Sharewatch: GWR Falls As Commission Blocks Galaxy Deal
Week on week analysis of the media market shows that GWR saw the sector’s biggest decline, dropping 5.23% following news that the Competition Commission has blocked the group’s bid to buy Chrysalis Radio’s Galaxy 101 and merge it with Vibe FM (see Competition Commission Blocks GWR’s Acquisition Of Galaxy 101).
Elsewhere, beleaguered advertising group Cordiant remained in focus, down 2.63% week on week, following reports it is looking to extend its deal with French media giant Publicis, beyond the joint ownership of media buying company Zenith Optimedia.
Investors also considered news from across the Atlantic, where Steve Case stepped down as chairman of AOL Time Warner, reportedly admitting that the last two years had been “difficult and disappointing” for the group.
Looking ahead all eyes will be on Granada, which reports its first half results tomorrow, analysts are expecting flat ad revenues and a fall off in third quarter profits, as last year’s Q3 contained the World Cup. Lehman Brothers is forecasting a 7.3% decline in earnings before interest, tax and amortisation.
The closing prices of media company shares on Friday were:
