They’ve been after a new radio group for ages and finally they’ve found got one. Global Radio’s offer has been endorsed by the Directors of GCap Media and recommended to the other shareholders.
What does this mean? Well if the shareholders accept it (which they are very likely to do) Global will be the new owners probably sometime in June. However they won’t be able to control the company directly until the OFT/Competition Commission agree the acquisition. This could take three months from now to be agreed which would mean they’re not properly in charge until July/August.
Does this mean GCap will continue with Fru’s ‘strategy‘ in the meantime? Unlikely. Global are likely to have put a halt to most of the major transactions. I think it’s safe to say Capital Life and theJazz will cease tonight, whilst the regional XFMs and Digital One are likely to stay in the group. Planet Rock’s a bit more interesting. I believe there’s a number of parties who would still like to buy it, but will Global keep it? To be honest, I think it’s unlikely, they’ve got enough brands to be getting on with and probably will like another paying tenant on Digital One.
More Global thoughts here.