Global Radio and Sky have scrapped a joint venture to turn LBC 1152 into a 24 hour Sky News branded station. The plans, agreed between Sky and Chrysalis before Global took over the company, also included launching a national service via the 4 Digital multiplex next year.
Instead, Sky will look for an alternative radio partner to help operate the Sky News Radio service nationally.
In a statement, Sky and Global said: "The decision has been made for commercial reasons and follows the takeover by Global Radio of Chrysalis. Sky, Global and other third parties are exploring alternative options to launch a Sky News Radio Service."
A spokesman for Ashley Tabor, Global’s CEO said that having looked at the contract it was commercially unattractive, and Global was not prepared to make the necessary investment in this project.”