BROADCASTING regulators say the businessman Denis O’Brien does not control an “undue” share of the media market with his radio stations and his 26 per cent holding in Independent News & Media (INM).
In a review prompted by the appointment in March of three of Mr O’Brien’s associates to the INM board, the Broadcasting Commission of Ireland (BCI) yesterday found his various media investments do not breach its ownership rules.
Mr O'Brien is the second-largest investor behind Sir Anthony O'Reilly in INM, owner of the Irish Independent, the Sunday Independent, the Sunday World, the Evening Heraldand several regional titles.
INM is engaged in a difficult negotiation with its banks and bondholders on the repayment of a €200 million bond, overdue since May.
He owns the national radio stations Today FM and Newstalk, Dublin channels Dublin’s 98 and Spin 103.8 and has a “substantial” stake in Spin South West radio, which broadcasts in Clare, Limerick, Kerry and parts of Tipperary and Laois.
“At a meeting today the board of the BCI made a decision in respect of the media interests of Mr Denis O’Brien in the franchise areas of the State, Dublin and the southwest of Ireland,” the BCI said in a statement last evening.
“Applying the provisions of its Ownership and Control Policy (2008), the commission has determined that Mr O’Brien does not have control of, or substantial interests in, an undue amount of communications media in any of these franchise areas.”
The BCI said the definition of communications media includes radio, television, newspapers, magazines, journals and broadcasting services platforms.
“In making this decision the commission had regard to the totality of communications media in each of the franchise areas and the relevant audience shares of these communications media.
“The BCI then applied two tests as provided for in the policy, a test of substitutability and a test in regard to dominance in relation to opinion forming power. In applying these tests the commission had regard to the particular characteristics of the various communications media (eg type, cost to user, size and nature of target audience).”
The BCI said it was satisfied that sufficient “substitutability” exists in terms of communications media in each franchise area. “In addition, the board was satisfied that Mr O’Brien’s substantial interest in Independent News Media, coupled with his radio interests, do not constitute dominance in terms of his ability to influence opinion-forming power in any of these franchise areas.”
In a weekend interview with the Sunday Times, Mr O’Brien said examinership was an option for INM.
He also said he was opposed to INM’s plans to sell its South African advertising business INM Outdoor, the biggest of four assets slated for disposal to raise funds as the firm tries to reach a deal with its banks and bondholders.
INM declined to comment.
Certain close observers say his views on INM Outdoor may be in keeping with his stated resistance to recent INM proposals to settle the bond and his tough bargaining stance with bondholders.
However, INM Outdoor was known to be on the market when Mr O’Brien’s associates Lucy Gaffney, Leslie Buckley and Paul Connolly became INM directors.
There was no public suggestion from Mr O’Brien at that time that he opposed selling the asset.
