GCap Media formally began trading this morning, following the merger of Capital Radio and GWR, creating a single broadcaster with combined airtime sales accounting for nearly 40% of the UK’s commercial radio market, based on total listening hours.
The High Court cleared the way for the two companies to merge at the end of last week, with GWR issuing a statement to the city explaining: “The High Court has made an order sanctioning the scheme of arrangement between GWR and the holders of Scheme Shares and confirming the related reduction of share capital of GWR.”
Some of the new company’s senior positions were announced in March, with group sales director at Capital Radio Group, John McGeough, being given the same role at the enlarged company.
Capital’s trading and operations director, Colette Lister, is also reported to be retaining her position after the merger, while Colin West, GWR’s financial controller, will continue his job for the group. Capital Radio’s director of communications, Jane Wilson, will take on the role for the new company.
GCap gave its new identity the first public airing as the sole sponsor on MediaTel’s RAJAR coverage last week, showcasing the group’s logo and hosting a microsite to present their take on the results for GCap stations.
The consolidation of GWR and Capital will give unprecedented market share to GCap Media, with combined airtime sales accounting for 36.72% of the UK’s commercial radio market, based on total listening hours.
However, the consolidation has not been made without sacrifice, with Capital Radio forced to dispose of 106 Century FM in order to appease competition watchdogs (see Capital To Sell Century FM).
The station’s sale to Chrysalis was confirmed by Capital this morning, with the broadcaster receiving a total of £29.5 million for the East Midlands station. Chrysalis is believed to be planning a rebrand for the station, rebadging it as Heart in order to mirror its 100.7 Heart FM in the West Midlands. The acquisition will mean that Heart’s total Midlands operations have a service area matching that of ITV’s Central region, making it attractive to local and national advertisers.
Commenting on the completion of the merger, Ralph Bernard, executive chairman of GCap Media, said: “This merger puts us in position to lead commercial radio in creating radio’s digital future. As digital listening grows GCap Media will be able to drive the growth of commercial radio’s share of listening and advertising by enhancing our services to listeners and providing greater opportunities for advertisers.”
He added: “Today’s announcement creates a vibrant new radio business with the increased scale and creative resources that will allow us to compete head on with the BBC.”
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