Global pulls back from GCap
Reports suggest Global Radio will not be making a third offer for GCap Media, after being rejected twice on the grounds that the amount offered significantly undervalued the company. Last week's offer of 202 pence per share is thought to be Global's last before the deadline of March 5th.
The Guardian reports that Global [i]has no desire to overpay for GCap and will wait to see whether new chief executive Fru Hazlitt's turnaround strategy of slashing costs, ditching digital radio stations and revamping advertising slots pays off over the coming months.[/i]
The rejection could now signal the commencement of the axing of digital brands Planet Rock and theJazz, plus the closure or sale of the Xfm network. In what can only be described as wholesale DAB cleansing [leaving only Classic FM on the national platform], GCap is also bailing out as co-owners Digital One, leaving Arqiva to work out if it has a deal or a dog.
Global will have to wait for six months (after March 5th) before making another offer for the radio giant.