Britain's Capital Radio and GWR Mull Merger

20 July 2004

Two of the UK's major national radio companies -- Capital Radio and GWR -- are reportedly planning a union that would create Britain's largest radio broadcaster, with a market capitalisation of around £800 million ($1.5bn; €1.21bn).

News of the merger talks will raise few eyebrows in the radio and financial sectors, which have for some time predicted a marriage between the two.

Expectations were fuelled by rumours earlier this year that Capital was planning a hostile bid. But hostility now seems to have transmogrified into a love match.

In a recent research note, Lazard-owned stockbroker Panmure Gordon wrote: "We believe the two companies are far into the negotiations but at the moment appear to be stuck on management issues and relative valuations."

Although neither broadcaster has publicly confirmed this nor, significantly, have they denied it.

If merger pact becomes merger fact, the enlarged company's portfolio will include such networks as GWR's Classic FM and Mercury FM; also in the family will be 95.8 Capital FM, Capital Gold, XFM and Century.

Data sourced from:; additional content by WARC staff