Global Radio tables £50m bid for GMG Radio
Global Radio, the commercial radio operator behind Capital, Heart and Classic FM, is thought to have submitted a £50m bid for the Guardian Media Groups radio operations – which includes the Real Radio and Smooth Radio brands.
The prediction has been made by the guardian, itself published by GMG, on the grounds that Global is the UKs largest commercial operator and thus their bid was likely to have been the largest on offer – despite GMG Radio not even being officially for sale.
Global already handles the national advertising contract for GMG enabling them to make cost savings.
GMG Radio was valued at £118.9m in its most recent set of accounts, filed in March last year, but this is likely to be subject to a significant writedown for this years accounts.
The broadcaster recorded a 6% fall in year on year profits to £47.1m in the 12 months to the end of March, notching up a pre-tax loss of £4.1m.
Performance this year is thought to have somewhat improved however.