Sharewatch: SMG Boosted By Scottish Radio Sell-Off

One of the strongest performances in last week’s media market came from SMG, which rose 6.33% week on week after selling its 27.8% stake in Scottish Radio Holdings to Emap for £90.5 million. The deal will allow SMG to reduce its mounting debt burden and is expect kick off the long awaited consolidation of the radio industry (see SMG Sells Radio Stake To Reduce Mounting Debts).

Wireless Group was also seen in focus with shares climbing by 2.84% after strengthening its position in the UK local radio market with the acquisition of Forever Broadcasting for £8.1 million. The company also announced its intention increase its interest in DRG, owner of the London III digital multiplex licence (see Wireless Group Secures Forever For £8.1 Million).

Meanwhile, profit takers left their mark on the media sector after the IPA’s latest Bellwether report predicted that the coming months could see adspend climb to levels not seen since the height of the dotcom boom. Granada was seen down by 6.65% in week on week analysis and Emap dipped by 3.32% to close at 904p (see Bellwether Reveals Increasing Optimism For Advertisers).

The closing prices of media company shares on Friday were: