Metromedia International Inc. Acquires Two Radio Networks in Finland
NEW YORK--(BUSINESS WIRE)--February 20, 2001--Metromedia International Group, Inc. (AMEX:MMG), which through Metromedia International Telecommunications, Inc. (MITI), is the owner of various interests in communications joint ventures in Central and Eastern Europe, the former Soviet Union and other markets, today announced the acquisition of a controlling interest in OY P4 Finland AB, a company operating two radio networks in the Republic of Finland.
Metromedia International Group, through its wholly owned subsidiary Metromedia International Inc., entered into an agreement in November 2000 to acquire 90% of the share capital of P4 Finland AB from current shareholders including P4 International AS, a Norwegian corporation, and MTG Radio AB, a Swedish corporation. Completion of the transaction was conditioned upon reconfirmation of the broadcasting licenses from the Council of State of the Republic of Finland, among other customary matters.
On February 8th, the Council of State of Finland reconfirmed the 15 existing licenses operated by P4 Finland and awarded the company 4 additional frequencies, extending the reach of the radio networks to more than 80% of the country's population.
P4 Finland AB, which after the transaction will be renamed Metromedia Finland AB, operates two regional radio networks on 15 FM frequencies (to be expanded to a total of 19 frequencies). The first network, operating under the program name of Star FM, broadcasts via 10 transmitters to an area covering over 70% of the population of Finland. The second network, broadcasting under the name Groove FM, reaches a potential audience of about 50% of the population. After the entry into operation of the newly awarded frequencies, the reach of the two networks will be 80% and 65% of the population of Finland, respectively.
During the reconfirmation of the licenses, Metromedia International Inc. obtained permission from the government to change the programming of one of the two radio networks to a format of 100% local-language pop and rock music - a format which is not present in the Helsinki and national radio markets but has proven successful in other countries where Metromedia International operates radio stations. Metromedia International has already changed the format of the station and plans to re-launch the radio network under a new brand name before the end of March 2001.
Metromedia International also plans to launch a multimedia entertainment-oriented Internet portal in Finnish, as part of its strategy to develop general entertainment Internet portals in all markets where it owns radio stations. Metromedia International has already launched an interactive radio website in Finland, www.minunradioni.com, which allows visitors to select the song they can hear on the FM network operated by Star FM.
Carl Brazell, President of MITI, said: `In Finland, we have the opportunity not only to create market leaders on the basis of the excellent technical and coverage infrastructure of the two FM networks we are acquiring, but also to integrate these two radio stations with our Internet portal network, in a country with one of the highest Internet penetration rates in the world.' Metromedia International Group, Inc. is a global communications and media company. Through its wholly owned subsidiaries and its joint ventures, the Company owns and operates communications and media businesses in Central and Eastern Europe, the republics of the former Soviet Union and other markets. These include a variety of telephony businesses including cellular operators; providers of local, long distance and international services over fiber-optic and satellite-based networks, international toll calling and fixed wireless local loop; wireless and wired cable television networks and broadband networks; and FM radio stations.
involve risks and uncertainties. Factors that could cause or contribute to such risks and uncertainties include, but are not limited to, general economic and business conditions, competition, changes in technology and methods of marketing, and various other factors beyond the Company's control. This also includes such factors as are described from time to time in the SEC reports filed by Metromedia International Group, Inc., including its most recently filed Forms 10-K and 10-Q. |
