UBC Media has announced the completion of an agreement with Channel 4 for the broadcaster to acquire a 51% interest in UBS’s national radio station, Oneword Radio, for a cash consideration of £1 million. This will make further progress towards the creation of a Channel4-led radio operation to compete directly with BBC Radio 4.
UBC took full control of Oneword in July 2004 in order to restructure its business. At the time, its then partner, USI Holdings, sold its 50% interest in Oneword to UBC for £754,938.
Channel 4 signed a deal with UBC last month, giving Channel 4 control over the station which will broadcast nationally via the Digital One multiplex, as well as through BSkyB, Freeview and BBC Radio 4.
Commenting on the deal, Simon Cole, chief executive of UBC said: “We are delighted to have reached agreement with Channel 4 for the development of Oneword Radio. This is the first time that a UK television broadcaster has taken such a major strategic stake in a radio station.”
Cole continued: “We believe that Channel 4’s investment is an important vote of confidence in the prospects for digital radio in the UK and in UBC’s position in that marketplace.”
Michael Hodgson, head of corporate development at Channel 4 added: “As we move towards a fully digital and converged world, we are actively exploring opportunities that exist across all digital platforms and UBC Media will be a valuable partner to help us further explore the radio sector.”
Rumours of the acquisition began last summer, with UBC announcing plans to work with Channel 4, as well as with third party companies, to explore ‘the potential of using Oneword as a transmission platform for a Channel 4 radio station’ (see UBC Announces Plans For Radio With Channel 4).
The move is the latest expansion by Channel 4, which looks to be eagerly acquiring properties in order to secure its position in the multi-channel future. Last year saw the broadcaster explore possible merger opportunities with Five and although these seemed fruitless there have been several similar indications of the broadcasters intentions since (see Channel 4 Walks Out On Five).
Yesterday, it was announced that Five’s managing editor and director of acquisitions, Jeff Ford, would be replacing Channel 4’s head of acquisitions June Dromgoole following the announcement of her retirement after seven years with the broadcaster.
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