GMG sells off radio business

GUARDIAN Media Group has sold off its radio business – including the Real Radio and Smooth brands – to Global Radio.

The sale, for an undisclosed sum, has led to the immediate departure of GMG Radio’s former chief executive, Stuart Taylor.

Although Global said the business will continue to be run separately from its core business while a regulatory review takes place, Global will continue to run its national sales network (which it has done since 2006). Global’s regional MD, Mark Lee, has also been seconded from Global to run the business.

GMG Radio was set up in 1999 and has a 4.5% share of the market. It operated five regional Real Radio brands in the North West, Yorkshire, North East, Scotland and Wales as well as a national Smooth Radio network on digital radio with six FM channels covering the North West, London, Glasgow, the North East and the East and West Midlands markets.

Ashley Tabor, founder and executive president of Global Group, said: “We are pleased to have concluded this deal, and once the required approvals have been received, we will look forward to welcoming the GMG radio stations into the Global family.

“We believe that this is a very strong business with brands and assets that are highly complementary to those of Global Radio.”

Andrew Miller, CEO of Guardian Media Group, said: “Our portfolio of investments that lie outside our core national newspaper business exist to underpin the long-term financial and editorial integrity of the Guardian.

“If we believe that best value for the group lies in the disposal of a non-core asset, then we will do so.”

Global Radio owns a number of national brands including Capital FM, Classic FM, XFM and Heart.