Ringier's new options with Energy
Radio I Ringier's entry into Radio Energy is more than just a radio strategy; it is the first indication of a partnership in the making.
Radio I Ringier's entry into Radio Energy is more than just a radio strategy, it is the first indication of a partnership in the making. it is hardly surprising in the industry that Goldbach Media is selling its 51 percent majority stake in Radio Energy. This is because the marketer of electronic media had already started to get rid of its content suppliers in 2002. First, the financial portal Moneycab and the content provider Swisscontent were divested, followed by the sale of the 49 percent stake in Hitradio Z. At the end of last year, Goldbach also sold its stakes in Radios Ri and Central. The sale of the majority stake in Zurich-based Radio Energy was therefore only a matter of time, but the fact that Ringier is now making a move comes as a surprise. The publisher had just sold its stake in Radio Pilatus to NZZ. "For Goldbach, the sale makes more sense than the purchase for Ringier," says Ronny Schmid, co-owner of the Konnex media agency, in an initial, spontaneous statement, echoing what can be heard in many places. Hardly anyone can make sense of what Ringier wants to do with Radio Energy. "I found out about the Energy purchase at the same time as the other employees. It's probably in the direction of media alliances," even Niklaus Hösli, Head of Ringier's Crossmedia Center, puzzles. The initial reaction of Martin Muerner, Head of Broadcasting at Radio BeO, is different: "The fact that the largest Swiss publisher is buying Energy speaks volumes for the medium of radio," he rejoices, but also adds: "Personally, I think it's a shame that Energy, as a previously publisher-independent radio station, is now becoming a publisher's radio station."
Ringier already DAB-activeJürg Bachmann, President of the Association of Swiss Private Radio Stations, sees "nothing negative when two private content providers join forces". Of course, because Bachmann is also a board delegate of Radio Z AG and Managing Director of Energy Zurich. And in this role, he sees a "huge opportunity" for Energy and is delighted with the "super solution" that has been found. However, he also still has to think about how possible synergies with Ringier can be implemented in concrete terms, as an FM frequency focuses on a specific area. "But new technologies such as web radio or DAB also open up new opportunities," he says.
At the beginning of the year, Ringier actually submitted two applications for the first three DAB frequencies under discussion - for a Cash Classics radio station and a chart radio station. However, following the purchase of Energy, it is already clear that only one of Ringier's DAB projects has a chance of obtaining a license and thus a free frequency. This is because, according to the new RTVA, a company may hold a maximum of two radio licenses. It makes no difference whether this is an FM or a DAB frequency, says Bernhard Bürki, spokesman for the Federal Office of Communications. Ringier takes a different view, however, and is in any case maintaining both applications (see interview).
The deal is probably much more than just Ringier's radio strategy anyway. A closer look reveals a number of similarities that make a closer partnership between Ringier and Goldbach a natural fit. As an independent publisher, Ringier is familiar with print marketing, but has obvious weaknesses when it comes to marketing electronic media. This in turn is Goldbach Media's strength, although the marketer has a gap in the print sector. Both companies are active throughout Switzerland. What's more, Ringier is very active in Eastern Europe, an area in which Goldbach has also declared its intention to expand. It would therefore be nothing more than logical for Ringier to acquire a stake in Goldbach Media in the near future.
How much is Radio Energy worth?
Ringier and Goldbach Media are keeping quiet about the price for Energy Zurich. But there are clues. In 2002, the French radio group NRJ paid Goldbach Media exactly 12221964 francs for the 49 percent stake in Hitradio Z (now Energy Zurich). This is based on official, publicly accessible documents. Similarly, Ringier would have had to pay around CHF 12.7 million for the 51 percent at the time.
Today, the purchase price is probably lower, as Energy Zurich has a lower market share than Hitradio Z at the time. This may reduce the value. In addition, the price paid by NRJ is considered excessive.
According to an industry expert: "The value of Radio Z AG was never CHF 25 million. The NRJ auditors should definitely have demanded value adjustments, as Tamedia's auditors did after the purchase of
Radio 24 and Tele Züri (twice) and Radio Basilisk (once for 2005)." Ringier is probably aware of this too.
Markus Knöpfli
Ringier already DAB-activeJürg Bachmann, President of the Association of Swiss Private Radio Stations, sees "nothing negative when two private content providers join forces". Of course, because Bachmann is also a board delegate of Radio Z AG and Managing Director of Energy Zurich. And in this role, he sees a "huge opportunity" for Energy and is delighted with the "super solution" that has been found. However, he also still has to think about how possible synergies with Ringier can be implemented in concrete terms, as an FM frequency focuses on a specific area. "But new technologies such as web radio or DAB also open up new opportunities," he says.
At the beginning of the year, Ringier actually submitted two applications for the first three DAB frequencies under discussion - for a Cash Classics radio station and a chart radio station. However, following the purchase of Energy, it is already clear that only one of Ringier's DAB projects has a chance of obtaining a license and thus a free frequency. This is because, according to the new RTVA, a company may hold a maximum of two radio licenses. It makes no difference whether this is an FM or a DAB frequency, says Bernhard Bürki, spokesman for the Federal Office of Communications. Ringier takes a different view, however, and is in any case maintaining both applications (see interview).
The deal is probably much more than just Ringier's radio strategy anyway. A closer look reveals a number of similarities that make a closer partnership between Ringier and Goldbach a natural fit. As an independent publisher, Ringier is familiar with print marketing, but has obvious weaknesses when it comes to marketing electronic media. This in turn is Goldbach Media's strength, although the marketer has a gap in the print sector. Both companies are active throughout Switzerland. What's more, Ringier is very active in Eastern Europe, an area in which Goldbach has also declared its intention to expand. It would therefore be nothing more than logical for Ringier to acquire a stake in Goldbach Media in the near future.
How much is Radio Energy worth?
Ringier and Goldbach Media are keeping quiet about the price for Energy Zurich. But there are clues. In 2002, the French radio group NRJ paid Goldbach Media exactly 12221964 francs for the 49 percent stake in Hitradio Z (now Energy Zurich). This is based on official, publicly accessible documents. Similarly, Ringier would have had to pay around CHF 12.7 million for the 51 percent at the time.
Today, the purchase price is probably lower, as Energy Zurich has a lower market share than Hitradio Z at the time. This may reduce the value. In addition, the price paid by NRJ is considered excessive.
According to an industry expert: "The value of Radio Z AG was never CHF 25 million. The NRJ auditors should definitely have demanded value adjustments, as Tamedia's auditors did after the purchase of
Radio 24 and Tele Züri (twice) and Radio Basilisk (once for 2005)." Ringier is probably aware of this too.
Markus Knöpfli
