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Global deal prompts more questions than gives answers

Posted in Media, Latest reporters' blogs, Russell Parsons April 1st, 2008 by Russell Parsons

So the dance comes to an end and David has felled Goliath. The GCap board’s acceptance of the Global’s £375 million offer brings a possible, barring any hiccups, conclusion to the courtship which has consumed the radio industry all year.

As one saga ends, another begins – namely the speculation and inevitable industry rumination over what is next for GCap’s radio stations and its staff.

Rumours will be rife about the future of chief executive Fru Hazlitt, whose February strategy plans failed to keep the radio group’s shareholders from accepting Global’s improved offer. A savvy an experienced radio operator, Hazlitt would undoubtedly bring plenty to the table but will she be comfortable playing second fiddle if succeeded as chief executive?

Also, what next for GCap’s flagship brands? Capital 95.8 has fallen behind both Magic 105.4 and Heart 106.2 in London audience reach of late and GCap were hoping the appointment of Paul Jackson as managing director would provide a much needed boost to its fortunes. Will Charles Allen place the same focus on the brand as Hazlitt said she would in February?

What of the thorny issue that is DAB? Hazlitt’s decision to sell its stake in national digital radio operator Digital One as well as closing its digital radio stations TheJazz and Planet Rock was widely seen as showing a lack of faith in the technology and prompted much debate on its future. It will be interesting to see if a clear strategy emerges on DAB from the new kings on the radio block.

Finally, what of GCap’s rank and file? Are we about to see a mass exodus of worried staffers? Global is widely seen as having much faith in the medium so I expect most will adopt a wait and see approach but any upheaval generally leads to casualties, so watch this space.

This story, with the myriad of questions it raises, has the legs to run and run……

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