Top Story

e4m_logo.png

Home >> Media - Radio >> Article

Radio Mirchi-Oye FM merger blocked by MIB

18-May-2015
Font Size   16
Radio Mirchi-Oye FM merger blocked by MIB

The proposed acquisition of Oye FM by Radio Mirchi has been blocked by the Ministry of Information and Broadcasting (MIB) which declined to give its approval for the deal to go through stating that the deal does not meet the Phase III guidelines. ENIL, in a stock filing dated May 9, 2015, said the companies will be appealing against the decision.

Radio Mirchi operates in more than 30 geographies in India and the addition of Oye FM’s 7 stations would have further strengthened its position, especially with additional frequencies in key cities like Delhi, Mumbai and Kolkatta.

However, this is exactly the bone of contention between the MIB and ENIL. Multiple frequencies are not allowed under Phase II guidelines though they are under the new Phase III guidelines. The complication arises since any deal that is completed before the auctions will follow the Phase II rules.

The head of another radio station, who did not wish to be named, said the chances of the deal going through are bleak. “A lot of deals did not take place because of the multiple frequency issue. If the Radio Mirchi-Oye FM deal is allowed to go through it will be unfair on other operators and I am sure they will protest against it,” the person said.

An official statement was not received by either of the two stations at the time of writing of this article. However, a source close to developments said that both companies are currently evaluating the next step and a decision should be reached by next week.

Tags Oye FM TV Today Radio Mirchi ENIL Abhinn Shreshtha

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

In terms of affiliates, India ranks on the top. Spurred by the fast growth of mobile users and hence internet users, there are millions of websites, apps, WAP-sites and blogs using affiliate marketing...

Insecurity in the workplace due to the idea of AI encroaching on your job, or being sidelined at work because of your small town background? Sandeep Goyal has the right answers to help you deal with w...

As National Sales Head at News18.com, Ashish aims to bring on board a maximum number of advertising partners and consolidate the network’s position as a leader in the space.