GCap Media

GCap Media was a British commercial radio company formed when Capital Radio Group and GWR Group completed a merger on 9 May 2005. The combination brought together two of the United Kingdom's largest commercial radio businesses and created a group with a broad portfolio of local, regional, national, analogue, digital and internet-based services. Its principal stations included the national classical-music service Classic FM, London's Capital FM, the Xfm services, the Gold network and a large collection of local stations that had previously belonged to the Capital and GWR estates. The merger was intended to create operating scale and strengthen the company's position in a consolidating UK radio market. GCap was listed on the London Stock Exchange and was included in the FTSE 250 Index. In practice, the integration was difficult. Senior-management tensions emerged soon after completion, while investors and commentators criticized the company's declining audience performance, weaker advertising income and the market-value destruction associated with the merger. David Mansfield, who had become chief executive from the former Capital Radio side, left in September 2005, leaving Ralph Bernard to combine the executive-chairman and chief-executive roles. GCap subsequently pursued restructuring and cost reduction. In October 2005 it announced approximately 100 redundancies and proposed selling nine stations considered non-core. The proposed disposal was eventually abandoned after bids failed to reach the expected level. The group also continued to adjust its station portfolio: it acquired 18 Classic Gold AM and DAB stations in 2007 and combined them with Capital Gold services to create Gold, while closing or selling several digital and regional services. These decisions reflected the commercial pressure surrounding digital radio, local-radio economics and the cost of maintaining a broad collection of brands. The company entered 2008 in a weakened position. Fru Hazlitt became chief executive in late 2007 and presented a recovery plan centered on cost cutting, withdrawal from Digital One and disposal of non-core assets. GCap sold its interest in Digital One to Arqiva and announced the closure of theJazz and other digital services, although Planet Rock remained on air while a sale was negotiated. Global Radio made an approach for the company, and GCap's board eventually accepted an improved offer valued at £375 million. The takeover was completed on 6 June 2008, making GCap a wholly owned subsidiary of Global Radio. Hazlitt resigned during the takeover period, and Global subsequently sold certain stations to address competition concerns. Global discontinued the GCap Media name on 1 November 2008, ending the brand's independent corporate existence.

GCap Media's history combined the development of Capital Radio Group and GWR Group, two major strands of British independent local radio. Capital Radio began broadcasting in London in 1973 and expanded after changes to media-ownership rules allowed commercial radio groups to acquire stations beyond their original local markets. Its acquisitions included BRMB, the Southern Radio Group, the Century FM stations and Xfm London. By the early 2000s, the Capital portfolio included a substantial collection of analogue and digital licences, as well as services such as Capital Disney and Capital Life. GWR developed from Wiltshire Radio and Radio West, which merged in 1985 to form GWR. The group went public in 1987 and built a nationwide position through acquisitions such as Marcher Radio Group, Mid Anglia Radio Group, Chiltern Radio Group and East Anglian Radio Group. It became closely associated with Classic FM, joining the station's ownership partnership in 1988 and taking full control in 1996. Classic FM began broadcasting in 1992 and gave GWR a distinctive national brand alongside its local-radio network. GWR also participated in Digital One, which began broadcasting in 1999, and experimented with internet radio and other digital extensions. The merger of Capital Radio Group and GWR Group was completed on 9 May 2005. GCap was listed in London and initially operated under Ralph Bernard as executive chairman and David Mansfield as chief executive. The integration quickly generated controversy among investors and employees. Mansfield left in September 2005, after which Bernard assumed both senior roles. The company announced a restructuring in October, including about 100 job losses and an intended sale of nine non-core stations. Because potential bids were substantially below expectations, the disposal process was cancelled. GCap attempted to manage its large portfolio through shared programming and common station positioning. Its One Network linked many local stations with related branding and syndicated output, while the company retained national and specialist brands such as Classic FM, Xfm and Gold. This approach offered production efficiencies but also exposed the group to criticism when local stations lost distinctiveness or when audiences and advertising revenues weakened. In 2007 GCap purchased 18 Classic Gold services from Unique Broadcasting Company Media Group. The stations were merged with Capital Gold licences, and Gold launched on 3 August 2007. At the same time, several services were closed or sold, including The Storm and Capital Disney, while Core, Capital Life and theJazz were later shut. The business's digital strategy became a major point of disagreement. In February 2008 Fru Hazlitt, appointed chief executive in late 2007, announced a recovery plan that included selling GCap's Digital One stake and withdrawing from loss-making or non-core digital services. TheJazz ceased broadcasting at the end of March, while Planet Rock was sold after negotiations with potential buyers. Global Radio made a takeover proposal as GCap's share price weakened. The transaction, valued at £375 million, was completed on 6 June 2008. The Office of Fair Trading required the disposal of several overlapping local stations, and Fun Radio was also sold to Folder Media later that year. GCap became a wholly owned Global subsidiary, and Global discontinued the GCap name on 1 November 2008. Its principal station brands and selected assets continued under Global's ownership, but GCap Media itself ceased to exist as an operating brand.

