KEY POINTS:
MediaWorks is playing catch up with arch rival TRN with the purchase of Mai FM from management and Auckland tribal owners at Te Rununga o Ngati Whatua.
Chief executive Graham Pryor - who with two other managers owned 50 per cent of the company - expects to leave the station once the deal goes through on March 31.
The deal is a breakthrough for MediaWorks - owned by Australian private equity firm Ironbridge Capital - as it gets access to publicly owned radio frequencies for the first time.
The purchase of the commercial hip hop station increases MediaWorks' share of the Auckland radio audience from 25 per cent to 31 per cent, compared with 49 per cent held by TRN.
At 5.6 per cent, Mai FM's share of the Auckland audience is bigger than More FM but smaller than ZM FM.
TRN has a considerable lead in Auckland which is important for sealing national advertising deals with advertising agencies.
The acquisition will also round out MediaWorks' growing share of stations aimed at young listeners who turn on its stations The Rock and The Edge.
More FM, Radio Live and The Breeze aim at an older audience.
The deal has similarities with MediaWorks' purchase of the Kiwi FM frequencies, where it provides access to valuable Government-owned FM frequencies that are not available on the open market.
The purchase of Mai FM means MediaWorks owns the stations in Auckland and Whangarei, and frequencies in Whangarei. It also picks up two unused frequencies in the Orewa area.
But MediaWorks will not own the Auckland Mai FM 88.6 radio frequency, which was allocated to Ngati Whatua.
Te Rununga o Ngati Whatua will act as consultants for MediaWorks, meeting commitments to Maori as part of the obligations in holding the Maori frequencies. But even under part ownership of Te Rununga o Ngati Whatua, Mai FM has had cursory obligations.
It has focused on an urban rhythm and blues programming style that has been successful but which has come under increasing commercial pressure.
MediaWorks chief executive Brent Impey said: "We certainly recognise and appreciate the very important role Mai FM plays in the fostering, promotion and development of Maori language and culture, and we are committed to continuing the excellent model Mai has developed to perform this role."
