GCap Sells Radio Stations To Guardian Media Group
GCap Media has sold its two Manchester and Gateshead Century FM stations to Guardian Media Group for £60 million.
The acquisition, which puts the chief executive of GMG Radio, John Myers, back in charge of the station he launched in 1994, gives GMG Radio coverage across the north east and north west of England.
GCap will continue to handle national agency sales for the two stations, as well as regional agency sales, apart from in the north east, for at least the next five years.
GCap said its motive was to achieve “greater financial flexibility” in order to focus on its national portfolio of stations and the launch of its national digital jazz station (see GCap Launches UK’s First National Jazz Station On DAB).
Ralph Bernard, chief executive of GCap, said: “This deal not only allows us significantly to reduce our debt levels but will also provide us with the financial flexibility to continue to invest in priority areas of the business.
“The negotiations with GMG have been conducted in an excellent spirit and both parties believe there are partnership opportunities for our respective businesses in the future.”
Manchester 105.4 Century FM has a market share of 5.5% while the North East’s 100-102 Century FM has a market share of 10.9%. Adult weekly reach for 100-102 Century FM North was 303,000 for the quarter ending June 2006, whilst 105.4 Century FM recorded a weekly reach of 751,000. Quarter three RAJAR figures are released next Thursday, with NewsLine providing full analysis of the data.
GMG already owns Real Radio stations in Scotland, Wales and Yorkshire, two Smooth FM stations in the north west and London and is a stakeholder in the digital radio multiplex operator MXR. The Century stations are similar in content format to the Real Radio network.
Carolyn McCall, chief executive of GMG, said: “These are great assets and are a perfect match for our existing radio portfolio. The purchase supports our wider group strategy of expanding our radio operations through licence applications and acquisitions, together with diversifying our overall group media portfolio.”