Global deal ‘bad for commercial radio’ say rivals
Following Global Radio’s takeover of GMG Radio, concerned competitors have demanded a regulatory review, with the hope of blocking yesterday’s estimated £70 million deal.
It is being argued that the takeover will result in Ashley Tabor’s GMG Radio holding over 50% of the radio advertising and sponsorship market in the UK, which is worth £450 million.
A spokesperson for UTV Media, whose sub-division UTV Radio operates talkSPORT, said: “A combined Global and GMG Radio spells bad news for commercial radio.”
Pointing towards the combined market share of GMG Radio and Global Radio of up to 61% in Cardiff and 58% in Birmingham, a statement from Absolute Radio affirmed that the group “opposes the proposed sale in its current form”.
It has been rumoured that UTV Media and Bauer Radio both made unsuccessful bids to take control of GMG Radio.
TalkSPORT chief executive Scott Taunton added: “This merger would leave the enlarged Global Radio controlling more than 50% of commercial radio revenues, and more than 50% of listening in key markets like London and Manchester.
“The competition authorities should see this for what it is, an attempt to achieve an unassailable position of market dominance. Simply put, the proposed merger must not go ahead.”
Donnach O’Driscoll, chief executive of Absolute Radio, expressed his opinion to the Guardian that under competition law, in the commercial television market such a deal would not be permitted.
Bauer Media also offered the following comment: “Bauer Media believes the merger of Global and GMG Radio will be fully investigated by the competition authorities, as this combination will increase the dominant market position that Global already has in local and national markets and permanently lessen choice for radio advertisers.”
A spokesperson for the Office of Fair Trading (OFT) stated that a public investigation is yet to get underway, but parties will be invited to comment prior to a 40 working day period in which it will be decided whether there are any legitimate issues regarding competition as a result of the sale.
To read the full Guardian article click here, while the Mediaweek story is available here.