Global Radio seeks solution after CC upholds GMG Radio ruling

Global Radio is in discussions with the Competition Commission, after the competition authority upheld its provisional ruling that Global's £70m merger with GMG Radio could lead to higher ad prices.

Charles Allen: chairman of Global Radio
Charles Allen: chairman of Global Radio

The CC found that in the seven areas where Global Radio and Real & Smooth ltd (as GMG Radio is now known) overlap, advertisers buying spots in the £60m market for non-contracted airtime and sponsorship would face higher prices.

Global Radio will now be required to sell some of the acquired Real & Smooth stations, or its own stations, in the following areas – the East Midlands; Cardiff; North Wales; Greater Manchester and the North-West; the North-East; the south and west of Yorkshire, and central Scotland.

The CC will have to approve the buyers to ensure they will be viable competitors to Global Radio.

In February, Media Week revealed that the CC was expected to partially reject the deal, due to competition issues in the North and Wales.

Advertisers' trade body ISBA broadly welcomed the decision after it expressed concerns in its submission to the CC that the deal would lead to excessive media ownership concentration.

Bob Wootton, the director of media and advertising at ISBA, said: "The CC's insistence on the sale of stations in seven regions won't be popular with Global, but it will go a long way in reassuring advertisers who buy commercial spots, and pay for sponsorship and promotional airtime. Especially the smaller and more local ones that may perhaps not be able to look after themselves so well."

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up

Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up

Waitrose has joined forces with Channel 4 and produced a Saturday morning lifestyle and cookery programme called 'Weekend Kitchen with Waitrose', with TV presenters Lisa Snowdon and Steve Jones signed up to front it.

Share
Newspaper ABCs: Guardian smashes through 100m browsers in March 2014

Newspaper ABCs: Guardian smashes through 100m browsers in March 2014

The Guardian reached more than 100 million monthly unique browsers for the first time in March, according to Audit Bureau of Circulations figures published today.

Share
Toyota achieves the impossible by calming angry Roman drivers

Toyota achieves the impossible by calming angry Roman drivers

Italians swearing and shouting while sitting behind the wheels of their cars and negotiating the busy streets of Rome could become a thing of the past if they all start driving Toyota's Hybrid vehicles, implies a short film for the car brand.

Share

Get news by email