• 2008

  Global Radio completes acquisition

  [1]GCap Mediaen.wikipedia.org

  Global Radio completes its takeover of GCap on 6 June.

• 2008

  GCap name is discontinued

  [1]GCap Mediaen.wikipedia.org

  Global Radio stops using the GCap Media name on 1 November.

• 2007

  Gold launches

  [1]GCap Mediaen.wikipedia.org

  Classic Gold services are combined with Capital Gold licences to create Gold.

• 2005

  GCap Media is created

  [1]GCap Mediaen.wikipedia.org

  Capital Radio Group and GWR Group complete their merger on 9 May.

• 1996

  GWR takes full control of Classic FM

  [1]GCap Mediaen.wikipedia.org

  GWR acquires full control of the Classic FM operation.

• 1992

  Classic FM begins broadcasting

  [1]GCap Mediaen.wikipedia.org

  The national classical-music station Classic FM launches.

• 1987

  GWR Group goes public

  [1]GCap Mediaen.wikipedia.org

  GWR Group becomes a publicly traded company.

• 1985

  GWR is formed

  [1]GCap Mediaen.wikipedia.org

  Wiltshire Radio merges with Radio West to create GWR.

• 1973

  Capital Radio launches in London

  [1]GCap Mediaen.wikipedia.org

  Capital Radio begins operating as one of the UK's earliest legal commercial radio stations.

A large UK commercial-radio group spanning mainstream local radio, national classical music, contemporary music brands, AM and DAB services, and syndicated programming.

• National radio station · 1992

  Classic FM

  A nationwide British classical-music radio service and one of GCap's most prominent national assets. Classic FM gave the group a specialist, nationally recognized brand distinct from its mainstream pop and local-radio operations. It originated in the GWR portfolio and remained part of the business after the Capital-GWR merger.

• Commercial music radio · 1973

  Capital FM

  The flagship contemporary-music service associated with Capital Radio Group. The London station formed part of the merged company's mainstream music portfolio and sat alongside numerous regional stations that adopted related Capital or network branding.

• AM and DAB radio network · 2007

  Gold

  A network created by combining GCap's Capital Gold licences with 18 Classic Gold AM and DAB stations acquired from Unique Broadcasting Company Media Group. Gold consolidated the group's heritage-music services and launched on 3 August 2007.

• Alternative music radio · 1997

  Xfm

  An alternative and specialist music-radio brand acquired by Capital Radio Group in 1998. GCap operated Xfm services in London, Manchester and Scotland, although the portfolio was later rationalized and the non-London services faced closure or disposal.

• Local radio network

  The One Network

  A networked group of local UK stations assembled from former GWR Mix Network and Capital Radio Group services. It used common positioning and syndicated programming to achieve production efficiencies while maintaining local transmission licences.

• Digital-only radio station

  Chill

  A national digital station carried on DAB and selected television platforms. It was one of the digital services in the GCap portfolio during the group's final period, although many other digital brands were closed or sold.

• 2008

  Withdrawal from Digital One and digital-service rationalizationStrategy

  Background

  Chief executive Fru Hazlitt presented a recovery plan amid pressure from Global Radio and concerns about the cost and profitability of digital operations.

  Action taken

  GCap sold its interest in Digital One and announced closures of theJazz and other non-core digital services.

  Aftermath

  TheJazz closed at the end of March 2008, while Planet Rock was subsequently sold after negotiations with prospective buyers.

  Source

• 2008

  Takeover by Global RadioM&A

  Background

  GCap's weakened valuation and continuing strategic difficulties made it a takeover target.

  Action taken

  GCap shareholders accepted an improved Global Radio offer, and the acquisition completed on 6 June 2008.

  Aftermath

  GCap became a wholly owned Global subsidiary. Regulatory clearance required several station disposals, and Global discontinued the GCap name later that year.

  Takeover consideration. £375 million (2008 acquisition)

  Source

• 2007

  Acquisition and consolidation of Classic Gold servicesM&A

  Background

  GCap sought to strengthen its heritage-music portfolio and reuse licences previously associated with GWR.

  Action taken

  The company acquired 18 AM and DAB Classic Gold stations and combined them with Capital Gold services.

  Aftermath

  The consolidated Gold network launched on 3 August 2007.

  Source

• 2005

  Restructuring and proposed sale of non-core stationsStrategy

  Background

  The newly merged group faced integration costs, falling market confidence and concerns about audience and advertising performance.

  Action taken

  GCap announced approximately 100 job losses and put nine stations up for possible sale.

  Aftermath

  The sale process was abandoned after bids were below expectations, while the company remained under pressure to improve efficiency and shareholder value.

  Source

1. 1GCap Mediaen.wikipedia.org