Lachlan Murdoch buys 50% stake in DMG Radio Australia, owner of Nova network

Lachlan Murdoch has acquired a half share in DMG radio Australia, owner of the Nova and Vega radio networks in a deal billed as the media heir’s first major step into active media ownership.

Under the terms of the deal, Murdoch’s investment company Illyria will acquire a 50% stake in DMG Radio Australia from British media company DGMT.

The company will be run as a joint venture, with Murdoch as chairman and Illyria holding management control.

DMG Radio Australia chief executive Cathy O?Connor will stay on as chief executive and radio industry veteran Paul Thompson will remain as an adviser to Murdoch.

A spokesperson for DMG Radio Australia says all other staff members will remain in their current positions.

While Murdoch holds a number of passive media investments – including a stake in Prime Media – this is his first “active” media acquisition.

Murdoch has been linked with a huge variety of media deals since stepping down as an executive of his father Rupert Murdoch’s company News Corporation in 2005.

In January 2008, Lachlan Murdoch and friend James Packer announced a deal to privatise Consolidated Media Holdings, but the deal floundered on a lack of finance.

“Patience is a virtue, and after exhaustively searching the market for the right acquisition, we have found in DMG Radio Australia the right business, the right partner and the right brands which are positioned for exemplary growth,” Murdoch said in a statement.

“The skills we have in-house at Illyria will complement the strengths of DMG Radio Australia. I’m looking forward to working with Cathy O?Connor and her team.”

DMG Radio Australia holds nine radio licences, including the national Nova FM network of stations in Sydney, Melbourne, Brisbane, Adelaide and Perth and the Vega FM stations in Sydney and Melbourne.