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Global GMG Deal - Competition Commission


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Old 13-02-2013, 18:10
Martin Phillp
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Agreed, Real Yorkshire has never covered Humberside or Lincolnshire on FM so it wouldn't be a great loss really.
Global could still launch Heart via the back door, if they were to acquire Lincs FM and base it in Lincoln or Hull if they also acquire KCFM.

It may be a better proposition if they acquire most of the Lincs FM stations seeing it's going to be impossible for Global to have both Yorkshire regional licences. Compass in Grimsby and Rutland Radio could be sold to UKRD.
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Old 13-02-2013, 18:18
andys corner
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In Manchester one of 2 things will happen:
1. Real xs sold to Bauer- becomes planet rock
2. Key 103 either stays with Bauer or gets sold to someone else- utv? Steve penk?
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Old 13-02-2013, 18:23
-ajm-
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Does the licence holder own the Red Dragon brand and could, let's say UTV resurrect it?
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Old 13-02-2013, 18:31
sparry
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Does the licence holder own the Red Dragon brand and could, let's say UTV resurrect it?
I think they trademarked, or copyrighted (I'm not sure of the term) the Trent FM, Ram FM and Leicester Sound names about a month or so before they announced the rebrand to Capital
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Old 13-02-2013, 18:32
sparry
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Going back on topic, here in the East Midlands it seems a certainty that 106.6 will be sold, I just cant see them giving up Capital East Midlands.
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Old 13-02-2013, 18:35
omnidirectional
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In Manchester one of 2 things will happen:
1. Real xs sold to Bauer- becomes planet rock
2. Key 103 either stays with Bauer or gets sold to someone else- utv? Steve penk?
Key 103 is owned by Bauer and isn't related to the current GMG/Global takeover, unless I've missed something. Are you thinking of Capital Manchester?
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Old 13-02-2013, 18:53
Les Wires
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Going back on topic, here in the East Midlands it seems a certainty that 106.6 will be sold, I just cant see them giving up Capital East Midlands.
A couple of points.

1. In the West Mids, there would be Capital, Heart and Smooth all owned by Global but no mention of this area by CC.

2. There are bound to be a few negotiations before the final recommendations are knowm. Perhaps the East Mids requirements will be watered down, particularly taking account of the West Mids decision.

3. I don't see Global giving up any Smooth or Real/Heart station. This is surely the reason for the purchase. Perhaps the odd under performing Capital station, following intense negotiations.
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Old 13-02-2013, 18:57
Martin Phillp
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A couple of points.

1. In the West Mids, there would be Capital, Heart and Smooth all owned by Global but no mention of this area by CC.
Orion and Bauer would still provide healthy competition for Global in the West Midlands. Capital is a local licence for Birmingham.
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Old 13-02-2013, 18:57
Martin_S
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I think the important question here is, why are the Competition Commission doing Ofcoms job for them? If Ofcom were not being paid to do nothing they would have blocked this from the word go!
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Old 13-02-2013, 19:06
SouthCity
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I think the important question here is, why are the Competition Commission doing Ofcoms job for them? If Ofcom were not being paid to do nothing they would have blocked this from the word go!
The Competition Commission has the statutory powers to demand access to all confidential documents in forming a judgement, whereas Ofcom doesn't.

Global self-referred the deal to the Competition Commission, and other radio groups also wanted the Competition Commission to take a look at it so that they had access to all of the papers containing Global's intentions and business plans.

Far from blocking it Ofcom actually said there were no media plurality issues with the deal.
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Old 13-02-2013, 19:09
dpb
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Agreed, Real Yorkshire has never covered Humberside or Lincolnshire on FM so it wouldn't be a great loss really.

In Wales I think there is no chance of them offloading Real and keeping Capital Cardiff. The former has just had huge listening figures while the latter is struggling badly.

That provisional offer of the enhanced news on Real Wales (including a dedicated Welsh Assembly reporter and a 20 minute daily news roundup) will almost certainly never materialise.
That offer was only dependent on Global being able to own all the Wales interests anyway (which was unlikely), so it will never materialise.
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Old 13-02-2013, 19:25
Les Wires
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Orion and Bauer would still provide healthy competition for Global in the West Midlands. Capital is a local licence for Birmingham.
Fair enough Martin, I was forgetting Kerrang.

Not sure why Gold seems to have been generally left out of the equation. Are AM stations not considered these days.
(not referring to W.Mids which is run by Orion).
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Old 13-02-2013, 19:30
Boolian
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I would have thought for the East Midlands Gold or Smooth or even a merged station called Smooth Gold could take 106.6 and then Global could sell 999 and 945 either to Orion or to Bauer. Surely that would keep competition...
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Old 13-02-2013, 19:35
Bingethink
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Not sure why Gold seems to have been generally left out of the equation. Are AM stations not considered these days.
(not referring to W.Mids which is run by Orion).
The document explains, if you read it:

Globalís AM station Gold has been excluded from the list of possible divestitures as currently the Group [i.e. the Competition Commission] does not consider it likely to be an effective divestiture in any local area either on its own or in combination with other divestitures, in light of its relatively low share of listeners and low share of advertising revenue, the fact that it is only broadcast on AM within the overlap areas and that it is a Global station, rather than part of the acquired business.
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Old 13-02-2013, 19:49
andys corner
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Key 103 is owned by Bauer and isn't related to the current GMG/Global takeover, unless I've missed something. Are you thinking of Capital Manchester?
Yep sorry, 3 hours commuting a day messes with my head.
Trying to get 2 points accross at once, key 103 has gone off the boil so wouldn't be surprised if someone wanted to make a station like they were.
Capital Manchester could be sold as networking is being attempted with real.

