The way has been cleared for Scottish Radio Holdings (SRH) and UTV to take over a number of radio stations in the Republic following the decision by the Broadcasting Commission of Ireland to allow 100 per cent ownership of radio stations and other broadcasting media.
SRH, a 24 per cent shareholder in Today FM, wants to buy out the remainder of the station for £47 million (€60 million), while UTV has made it clear it would buy out the 40 per cent of Cork-based County Sound not owned by it for about £12 million if media ownership rules change.
"Our position has always been that when the conditions were suitable and subject to any regulatory hurdles, we would like to have total ownership of Today FM," said Mr Richard Findlay, chief executive of SRH, welcoming the Broadcasting Commission's decision to relax ownership rules yesterday.
"There's no urgency about the matter. Obviously we will be discussing the situation with the shareholders over the course of the next week or so."
The Commission said yesterday, in the light of the changing broadcasting environment, it would consider allowing 100 per cent ownership where all the other criteria set out in its policy were met. Commission rules had previously stated that no company could own more than 27 per cent of an independent radio station.
This restriction was waived earlier this year when the Commission agreed to UTV's purchase of 60 per cent of County Sound for about £17.1 million.
"It would be a matter for an applicant wishing to take 100 per cent to make a case to the Commission that all of the safeguards necessary to ensure pluralism and diversity, as envisaged in the Commission's policy, are in place and will be met," the Commission said.
In considering the composition of a company, the Commission said it would not differentiate between either an individual/ family, or a private or public company.
The Commission said it considered ownership of 15 per cent or less of commercial broadcasting licences across the State to be an "acceptable level" for any one investor. However, it said ownership of between 15 and 20 per cent of broadcast licences would require "more careful consideration".
"A number equivalent to over 25 per cent would be unacceptable," it said.
The Commission also said that no single investor should have more than a "reasonable share" of the range of communications media available to audiences in a franchise area. It said this would be considered on a case-by-case basis.
It also said it did not regard local ownership as an essential element in the achievement of a local ethos in broadcasting.
