Guardian Media Group (GMG) is looking at the possibility of making a bid for Capital Radio, as part of plans to expand its radio interests. The move follows the breakdown of the group’s negotiations to buy out its joint venture associate, BC Partners, in the Autotrader publishing business.
GMG, which publishes the
Guardian and
Observer, reportedly allocated around £500 million to take control of Autotrader. It is thought that the money is now earmarked for the expansion of GMG’s radio business.
The company already owns the Real Radio stations in Scotland, South Wales and Yorkshire and acquired Jazz FM last year for £44.5 million (see Jazz FM Agrees To £44.5m Takeover By Guardian Media). AFX News this morning quoted a company spokesperson as saying that a bid for Capital is just one of possibilities being looked at under the group’s plans for the radio division.
GMG is just one of a number of radio groups hoping to take advantage of the relaxation of the media ownership regulations by the Communications Bill, which is due to become law later this year (see INSIGHTanalysis: Chrysalis Looks To Lead In Consolidating Radio Landscape). However, any consolidation within the sector will still face the scrutiny of the competition laws, which recently prevented GWR from buying Chrysalis Radio’s Galaxy 101 and merging it with Vibe FM (see GWR Sells Vibe Following Competition Rebuttal).
GMG is currently a relatively small player in the radio market and this could allow it to sidestep any major competition concerns.
