Daily Mail Fails In Its Bid To Take To The Air Waves

The Radio Authority has vetoed the proposed acquisition of GWR’s Leicester Sound by DMG Radio, a subsidiary of Daily Mail and General Trust plc *RA Carries Out Public Interest Tests. If the sale were to proceed Leicester Sound would lose its licence. The Radio Authority ruled that in these circumstances Leicester Sound would be operating against the public interest.

This is the first time that the Authority has vetoed a cross-media ownership acquisition since the 1996 Broadcasting Act came into effect. The Act was intended to relax media ownership restrictions.

DMGT owns Associated Newspapers, publishers of the Daily Mail and the Mail on Sunday. The group also owns Northcliffe Newspapers, a publisher of local newspapers, whose titles include the Leicester Mercury and several free weekly papers distributed in the Leicester area. If the sale was to proceed, the most significant independent local radio station and the largest local newspaper group operating in the area would be under common ownership.

The Radio Authority ruled that such a situation would lead to a reduction in the diversity of information and opinion sources breach of the 1996 Broadcasting Act.

Daily Mail and General Trust plc issued the following statement in response:

“DMGT is disappointed to learn of the decision by the Radio Authority that it should not be permitted to acquire an 80% interest in Leicester Sound Limited from GWR plc. As a result, the proposed combined acquisition of this and up to 11% of London News Radio from GWR will not now take place.”

GWR has now decided that Leicester Sound is no longer for sale.

DMGT: 0171 938 6000 Radio Authority: 0171 405 7058 GWR: 01793 422 700