Capital Radio Acquires Red Dragon Radio

Capital Radio has announced that it has acquired from EMAP Radio the entire issued share capital of Cardiff-based Red Dragon FM for £18.25 million. This is Capital’s second buyout in under a week, following hot on the heels of a takeover bid for London’s Xfm (see Capital’s Xfm Move Dependent On Watchdogs).

Trading under the name of Red Dragon, the station is actually the enterprise of Cardiff Broadcasting Company Ltd (CBC) and it is this company which Capital has bought from EMAP. This means that Capital will now also own CBC’s other station Touch AM which broadcasts across South Wales.

Both stations’ weekly reach has been declining since 1996 according to RAJAR data. Share of listening for both stations was also down quarter on quarter in the latest RAJAR figures.

Red Dragon qualifies for 5 points in the Radio Authority’s ownership system and, together with the planned acquisition of Xfm, will take Capital Radio’s total ownership from 65 points (8.6%) to 85 points (11.2%) out of a possible 115 (15%). In the light of this Capital is planning further expansion across the country.

The sale of CBC by EMAP has been undertaken so that EMAP Radio’s total interests are not large enough to prevent its proposed buyout of Melody Radio from being accepted by the Radio Authority (see Emap Expects To Improve Melody’s Financial Performance).

Commenting on the disposal, Tim Schoonmaker, chief executive of EMAP Radio, says: “Although it is geographically distant from our main radio regions, it is with some sadness that we sell Red Dragon. Since its acquisition four years ago, Red Dragon has substantially improved its profitability and has developed a good reputation in its local market. Red Dragon will continue to have a parent who is a long-standing local radio operator and we wish the station well.”

Red Dragon and Touch AM will both become part of the Capital Group under the management of Sally Oldham. National sales will be brought into Capital Advertising to be sold alongside the group’s other stations.

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Capital Radio: 0171 766 6000 EMAP Radio: 0171 504 6000