25 Apr 2007 07:00
25 April 2007
GCap Media plc
Acquisition of Classic Gold radio licences to create Classic Hits network
GCap Media today announces that it has agreed to acquire the 18 AM Classic Gold radio stations owned by Classic Gold Digital for a cash consideration of ‚£3.95 million.
GCap Media plans to merge Classic Gold with Capital Gold to create a single classic hits network. GCap Media already sells all the airtime on the Classic Gold stations and provides back office support including studio space, technology and inventory control. Bringing the two networks together will reduce operating costs, improving EBITA by ‚£0.8 million this year.
Ralph Bernard, Chief Executive of GCap Media, said: "Classic Gold is an integral part of our advertising proposition. Acquiring these stations will enable us to create a single classic hits network with the potential to become a fast-growing national brand as audiences increasingly migrate to digital platforms. We therefore welcome Ofcom's recent announcement that it is considering the conditions for a switch off date for AM, as this would greatly accelerate the uptake of DAB."
The acquisition, which includes relevant DAB digital licences held by Classic Gold, is subject to Ofcom approval.
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Notes to Editors
Classic Gold Digital acquired the Classic Gold licences from GCap Media in two separate transactions in 2000 and 2002. The total consideration of ‚£4.3 million, representing 100% of the aggregated purchase price, was paid by Classic Gold Digital partly in UBC shares and partly in cash/cash equivalent.
EnquiriesVicky CoelhoCorporate CommunicationsGCap Media plc020 7054 8128Don HunterFinsbury020 7251 3801
UBC MEDIA GROUP PLC