Denis O'Brien's Communicorp Group is set to buy the State's largest commercial radio station, Today FM, and the leading Dublin station FM 104, in a €200 million deal.
The deal, subject to approval by the Broadcasting Commission of Ireland and the Competition Authority, will make Mr O'Brien the largest commercial radio station owner in the State.
Today FM is RTÉ radio's main competitor and has a number of shows that have challenged or surpassed RTÉ in sectors of the market.
The purchase of the stations would significantly increase Mr O'Brien's importance in the Irish media scene. As well as the radio stations he already owns, he has built up an 8.3 per cent stake in the largest newspaper group in the State, Independent News & Media. He has not commented on his intentions but there has been speculation he might in time seek to replace Sir Anthony O'Reilly as the main shareholder in the Independent group.
Communicorp already owns national radio station Newstalk, prominent Dublin station 98 FM, and youth station Spin 103.8. The Competition Authority will now have to decide if it can be allowed retain these stations, or if it is in danger of moving into a dominant position in particular sectors.
Communicorp was the top bidder for three Irish stations being sold by British media group Emap plc. As well as Today FM and FM 104, Communicorp is also set to purchase Donegal station Highland Radio. A number of entities put in bids for the three stations and Communicorp was identified as the winning bid at the weekend.
There was no comment from Communicorp or Emap yesterday, but both are expected to issue statements today. As a plc, Emap is obliged to advise the market first of the development.
All three stations are very successful in their markets. Figures earlier this year showed that Today FM had a 12.4 per cent market share. Newstalk had a 3.2 per cent market share, so together the stations command 15.6 per cent of the national market.
The figures also showed that Today FM's Ray D'Arcy Show was the eighth most listened to show in the State. Another of the station's most popular programmes, Matt Cooper's The Last Word, has more listeners than the RTÉ equivalent, Drivetime.
Nationally, Today FM attracts more young adults aged between 15 to 34 than any other station. FM 104 is the market leader in a number of categories in Dublin. Highland Radio has a 64.4 per cent market share in Co Donegal. A number of bidders sought to buy the three stations and they had been whittled down to just two when Communicorp was chosen at the weekend.
Its bid is understood to have been €10 million greater than that of the Vienna consortium, which included Ulick and Des McEvaddy, accountants Pearse Farrell and Greg Sparks, and others.
UTV and TV3 were also bidders as were The Irish Timesand Vitruvian Partners, a UK private equity firm.