Apr 2007 Financial News

OCM buys five radio stations

Apr 24, 2007

ONE Caribbean Media Limited (OCM) has signed a share purchase agreement with Cumulus Media Inc for the acquisition of five radio stations across the Caribbean.

The agreement, which is subject to the appropriate regulatory consents and authorisations for the relevant broadcast licenses, was signed yesterday at OCM head offices on Independence Square in Port of Spain.

The acquisition will result in a 100 per cent ownership of shares of Caribbean Communication Company Ltd (CCCL) and its subsidiaries from Cumulus Media. Cumulus Media is the second largest radio company in the United States and owns and operates 345 radio stations in 67 US media markets. OCM is the parent company of the Trinidad Express Newspaper, CCN TV6 and the Barbados Nation Newspaper.

OCM, chief executive officer, Craig Reynald, said yesterday, "I think that this will be an ideal opportunity with the development of the Caribbean Radio Network, that we are hoping to do with this acquisition, to have journalists contribute to the content of news on current affairs that we will initially broadcast on radio, but subsequently on television when we get that network going as well."

He added, "What we want to do is develop journalists who are not restricted by the mediums they serve but see themselves as content providers, providing content regardless of what medium we chose to distribute it on."

Reynald admitted that the project would be "a challenge that we have to embrace and overcome because the benefits make it worthwhile".

Upon the completion of the acquisition, OCM will own five FM stations, including HOTT 93 in Trinidad and Tobago, The Wave in St. Lucia, GEM-FM in St Kitts-Nevis and 93.9FM in Antigua-Montserrat.

OCM chairman, Sir Fred Gollop, said, "Combined with OCM's existing radio operations, Starcom Networks four stations in Barbados and Grenada Broadcasting Network's two stations in Grenada, this will represent the creation of the first truly pan-Caribbean radio network and will significantly improve their competitive position with both listeners and advertisers."

He added that this acquisition was consistent with OCM's regional broadcasting strategy.


Source:
Driselle Ramjohn (dramjohn@trinidadexpress.com)
The Trinidad Express
Tuesday 24, April 2007

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