US Radio Group Could Move On UK Commercial Stations
The chief executive of US-owned Clear Channel Worldwide, the world’s biggest radio group, has admitted that he would like to take over one of the UK major commercial radio groups.
Speaking at the Radio Festival’s Guardian Media Group lecture last night, Lowry Mays said: “If regulation allowed, nothing would give me greater pleasure than to bring one of the UK’s leading commercial radio networks into the Clear Channel family.”
He emphasised that a stake in the British commercial radio market would compliment Clear Channel’s existing UK outdoor advertising interests, but emphasised that there would be no “hostile takeovers”.
Mays, whose company controls 1,250 radio stations in the US, also said that consolidation is the only way forward for the UK’s fragmented commercial radio sector, claiming that stifling media ownership regulations are preventing UK radio groups from serving the advertising community.
According to Mays, the establishment of larger radio groups would lead to a healthier commercial market, with better investment and higher quality programming. He said: “The radio industry needs to grow in order to better serve the advertising community and the only to deliver this is to allow consolidation to work its magic.”
Mays praised the Government’s recently published draft Communications Bill, which clears the way for non-European investors to buy into the UK commercial radio market, saying: “The Draft Bill is very positive for those who believe in deregulation. It represents a great first step towards consolidation.”
However, he warned of the dangers of new super-regulator Ofcom becoming too powerful and called on the Government to trust the commercial sector by adopting a light-touch approach to regulation.
Consolidation looks set to become a very real possibility when the Communications Bill becomes legislation next year and rumours are already circulating that some of the UK’s largest commercial radio groups are looking at prospective mergers.
Clear Channel International: www.clearchannel.com
Recent Radio Stories from NewsLine £99 “Kitchen” Digital Radio To Go On Sale UK Radio Groups Come Together For Six-Figure Ad Deal Capital’s New Controller Makes Breakfast Appointment
Subscribers can access ten years of NewsLine articles by clicking the Search button to the left