Wireless Group To Invest In Offshore Rival To Radio 2

The Wireless Group (TWG) announced yesterday that it is in negotiations with an offshore radio group, Delta Radio, to acquire a 33% stake in the company. The principle asset of Delta is a new national analogue station which would be recieved in the UK. It is thought that the new station, which would play easy listening and melodic songs by artists such as Frank Sinatra, Simply Red, The Carpenters, Gabrielle and Neil Diamond, could take on Radio 2 in the listener stakes.

Kelvin MacKenzie, chairman and chief executive of TWG, said: “Creating a new offshore radio station is an exciting and innovative way to increase our national presence. TalkSPORT has proved adept at targeting young men, giving advertisers access to a specific demographic group. The Lounge will give our national sales team a complementary sell; offering advertisers access to an older audience as well as to women.”

The service, which is to be called 171 The Lounge, will begin broadcasting in 2002 on a recently released long wave frequency which could reach an audience of up to 40 million in the UK. The licence comes from the Dutch government, and transmission facilities would be built off the Dutch coast near Zeeland. Although the station would not be regulated under UK law, TWG has said that it would ensure UK copyright and broadcast codes were adhered to, as well as ASA compliance.

The agreement will see TWG take on the management of the station’s programming and advertising sales. Funding of the station will be taken on by other shareholders, and it is expected to break even within three years.

Yesterday, shares in The Wireless Group ended 1p up at £2.08½.

The Wireless Group: 020 7959 7800

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