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GCap left in the cold by Emap decision

Posted in Media, Oliver Milman, Latest reporters' blogs December 7th, 2007 by Oliver Milman

It’s a strange position for a market leader to be in, but GCap Media looks decidedly vulnerable at the moment.

The cash-strapped radio group, which owns Capital 95.8 and Xfm, predictably failed to get its hands on any of Emap’s radio portfolio. But the big surprise is that magazine group H Bauer snared the stations, not the Charles Allen-led Global.

This throws up a few problems for GCap. Global wants to dominate the radio industry and do it quickly. It also has want many in the market don’t – cash. And lots of it.

With GCap’s share price falling, the company is ripe for a takeover, if Allen and his gang would like the hassle of sorting out a failing radio group.

Should Global scoop up GCap, then many of the UK’s top radio brands – Heart, Classic FM, Capital, Galaxy etc – would be under one roof.

What an amazing scenario for Charles Allen, who left ITV under a cloud and had no known interest in radio until August, when his all-star consortium gobbled up Chrysalis’ radio arm.

GCap is also hampered by the fact that its chief executive Ralph Bernard is stepping down, to trek around South America with his wife, according to the man himself.

With the forthright Fru Hazlitt favourite to take over, expect plenty of fireworks to fly if Global decides to make its move for GCap. But should an approach be made and what would be the impact upon the radio industry?