John Steele is getting out of the radio business after a massive $500-million purchase of Newcap Radio by Montreal-based Stingray Digital Media Group, headed by CEO Eric Boyko.
All the radio assets of Newfoundland Capital Corp. across the country were purchased by Stingray in a deal that still has to be approved by the Canadian Radio-Television and Telecommunications Commission (CRTC).
The deal means new ownership for VOCM, K-Rock, Hits-FM, KIXX Country, Big Land FM and other radio properties owned by the Steele family business. Steele Communications purchased VOCM radio and its assets in May 2000.
Steele says it’s the end of an era.
“For me, personally, it’s an end of a chapter, but the beginning of a new one. There’s lots of challenges, lots of opportunities out there. I’ll find something to do,” Steele said Wednesday.
He said he will now focus on his Steele Hotels, as he’s out of the radio business in Newfoundland and Labrador.
Steele says there was no one moment that triggered the deal.
“My brother Rob has been on the board of Stingray for five or six years. We’ve personally known Eric Boyko for about 10 years,” Steele said.
“They’ve been interested in radio. They like how Newcap is run. It just came together over time.”
Newfoundland Capital Corp., the parent company of Steele Communications, will now be merged into the existing operations of Stingray.
The deal gives Stingray 72 radio stations across the country. The company, which focuses on digital music streaming and ambient music for businesses such as ALDO, is entering the radio business for the first time with the purchase.
Before the deal, Stingray saw annual revenue of $120 million. The company estimates that will grow to $290 million annually with the purchase of Newcap.
Stingray currently employs 400 people across the country and overseas. Should the deal be approved by the CRTC, that will grow to 1,200.
Steele Communications had made some changes to its Newfoundland and Labrador operations in recent years.
VOCM radio stations in Gander, Grand Falls-Windsor, Marystown and Stephenville that were once staffed by reporters and management now either take radio feeds from other parts of the province or are focused on ad sales in their respective regions.
As for whether any staffing changes are coming to the former Newcap stations, Steele says he hasn’t heard anything.
“I can’t speak for Stingray on that,” he said.
Stingray representatives did not return a request for comment by deadline on Wednesday.
Twitter: DavidMaherNL
