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Tuesday, 28 September 2004 |
 Capital Radio and GWR have formally announced this morning they have agreed an all-share merger to create the UK’s biggest commercial radio group.
Under the proposed deal, the groups would have a market value of more than £700m and a combined reach of 18m listeners. They would own a total of 56 analogue stations and 93 digital radio stations. Stations would include national station Classic FM and London stations 95.8 Capital FM, XFM and newly acquired Choice FM.
The 52% Capital / 48% GWR merger is espected to have a combined turnover of £243m and will represent a 36% share of the commercial radio audience but 40% of the ad market.
Capital and GWR say the merged group would have three strategic goals:
1. To accelerate the future growth of commercial radio’s overall share of UK radio listening
2. Accelerate commercial radio’s share of display advertising and the group’s own share
3. Grow non-traditional revenues through the relationship with listeners
Emap, the next biggest commercial radio group after Capital and GWR, are already expressing an interest in upping its 27% stake in Scottish Radio Holdings by taking full control of the £320m company.
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