Mergers and acquisitions among Canadian radio stations are heating up as major players, such as Rogers and Astral, seek to gain a bigger share of a market forecast to grow at more than 4% a year, industry experts said. The overall radio market in this country is on track to grow 4.1% each year to reach $1.7 billion in 2014 after losing some ground in 2009, according to a report published by PricewaterhouseCoopers earlier this month. Over-the-airways advertising in Canada will rise 1% on a compound annual basis to $1.3 billion in less than four years time, PwC projected. Even with the recession, conventional radio has done very well.
Last week, CTVglobemedia’s CHUM Radio said it would buy Toronto’s New Flow 93.5 FM from Milestone Radio for an undisclosed amount. A few days earlier, Rogers Communications announced it was preparing to buy Edmonton’s Bounce FM and BOB-FM in London, Ont., from CTV. Corus Entertainment said earlier this spring it plans to sell 11 of its under-performing stations in Quebec to Cogeco for $80 million in cash in order to focus on other markets. Another company has now offered $81 million for the assets. Cogeco borrowed $100 million for the purchase, according to reports.
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