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Allen’s GCap ambition looks to seal stunning comeback

Posted in Media, Oliver Milman, Latest reporters' blogs January 14th, 2008 by Elspeth

Charles Allen has reacted in superb fashion to his acrimonious departure as chief executive of ITV – he is looking to become a genuine media overlord by scooping up most of the UK’s best-known radio brands.

Having been snubbed by Emap in favour of the unlikely German contender H Bauer in the sale of stations including Magic and Kiss, despite offering more money for them, you could imagine Allen turning slightly pink at another high-profile setback.

However, his Global Radio group, having already devoured Chrysalis Radio, is now enmeshed in negotiations over the acquisition of GCap, the industry’s troubled leading player and owner of Capital, Classic FM and Xfm.

Those who thought Allen’s dramatic entry to radio from TV was ego or money-fuelled have been put in their place.

This man clearly is in the business for the long run, as evidenced by the hiring of perma-tanned Fame Academy judge and radio programming tzar Richard Park and the desire to try and turn around a basket case like GCap.

Allen is potentially in a more powerful position than he ever was at ITV – he could be the man responsible for the consolidation of the radio industry and the commercial sector’s fightback against the dominant BBC.

First, however, he has to win over Fru Hazlitt, GCap’s new chief executive. Beleaguered GCap shareholders, who have seen their investments dwindle along with the company’s on and off-air fortunes, must’ve felt like dancing a jig of joy as the company’s value shot up on Monday following news of the rebuffed takeover bid.

However, Hazlitt, having finally secured her desired top job, is keen to turn the company around and show that it can survive on its own. Allen will have a fight on his hands to wrest control away from her.

Luckily for Hazlitt, who would undoubtedly be helplessly pinned under Allen’s considerable undercarriage, the fight is not a literal one. Who will emerge victorious from this battle of two of the media’s shrewdest operators?