Sky News Radio Plans Shelved
Global Radio has pulled out of a joint venture with BSkyB to launch a radio version of Sky News.
A deal was agreed between Sky and Chrysalis in March to rebrand London’s LBC News 1152 as Sky News Radio, however Global Radio, which acquired Chrysalis this summer, has decided not to go ahead with the plans.
Sky News Radio was to be launched in one of the slots on the second national digital radio multiplex, which will be launched in next year by 4DigitalGroup (see Channel 4 Consortium Wins Radio Multiplex Licence).
In a joint statement, the companies said: “Sky and Global Radio have confirmed that they do not intend to proceed with their proposed joint venture to launch a dedicated news radio service,” said Sky and Global in a statement.
“The decision has been made for commercial reasons and follows the takeover by Global Radio of Chrysalis. The joint venture was to have launched a news radio service on AM in London and nationally on the 4 Digital multiplex. “Sky, Global and other third parties are exploring alternative options to launch a Sky News Radio Service.”
The deal for the 24-hour news channel would have seen Sky produce the content while Chrysalis would have sold advertising.
Global Radio, chaired by former ITV CEO Charles Allen, bought Chrysalis for £170 million, with Chrysalis saying that it expected to make a £95 million profit on the deal (see Chrysalis Radio To Sell For £170 Million).
Global Radio: www.globalradiosales.com