Sir Richard Branson is thought to be the favourite to buy Virgin Radio following yesterday’s decision by its owner SMG to float it on the stock market.
According to reports in the trade press, a brand rights ownership clause included in the deal which saw the station originally sold off from the Virgin Group could make it difficult for other interested parties to make a bid.
SMG said yesterday that it would seek to float Virgin Radio as it wishes to concentrate on its core TV business (see SMG To Float Virgin Radio).
Virgin Group sold Virgin Radio to Chris Evans for £85 million in 1997 and it is believed that SMG is seeking to make £105 million if it sells Virgin Radio.
SMG also announced its full year results for 2006 yesterday, revealing that its pre-tax profits were £10 million, a decline of 50% from 2005, whilst revenues were down 8% on 2005 (see SMG Announces Full Year Results).
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