RTÉ insists ‘2FM not for sale’ despite Classic Hits Radio owner being prepared to pay €10m for station

The owner of Classic Hits Radio has offered €10m to take over 2FM in a bid to privatise the crisis-hit station but RTÉ insists it is “not for sale”.

Kevin Branigan, chief executive of Bray Broadcasting, which includes Ireland’s Classic Hits Radio and Radio Nova, wrote to RTÉ director general Keving Bakhurst and Media Minister Catherine Martin.

In the letter to Mr Bakhurst and Ms Martin, he said: “I would like to state that we are interested in making an offer to purchase 2FM and that we believe the station should be privatised.”

Mr Branigan said that Bray Broadcasting believes 2FM could have a “positive future” but that its future should be in the private sector and “not as a part of RTÉ”.

He added in his letter to Mr Bakhurst, which was first reported in the Irish Sun, he said that it is difficult to see how 2FM can ever regain a strong market position under its current strategy.

“We believe that a privatised 2FM, right-sized to the type of operating structures and staffing levels found in the commercial radio sector, could build a competitive future as a radio service,” the letter adds.

The offer of €10m is based on an approximate multiple of eight times of normalised earnings, which could value 2FM in excess of €10m, Mr Brannigan said.

He told the Irish Independent that he would have to see if 2FM is privatised, whether it would be operated under the same cost and staff structures as the independent radio sector.

On whether Mr Bakhurst would be willing to sell, he said: “I think they should consider it.”

However, in a statement to the Irish Independent today, RTÉ said: "2fm is not for sale as it is an important part of our public service remit, reaching younger audiences; developing new talent and supporting new Irish music.”

Mr Brannigan said he has seen not action from RTÉ on downsizing since the payments scandal broke a year ago.

“All we have heard since the payment scandal is that there will be a report, that they are going to rationalise. He has also mentioned that there is going to be a smaller RTÉ, but as of yet we haven’t seen any actual action. We haven’t seen any actual report,” he said.

Mr Brannigan said that the key question is “what is the role of 2FM?”.

“What is it supposed to be doing? Is it supposed to replicate what is in the independent radio sector and is the taxpayer supposed to fund that to the tune of €3.5m per year?”

He also alluded to the value of the radio market for 15 to 34 year olds, pointing to Bauer Media, who purchased iRadio, Beat, Cork’s Red FM and Spin South West, who he said “must believe there is value”.

“If you look at 2FM’s position, it is the only national youth radio licence, yet they vastly underperform their listenership compared to what Bauer are bringing in with their stations.

“To my mind, there is value in the market but it is clear RTÉ don’t know how to deliver the audience and their present strategy has failed to do that.

“We believe, with 2FM under the same type of programming values, cost structures and staffing structures, you would see the independent sector become a real force again, like it was 20 years ago,” he said.

He also hinted that if 2FM was purchased and privatised, it would be open to “speak to anyone” who would be willing to return, such as presenters the 2 Johnnies and Doireann Garrihy, who recently left the station.

Mr Branigan said a privatised station would be “more free” to take on people who would deliver an audience, stressing that there are “a lot more factors going against RTÉ” in doing so.

“We believe that there are opportunities for 2FM in the independent sector which aren’t being realised now. It is a very exciting time for radio in Ireland.

“There has been a lot of acquisitions, purchasing of radio stations and we don’t see why RTÉ should be any different if they have assets that are not performing and they need to raise money.

“We still believe there is value in 2FM,” he said.

Both RTÉ and the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media have been contacted for comment.

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