Chrysalis Confirms Speculation Over GMG Purchase

Chrysalis Radio has this morning confirmed speculation surrounding a bid for rival broadcaster, Guardian Media Group, stating that it had held preliminary discussions and was considering its next move.

In a statement to the City, Chrysalis Group recognised the recent speculation surrounding a possible purchase of GMG, and confirmed that, following preliminary discussions, it is considering making a formal offer for the firm’s radio assets. However, the company was quick to quell speculation of a definite bid, stating: “There can be no certainty that a transaction will be forthcoming.”

The company went on to explain that the move would be in line with its stated strategy to review acquisition opportunities in the radio sector. A purchase of GMG’s assets, the statement added, would be “complementary” to its existing radio business and could provide an opportunity for long term shareholder value.

The rumours surrounding Chrysalis’ interest in GMG have circulated for a while. However, last year Chrysalis’ chief executive, Richard Huntingford, stated that the prospect of increased consolidation in the radio sector should not put pressure on companies to merge as a “knee-jerk” reaction (see Chrysalis Not Pressured By Capital GWR Merger).

The radio boss stated that the increased focus on consolidation, particularly the forthcoming merger of Capital and GWR, does not make him feel pressured into following the same route with Chrysalis. Capital and GWR, meanwhile, look set to complete their consolidation in May, having announced the finalised name for the company, Gcap Media, last week (see Capital And GWR Name Merged Group).

Chrysalis: 020 7221 2213 www.chrysalis.com

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