Capital Radio Chief Moves To Quash Clear Channel Takeover
Capital Radio boss, David Mansfield, has moved to rule out a potential takeover by American-owned Clear Channel following the relaxation of the media ownership regulations (see Draft Communications Bill Relaxes Cross Media Rules).
Lowry Mays, chief executive of Clear Channel, has made no secret of his intention to acquire a major UK radio group once the Communications Bill comes into force (see US Radio Group Could Move On UK Commercial Stations) and speculation has identified Capital as the most likely target. However, Mansfield today warned there would be a “major clash” if the world’s largest radio operator tried to swoop on Capital.
Speaking at this year’s Radio Festival in Birmingham, Mansfield claimed “fundamental cultural differences” would stand in the way of any potential merger between the two radio groups. He argued that Clear Channel was in the business of selling hamburgers and Fords, whilst Capital was focused on providing the best possible service to its listeners.
He emphasised that consolidation in the newly deregulated radio landscape would take longer than anticipated following the Government’s decision to give Ofcom the power to investigate major cross media mergers (see Government Ends Media Ownership Deadlock), saying “There will be some consolidation, but it will not come as quickly as everyone thinks. There are a number of new hurdles to overcome.”
GWR’s chief executive, Ralph Bernard, who was also addressing delegates at the annual event, said there was nothing “overtly wrong” with the American ownership of UK broadcasting assets. However, he pointed out that Clear Channel’s approach to radio, as a vehicle for selling products for advertisers, was one which simply would not be permitted in the UK.
Capital Radio: 020 7766 6000 www.capitalradiogroup.co.uk
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