So it been finally confirmed that GCap Chief Executive Fru Hazlitt and Chairman Richard Eyre are to leave the company on the 6th June as the Global Radio takeover officially goes through. What’s quite interesting is that as the existing Global Radio and GCap have to be ‘held separate’ due to an edict from the OFT, it turns out that Global’s Chief Exec Ashley Tabor and Chairman Charles Allen are going to quit running Global Radio and take over the top two roles at GCap. Still with me, readers?
Now, whilst this sounds a little odd, in business terms it very sensible. The ex-Chrysalis stations of the existing Global Radio will carry on with the plans put in place by Ashley, no doubt under the tutelage of Richard Park whilst the top two move to the bigger problem – that of what to do with GCap.
Sorry anoraks, but I imagine on the top of their agenda will be advertisting. Mergers/takeovers can usually be bad news for national sales departments as both companies are likely to have a complete duplication of staff on both sides. This is, unsurprisingly, quite unsettling for sales teams who start to spend a bit more time trying to find a new job than they do selling a new campaign, which can have a catastrophic effect on revenue. Stemming this and keeping advertisers happy will be the important thing to sort out first.
Meanwhile, Fru got to spend six months running the largest radio group, sell, not sell and then sell again some XFM stations, shut (and nearly shut down) theJazz and Planet Rock, buy an internet company, not fix Capital, preside over audience declines, improve the websites, not save the company and then sell off the company. According to Richard Eyre “The leadership Fru has provided for this company in the most testing of circumstances has been exceptional. She has exceeded the high expectations of the board.”
So has Fru been good or bad for GCap?