Absolute Radio has been selected as the preferred bidder to acquire Virgin Radio from Scottish media group SMG.
According to a report in today’s
Daily Telegraph, Absolute is believed to have made a cash offer and will enter talks with Sir Richard Branson’s Virgin Group, which must approve the deal and the continued licensing of the Virgin brand name.
The report added that Absolute, which specialises in investing in the radio sector and also acts as a consultancy for radio companies, has been chosen over UTV, owner of the Ulster ITV franchise and radio station TalkSport.
The price offered by Absolute is at the lower end of the £60 million-£70 million range that SMG had been looking for, and far less than the £255 million SMG paid for the station and a television production company eight years ago.
Absolute Radio is believed to be being financially backed by Bennett, Coleman & Co, one of India’s largest media groups.
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