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Lachlan Murdoch (R) and his wife Sarah - Source: Reuters
Lachlan Murdoch's private investment company, Illyria, will acquire 50% of DMG Radio Australia after what he describes as an exhaustive search for the right transaction.
Murdoch will become chairman of a new joint venture company overseeing the operation, DMG Radio Australia's parent company Daily Mail and General Trust plc (DMGT) said in a statement on Thursday.
Murdoch said he hoped to explore new growth opportunities within the business and also in related media.
"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.
"The skills we have in-house at Illyria will complement the strengths of DMG Radio Australia."
DMG Radio Australia owns the Nova FM radio stations in Sydney, Melbourne, Brisbane, Adelaide and Perth and the Vega FM stations in Sydney and Melbourne.
DMG Radio Australia chief executive Cathy O'Connor described the new joint venture as "an exciting step forward".
"DMG Radio Australia is well positioned for further growth and can extend its brands in both broadcast radio and related media," O'Connor said.
"Working with an experienced and committed Australian owner in Illyria will increase our opportunities to achieve that growth."
The chairman of DMGT, Lord Rothermere, said he was thrilled to welcome Illyria as a partner.
"I am excited by the potential that their expertise and focus will bring to an already successful management team," he said.
The terms of the deal were not disclosed.
Through Illyria, Murdoch has made investments in regional
television group Prime Media, toy group Funtastic and a team in the
Indian Premier League cricket tournament.
Murdoch sits on the board of global media company News Corporation,
where his father Rupert Murdoch is chairman and chief
executive.
