European Media Group

European Media Group (EMG) is a non-state Russian broadcasting holding. EMG is a subsidiary of the Russian multidisciplinary holding Siberian Business Union. HC Siberian Business Union includes industrial and production enterprises, print media and radio stations, sports and health facilities.

Aktivs

The company's assets include radio stations (April 2014):

• Europe Plus,
• Retro FM,
• Seven Hill Radio 7,
• Keks FM (Moscow, St. Petersburg, Chelyabinsk)
• Radio Record (Moscow)
• Road radio
• Sports FM
• Radio for Friends
• Europe Plus TV

as well as sales house Media Plus, sells advertising on the radio and on the Internet (Avito.ru, Kinopoisk.ru, etc.)

Performance indicators

EMG format stations can be listened to in more than 2000 cities of Russia, Kazakhstan, Belarus, Kyrgyzstan, Latvia, Moldova and Ukraine. The weekly audience of the holding's stations in Russia is more than 33.6 million listeners. The holding provides 5,000 jobs in Russia and the CIS.

History

EMG was created on the basis of the Europe Plus radio station.

In the mid-1990s, the French Lagardere became a co-owner of EMG, and in 2004 acquired 100% of this company.

2020: Creation of the Association "Industrial Radio Player"

On October 26, 2020, it became known about the creation in Russia of an association called the Industrial Radio Player, which will become the operator of a single online player of the country's largest broadcasters. Read more here.

2011: Lagardere plans to sell EMG

November 16, 2011 - France's Lagardere leaves no attempt to get rid of its radio business. As it became known to RBC daily^[1], a tender for the sale of the European Media Group (EMG) was announced. So far, only Georges Polinsky, founder and president of EMG, has confirmed his participation in the competition. The asset was also offered to the owner of Business FM - metallurgist Vladimir Lisin. However, he is not satisfied with the price - at least $150 million is asked for EMG.

European Media Group is Lagardere's last asset in Russia. In June 2011, she sold to the American Hearst Corp. and Viktor Shkulev her 51% in the publishing group API-IMG (magazines Elle, Maxim, TV guide Antenna-Telesem, etc.).

According to top managers of large media holdings, the interests of the seller are represented by Societe Generale Bank. The asset itself is estimated at about $150 million. "The bank announced a tender, participation in it will cost at least $500 thousand," a source familiar with the situation explained.

According to RBC daily interlocutors, five players received the offer. So far, only one of them has confirmed its participation in the tender - the Zephyr company, behind which is the founder and president of EMG Georges Polinsky. "The asset is expensive, so Mr. Polinsky attracted VTB Bank as a partner," added a top manager of a major media holding. Georges Polinsky did not comment on this information.

The owner of the Novolipetsk Metallurgical Plant Vladimir Lisin, who is the owner of the United Media holding (Business FM, Radio Chocolate radio stations), was also offered to participate in the tender. "We received an offer, but the [financial] terms of the tender do not suit us, so we do not participate in it," a source close to the company commented.

More than a year ago, Ivan Tavrin's Choose Radio holding came out with an offer to buy EMG. It operates 56 regional radio stations, most of which are repeaters of stations in the group. However, now the company refused to participate in the tender "due to the discrepancy between the sellers' expectations of the real value of this asset," a source close to it said.

asset is strategic, so the deal will not go unnoticed by the state. It would be preferable for the buyer to have Russian roots, "says one of the interlocutors of RBC daily

In addition, in June 2011, amendments to the law on media entered into force. Since November 10, 2011, the founders of radio channels broadcasting throughout the country cannot be foreign legal entities or Russian legal entities in which foreign participation in the form of a share or contribution in the authorized capital exceeds 50%. These restrictions do not officially affect EMG's business - all radio channels belonging to the group are established by Russian legal entities. And only the European Media Group itself has foreign owners.

2012: Siberian Business Union buys EMG for $160 million

In 2012, the Siberian Business Union bought the European Media Group (EMG) for more than $160 million^[2].

2014: Purchase of "Road Radio"

In April 2014, it became known that the European Media Group closed the acquisition of Road Radio, for which it received permission from the FAS in early April. EMG acquired 100% of the authorized capital of the Center for New Technologies LLC, which manages Road Radio.

"Road Radio" is the most successful and original format in the radio market in recent years. In a short time, the station, created outside Moscow, became one of the leaders in terms of audience indicators, - commented on the deal, EMG President Ekaterina Tikhomirova. - "Road Radio" fits very organically into the pool of our radio stations, since it does not have format intersections with EMG stations. From a commercial point of view, the entry of Road Radio into the European Media Group will allow the radio station to participate in large transactions and advertising campaigns, respectively, we expect revenue growth significantly above the market. "

Road Radio is the second largest daily network in the country: more than 10 million people listen to the radio station, more than 23 million a week (data from TNS Russia, Radio Index). The radio station began broadcasting in 2003 in the city of Kirishi, Leningrad Region. Then the network began to develop actively - as of April 2014, it is present in more than 600 cities of Russia, including Moscow.

"The radio station in its format does not intersect with any EMG product, therefore it forms additional values ​ ​ for the total audience of EMG," said Andrei Danilov, general director of Center for New Technologies LLC. - Within the framework of a large holding, it is possible to consolidate the resources necessary for the further development of stations and strengthen market positions. We hope that joint efforts to develop the Road Radio radio station will lead to the desired results both in terms of audience growth and in terms of revenue growth

===* 2016:

The Federal Antimonopoly Service (FAS) approved in the spring of 2016 the purchase of 74.99% of the European Media Group by the structure of the Ural Mining and Metallurgical Company (UMMC). Siberian Business Union will remain the owner of 25.01% of EMG.

The application for the purchase of 74.99% of EMG was filed by Melody, whose legal address coincides with the address of UMMC. At the same time, as evidenced by the data of SPARK-Interfax, 60% of the company's shares belong to Igor Kudryashkin, 30% to Andrei Kozitsyn, 10% to Andrei Bokarev. The same persons are co-owners of UMMC.

In May 2016, it became known that the co-owner of the Ural Mining and Metallurgical Company (UMMC) Andrei Bokarev and its top managers Andrei Kozitsyn and Igor Kudryashkin acquired 74.55% of the shares of Russia's largest radio holding European Media Group (EMG). This was announced in an interview with Kommersant by the president of the company Ekaterina Tikhomirova^[3].

According to the interlocutor of the publication, close to the buyers, the controlling stake is now owned by Melody LLC from the Sverdlovsk Region, owned by UMMC shareholder Andrei Bokarev (10%), Andrei Kozitsyn (30%) and Igor Kudryashkin (60%). The deal has already been approved by the Federal Antimonopoly Service, he said.

As Tikhomirova explained, SDS Mediaholding, which was the sole owner of the company, retains a minority stake and will participate in the development of the business together with new shareholders. The parties did not disclose the amount of the transaction^[4].

Notes