Rival Classic Hits radio boss makes €10 million bid for crisis-hit 2FM takeover

The owner of Classic Hits Radio has offered €10 million to purchase 2FM from the national broadcaster, in a bid to privatise the crisis-hit RTÉ radio station.

It was revealed this morning that Classic Hits boss Kevin Branigan, has written to RTÉ boss Kevin Bakhurst and Media Minister Catherine Martin to state his intention to make an offer. The story was initially reported by The Irish Sun.

Branigan also vowed to try to bring back some of the top talent that recently walked away from 2FM, including Jennifer Zamparelli, The 2 Johnnies and Doireann Garrihy.

Brannigan is CEO of Bay Broadcasting, the company behind Classic Hits Radio and Radio Nova. He also owns a 46 per cent share in Sunshine Radio.

Branigan told The Irish Sun: "2FM has a very valuable position in the marketplace but has been operating in a bubble for years.

"It is being heavily subsidised by taxpayers’ money while it has continued to vastly under-perform in listenership and revenue terms."

In an exclusive statement, Branigan told Iconic Media that his company had bass their €10 million figure "on a multiple of eight times normalised earnings, which could value 2FM in excess of €10 million".

"We believe that there is value to 2FM but that value would be only realised if it was privatised," he continued.

When asked about the current challenges facing 2FM, as well as how the CEO would attract and retain top talent to present for the station, Branigan said "talent management has become a major issue for 2FM".

"It has been suggested that the Register of Interest rules have a part to play in that. I believe that a rationalised 2FM, run and structured along commercial lines, would have no issue in attracting top talent."

Asked if the bid had a chance of success, Branigan said that "there is no way for us to tell what the chances of success are".

"It is ultimately up to RTÉ and the Government to decide," he concluded.