Real xs could be sold and made into planet rock
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Old 13-02-2013, 20:03
MattJW
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Sorry If I am being thick but what are Global's three options?
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Old 13-02-2013, 20:06
andys corner
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Sorry If I am being thick but what are Global's three options?
1. Not go ahead with the deal
2. Sell some existing stations
3. Not buy all the stations it wants to
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Old 13-02-2013, 20:06
kev
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Why has the CC highlighted the East Midlands but not the West Midlands?
Capital + Smooth vs Gem

Heart + Smooth vs Kerrang, Free

So let's have a guess, It's obvious that Capital and Heart are the main brands.

East Midlands
Smooth -> Bauer as Magic

Greater Manchester
Xfm -> Bauer as Kerrang
Real Radio XS -> Bauer as Planet Rock
Gold -> Asian Sound

Capital (unchanged)
Real -> Heart
Smooth -> Smooth/Gold

North-East
Smooth -> Bauer as Magic

Capital (unchanged)
Real -> Heart

South and West Yorkshire
Real -> Bauer as Magic

Capital (unchanged)

Central Scotland

Smooth -> Bauer as Clyde 2 or Magic
Real Radio XS -> Bauer as ??? If they acquire Absolute possibly Absolute Radio 80s?

Capital (Unchanged)

West Midlands / London
Smooth -> Smooth / Gold

Wales
Interesting once this - Depends on how flexible Ofcom are likely to be with the licences. The obvious one to offload is Real Radio. If the buyer is wanting to run a Wales-wide station and happy to take on some Welsh language programming perhaps Global can get Heart North Wales Welsh free

As for the Magic AMers - well the current format is a good companion to Magic FM so with a little tweak could become something like "Magic Classic Hits" without offering too much duplication.
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Old 13-02-2013, 20:14
Bingethink
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1. Not go ahead with the deal
2. Sell some existing stations
3. Not buy all the stations it wants to
Not quite! The deal has already gone ahead. Global owns Real and Smooth Ltd.

The three options are:

1) Sell off the whole of Real and Smooth Ltd to someone else.

2) Sell off Real and Smooth Ltd except for Smooth in London and the West Mids which the CC are happy for them to keep.

3) Sell some combination of stations yet to be determined to keep the CC happy. This option is what the CC is now consulting on.
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Old 13-02-2013, 20:19
darkknight77
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In Manchester one of 2 things will happen:
1. Real xs sold to Bauer- becomes planet rock
2. Key 103 either stays with Bauer or gets sold to someone else- utv? Steve penk?
Bauer are very unlikely to want to swap Key 103 for Real XS
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Old 13-02-2013, 20:20
MattJW
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1. Not go ahead with the deal
2. Sell some existing stations
3. Not buy all the stations it wants to
Thank you
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Old 13-02-2013, 20:21
simon243
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So let's have a guess, It's obvious that Capital and Heart are the main brands.

East Midlands
Smooth -> Bauer as Magic

North-East
Smooth -> Bauer as Magic

South and West Yorkshire
Real -> Bauer as Magic

Central Scotland
Smooth -> Bauer as Clyde 2 or Magic
There's no way Global would willingly sell lucrative regional FM licences to their biggest competitor, who could launch Magic in markets where they're launching Heart.

If they have to sell stations it'll be to small groups who, frankly, aren't a big threat - or to new players we're not even aware of yet, like Orion was when they had to sell BRMB etc.

If Bauer picks up anything, it'll be Xfm Manchester and the Real XS licences but certainly none of the Smooths or Reals.

At the end of the day, if Global has to weigh up what to sell in each market, it'll probably sell the stations that make the least profit.
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Old 13-02-2013, 20:21
BMR
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So let's have a guess, It's obvious that Capital and Heart are the main brands.

East Midlands
Smooth -> Bauer as Magic
hmm, maybe. But remember Bauer currently have no presence in the East Midlands. Unless they get permission to run the whole thing from Sheffield or Birmingham, they may not be interested.


My money is on Smooth being sold as a single entity, including the London and Birmingham stations. That would involve selling more than the minimum, but would probably raise more money.

That just leaves Wales and Yorkshire. I'd be surprised if they don't at least get offers on Capital Yorkshire, it's got to be worth a bob or three that one.

That leaves them with a happy CC, and a nice pot of cash for further expansion of Heart- the obvious remaining gaps being Lincs FM and Northern Ireland
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Old 13-02-2013, 20:24
Ryan Morgan
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I think that in South Wales they will keep Real and sell Capital off to Bauer, or wouldn't that not be allowed because of Kiss 101?
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Old 13-02-2013, 20:28
simon243
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My money is on Smooth being sold as a single entity, including the London and Birmingham stations. That would involve selling more than the minimum, but would probably raise more money.
No - Global aren't in the business of selling licences they don't have to, so they'll hold on to Smooth in London & Birmingham and use it to attack Magic and Free from the older end.

Every licence Global sell gives someone else the opportunity to take listeners and revenue off them, so they'll only sell what they absolutely have to to keep the CC happy.
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