madcomments

Will Goliath triumph over David?

Posted in Advertising, Media, Marketing, Latest reporters' blogs, Russell Parsons March 3rd, 2008 by Russell Parsons

So the dance continues, or is it a fight to the death? Global Radio’s latest knockback from GCap Media is the latest chapter in this modern day David and Goliath.

The young upstart’s latest bid was rejected as it “significantly undervalues the company” according to GCap. The largest commercial radio group in the UK were particularly miffed following chief executive’s Fru Hazlitt strategy announcement last month where, and I am paraphrasing entirely for comedic effect, she did everything she could to stop those awful bullies stealing our company.

So what now? This fable has the best part of a week to play out yet, with the Takeover Panel’s 5 March deadline still in place. Will Global raise its offer and bid again, or will GCap’s show of strength win the day?

I am no financial forecaster but I am as capable of making what may prove to be widely inaccurate predictions as the next man. In a spectacular reverse of the Old Testament allegory, it will be Goliath, in this case GCap, who will win out against Global’s David.

I predict another offer and ultimate rejection for Global Radio this week.

Controversial and surprising as some of Hazlitt’s strategy announcements last month were, the apparent lack of faith in DAB and the auction of the three regional XFM licences to name two, I think they have done the trick.

This, of course would leave Global in a spot with all its ambition but with no obvious outlet left to explore. With Bauer snapping up Emap Radio last year and this latest and possible final rejection for Global perhaps closing the door on its interest in GCap, what next?

Global were widely touted to be among the four reported bidders for SMG’s Virgin Radio, but that would be scant consolation after eying the main prize.

Perhaps we will see an audacious bid for GMG Radio?

To read the related news story visit mad.co.uk