Radio shake-up imminent after GMG sale
GMG Radio, a division of the Guardian Media Group (GMG), has been sold to Global Radio for an undisclosed figure, believed to be around the £50 million mark.
The deal was announced this morning and is likely to result in Real Radio becoming Heart throughout northern England, Scotland and Wales.
A regulatory review into the purchase is due to take place, which will see GMG Radio carry on operating separately from Global Radio in the meantime. Global Radio will continue to represent the national airtime sales of GMG Radio, which it has done since 2006.
CEO of GMG Radio, Stuart Taylor, will depart with immediate effect following the sale. Mark Lee, who is currently Global Radio’s MD for the aforementioned regions, is set to be seconded to GMG Radio with immediate effect to take on the position of CEO.
Following the conclusion of the acquisition, Ashley Tabor, founder and executive president of Global Group, said: “We are pleased to have concluded this deal, and once the required approvals have been received, we will look forward to welcoming the GMG radio stations into the Global family.
“We believe that this is a very strong business with brands and assets that are highly complementary to those of Global Radio.”
Andrew Miller, CEO of GMG, added: “Our portfolio of investments that lie outside our core national newspaper business exist to underpin the long-term financial and editorial integrity of the Guardian. If we believe that best value for the Group lies in the disposal of a non-core asset, then we will do so.
“The talented team at GMG Radio have been very successful in building strong brands, which have been attractive to listeners and advertisers and have attracted considerable external interest. We believe that this transaction gives the business an excellent opportunity to develop and flourish as part of Global Radio.
“I would like to thank everyone at GMG Radio for their outstanding achievements over the last few years and wish them every success for the future.”
Many jobs are feared to be at risk in GMG, an employer of hundreds of people across mainland Britain. GMG Radio was valued at £118.9 million back in March 2011, and saw a dip in revenue of 6.0% in the year to 3 April 2011.
The group is believed to be worth around £120 million now.
For a timeline of the history of GMG Radio, click here.