RTE ‘not up to pace’ alert amid shock €10m ‘new brand’ takeover move

RTE last night insisted 2fm was not for sale – as the Government was urged to consider listening to offers for the crisis-hit station.

Yesterday, the Irish Sun revealed how Classic Hits radio are poised to make a €10million offer to buy out 2fm.

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Chief Kevin Brannigan has written to RTE boss Kevin Bakhurst and Media Minister Catherine Martin to state their intention to make an offer.

Brannigan said: “By buying 2fm off RTE, we can reduce the licence fee and repay the Government some of the millions they have lost on 2fm in the past few years — and continue to lose — and, effectively, save this station.”

Last night, former Newstalk CEO Frank Cronin told the Irish Sun he was in favour of the sale and said that €10 million was a good price.

He said: “I don’t know enough about the finances of 2fm. All I know is €10 million is a lot of money. I know RTE could use €10 million.

“It’s a very good offer in my view when you consider what you would have to do, to upskill the brand and make a brand out of it, and resize the cost structure.

“There are a lot of costs that come with 2fm, that a commercial station wouldn’t have.

“I’m sure that anyone prepared to buy it for €10 million, it would end up costing a lot more to get the cost base right”.

Cronin – the former CEO of the Sunday Tribune and Setanta Sports – also doubted whether the national broadcaster could make 2fm exciting enough to appeal to its target audience.

‘Isn’t up to that pace’

Frank said: “To be a brand for 20- and 30 year-olds, you have to be incredibly fast moving.

“You need to have an energetic social media presence. You have to be out there and RTE probably isn’t able for that. It isn’t up to that pace.

“RTE couldn’t take the brand risks you would need to take in that place. It doesn’t appear like a place that can cope with too much excitement now.

“They need to stabilise their ship. I think it needs a new brand and it needs to live to a new brand. In my view that can only be done outside RTE.”

‘Open and transparent process’

Former tanaiste Michael McDowell also believes that RTE should consider the offer to buy 2fm but he claims that the national broadcaster needs to secure the best price.

Asked about the €10m offer, Senator McDowell told the Irish Sun: “I think they should consider it but they should have an open and transparent process for it.

He added: “I often wonder if 2fm is necessary. I mean there is such huge competition in the market – is RTE bringing anything extra to it there?

“I think RTE should get the best price they can for it.

“I think if they want to concentrate on public service broadcasting then they should ask themselves why they are competing with all of the music stations.”

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

Brannigan has 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.

He told The Irish Sun: “2fm has a very valuable position in the marketplace but has been operating in a bubble for years.

2fm ‘not for sale’

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

The radio boss admits the €10m offer is down on what he would have paid ten days ago — after a meltdown that saw the departure of some of its biggest names.

Asked to comment on The Classic Hits bid for 2fm, an RTE spokeswoman told us: “2fm is not for sale as it is an important part of our public service remit, reaching younger audiences; developing new talent and supporting new Irish music.”