Chrysalis Strengthens London Offering With LNR Acquisition
Chrysalis Radio has announced the acquisition of London News Radio (LNR) from rival GWR Group for £23.5 million.
The acquisition of LNR, which encompasses the LBC and NewsDirect radio brands, will strengthen Chrysalis’ position in the key London market and according to the radio group, will increase its share in the capital from 10.4% to 15.9%.
Chrysalis, which is currently outperforming the radio sector in terms of advertising revenue (see Chrysalis Revenues 15%pt Stronger Than Radio Sector), plans to relaunch talk radio station, LBC, on the more popular FM waveband and is to transfer rolling news service, NewsDirect, to the AM frequency.
Commenting on the acquisition, Phil Riley, Chrysalis Radio’s chief executive, said: “The ability to effectively re-launch LBC on FM will provide us with an radio landscape to our benefit, giving London’s listeners more quality radio programming, and offering advertisers a greater ability to reach London’s upmarket speech radio listeners.”
Richard Huntingford, chief executive of the Chrysalis Group, added: “The acquisition of LNR’s two London licences for a realistic price gives us an opportunity to create added value for our shareholders. Our enhanced strength in the key London market will ensure that we are in pole position to maximise the opportunities presented by the new Communications Act.”
According to RAJAR data for the second quarter of 2002, total London News Radio has seen its weekly reach decline by 6.6% year on year to 792,000, down from 740,000 in the same period the previous year. Analysis of RAJAR data for the last five years reveals a more unsettled picture, with the combined weekly reach of LBC and NewsDirect fluctuating between 650,000, and 950,000 (see below).
In a separate move, Chrysalis has agreed to sell Galaxy 101 to Vibe Radio Services for £12.5 million. Vibe Radio Services is a joint venture between Scottish Radio Holdings (51%) and GWR (49%). The acquisition of Galaxy 101 will strengthen the group’s existing offering, which includes classic and contemporary dance music station Vibe FM.
Chrysalis: 020 7221 2213 www.chrysalis.com GWR Group: 020 7284 3000 www.gwrgroup.com
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