Media Boy thinks:Guardian Media Group (GMG) has sold its radio business, which includes the Real Radio and Smooth Radio networks, to Global Radio for an estimated price of £50m.GMG, which has built up the UK's third-largest radio group over the past 13 years, signed the deal with Global Radio after receiving a number of offers for the GMG Radio unit.It is thought that the offer tabled by Global – the parent company of brands including Capital, Heart and Classic FM – was in the region of £50m and was by some distance the most attractive offer.
"The purpose of GMG's portfolio is to support and develop our journalism," GMG chief executive Andrew Miller said in an email to staff on Monday.
"This means that we are sometimes faced with the difficult choice between retaining a business that has performed well, as with this case, or deciding that a disposal at an attractive value represents the best way of discharging our responsibilities."
As part of the sell-off, Stuart Taylor, who has led GMG Radio since 2009, will leave the company.
Miller confirmed that GMG Radio had received offers from several interested parties.
Global Radio may have to deal with competition issues in areas including Cardiff and parts of the midlands as a result of the deal.
Rivals including Talksport-owner UTV Media, which is understood to have submitted a bid, Absolute Radio and Bauer Radio, which owns Kiss and Magic, are expected to look at lodging complaints with the Competition Commission that Global Radio will have too much market dominance in certain regions.
When Global Radio took control of GCap in 2008 it was forced to sell off some stations in the midlands to Orion Media, headed by former Chrysalis Radio boss Phil Riley, to appease regulators.
However, another observer points out that it appears that competition regulators are starting to take a more benign view of local media ownership rules.
-Global Radio may axe Smooth Radio on Virgin Channel 916 and relaunch Chill or The Arrow on Digital TV.