast Private Limited (MBPL).
Mahendra Mohan Gupta, chairman and managing director, Jagran Prakashan, said in a press release on the matter, "This deal will catapult JPL into a leadership position in the radio industry and enable the company to benefit from the rapid growth in radio advertising. The radio business will complement our print, outdoor, activation and outdoor businesses, and enable deeper inroads with advertisers, both at the national and local levels."
Apurva Purohit, CEO, Radio City 91.1 FM, says, "Jagran Prakashan has entered into an agreement to acquire Radio City 91.1 FM, subject to the approval of the ministry of information & broadcasting. This augurs well for all the stake holders. Both Jagran and Radio City have been pioneers and leaders in their respective space and this partnership will help augment the growth aspirations of the brand. We look forward to exciting times ahead."
Quoting KPMG FICCI, he said, the radio business is expected to grow at over 18 per cent CAGR in the coming years.
The press note goes on to inform that the acquisition will take place through an all-cash deal, will be funded primarily through internal accruals and investments, and is subject to regulatory approvals (including from the Ministry of Information and Broadcasting) and execution of binding agreements.