Times Media Group has announced the acquisition of a 60% interest in KwaZulu-Natal gospel radio station Vuma FM, for R25.6 million.
In addition, TMG says it has committed to provide working capital to Vuma for the period until break-even is achieved by Vuma, which is expected to be within the next 12 to 18 months.
In December, TMG acquired a 65% interest in Mpower FM Radio, a commercial radio broadcaster based in Nelspruit, Mpumalanga, with a satellite studio in Emalahleni.
Launched in November 2012, Vuma is a commercial radio broadcaster, with casting mainly in isiZulu to the major regions of KwaZulu-Natal.
“The station has experienced good growth since its launch and TMG believes there is significant further potential for growth with the added resources of the group,” TMG said.
The media house said its strategy includes the acquisition and development of high growth potential broadcast assets in South Africa and in Africa, by way of rationale for the purchase.
Following the recent acquisition of an interest in Multimedia Ghana, and the purchase of Mpower Fm in Mpumalanga, TMG said it identified Vuma as an opportunity to add to its growing portfolio.
“The gospel and inspirational format is an extremely successful one on both radio and TV, locally and internationally, and thus an attractive asset for the group. TMG will
support the commercialisation of the station with an advertising sales solution from its industry leading national sales team and provide additional management and programming resources,” Times Media said.
TMG further pointed out that it has extensive experience in the inspirational format through its ownership of Gallo Record Company, which boasts over 200,000 songs on master tape.
“It is home to some of the biggest names in Gospel music and will support the growth of Vuma through its catalogue and industry expertise.”