Desmond Reported To Be Considering Virgin Radio Bid
Richard Desmond, owner of Express Newspapers, is believed to be considering a bid for Scottish Media Group’s Virgin Radio.
According to a report in yesterday’s Observer, Desmond, who has made no secret of his plans to expand his media interests, has discussed a plan to buy the commercial radio station at board level. However, it is understood that the plan is still being fleshed out, implying that the tabling of the bid is not imminent.
Speculation suggests that Desmond, who recently launched the Daily Star Sunday (see NewsLine Feature: Sunday Star Hopes To Shine), lacks the financial muscle to purchase the radio station, which analysts have valued at more than £150 million.
It is also likely that SMG would be unwilling to part with Virgin Radio, which is widely regarded as the jewel in its crown. However, the group has accumulated a sizeable debt burden and is preparing to sell its newspaper and magazine publishing business in order to concentrate on its core operations (see SMG To Sell Publishing And Online Business). Analysts believe that a full break-up of the company, which also includes the Scottish and Grampian ITV stations and cinema advertising business Pearl & Dean, could be a possibility.
Virgin Radio has also had a number of high profile problems, which reached their peak last June when DJ and shareholder Chris Evans was sacked after failing to turn up for his breakfast show for five consecutive days (see Virgin Terminates Evans’ Contract).
According to RAJAR data for the second quarter of 2002, total Virgin Radio, which includes Virgin FM London and Virgin Radio AM, saw its weekly reach decline by 13.3% year on year to 3,106,000, down from 3,581,000 in the same period the previous year.
Northern & Shell: 020 7308 5090 SMG: 0141 300 3000 www.scottishmediagroup.com
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