Yes that was right but one would think all these years down the track it would no longer be relevant or Bill Crews could have been heard on 2CH rather than religious programmes on both stations.
EON Broadcasting is apparently buying 2CH for $5.5 million, beating a bid of $5.75 million from Bruce Gordonâs WIN. EON has guaranteed to play music that appeals to the 60+ demo and won the bid despite WIN offering more money. The deal is expected to be announced next week.
http://www.theaustralian.com.au/business/media/eon-55m-bid-likely-to-snare-2ch/news-story/c54c9bfba4c2323f083b141ffc8875e3?nk=a6bba46aeb49ee1e2b647127ca90f405-1481743521
Unfortunately canât read the article, but why would a lower bid win?
The article states itâs because of the guarantee to play content that appeals to the 60+ demo.
A cheaper offer that wonât compete with their other stations may be more appealing. It could also be in the detail of which staff contracts etc they will take care of.
How would a sale be able to impose such conditions? What would stop EON turning around and doing a decent format?
Would be very interested in what WIN would have done with it.
It would likely be in the contract or a separate memorandum or understanding or the like to accompany the sale. It may have a time limit such as for 5 years or something. It could even be in the detail of Macquarie retaining ownership of the transmitter and only allowing it to be used for a certain type of content (similar to when a property lease dictates what you can and canât use the property for).
In reality though, it would be very difficult to enforce. It would need to be proven that any breach of the contract caused a quantifiable loss to the other party, and it would also need to worded in such a way that it doesnât break any anti-competition laws (or other laws). The incentive to not breach the contract/agreement wouldnât be in the risk of being sued, but rather the expensive legal costs involved if the other party did try to challenge it.
I would also imagine that such a contact would specify that Macquarie wonât launch a competing station within a reasonable period of time (eg. 5 years) - and this is perfectly legal and common in the sale of businesses.
That said, for all the we know, based on the usual quality of reporting by The Australian and the fact that this has come via a leak, it may just be the the contract includes that EON intend to continue broadcasting to an over 60s demographic, without actually being anything enforceable - itâs not uncommon for large contract to specify an intended use.
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I would have thought that if Macquarie was dictating the format of 2CH that could be considered to be still in breach of the 2-station rule as they would have a fair amount of control over the station without owning it.
Would it depend on how vague that wording is? Stating âthe 60+ demographicâ still gives EON/whomever a lot of wriggle room. Sports appeal to over 60s, as do any number of music formats.
One benefit would be that WIN could put C91.3 onto digital radio.
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EON should lease 3MPâs 1377AM and operate a talk/music network. 1377am / 1170am, DAB+ and online.
My take is this is likely to ensure the continuation of the Magic network. EON has history of this with Sea FM Sunshine Coast continuing as âpartâ of the Hit network after the forced sale. Acma must have been convinced it was separate enough from Macquarie but my money is Magic 1170 will continue, as will Magic Melbourne and Brisbane
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arenât they being replaced by 2UE Lifestyle?
ACMA must actually have some say in formats when they enforce a sale.
Itâs VERY common overseas in places like UK and Canada where prospective licences must propose what format or market segment they will serve. It actually ensures diversity and they should do more of it. Otherwise you end up with 3 CHR stations in Sydney, 4 if you count The Edge.
Thatâs the rumour but I wouldnât be surprised if they donât.
All the remaining Magic staff have been given notice that their jobs will no longer exist from late February.
Classic rock is an over-60s format, though!
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Mind you, 2CH has been known to play Led Zeppelinâs âStairway To Heavenâ (though not since the Magic rebrand AFAIK).
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There are plenty of 60+ who like The Who, they donât all like Doris Day. 
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