Now, I'm pretty sure I remember the management of Scottish Radio Holdings telling us all how much they valued their independence, and how they were planning on resisting attempts by bigger media companies to take them over, despite EMAPs recent takeover offer.
But perhaps I am thinking of a different Scottish Radio Holdings, because the chief executive of this one, David Goode, told reporters yesterday: "Combining Emap's radio business with SRH's network of 22 highly rated stations in the UK and Republic of Ireland will create a strong national radio group with exciting prospects. The Offer delivers significant value for our shareholders, enabling them to realise a premium in cash."
Anyway, EMAP's radio division yesterday secured their acquisition of the Scotland based radio company. They already owned 27% of it (an equity stake they bought of the Scottish Media Group back in Jan 2004), and they will now buy the rest of it, paying just over a penny a share, a deal which values the company at £391 million. The decision by SRH management to accept the acquisition isn't a complete u-turn - their opposition to an EMAP takeover in recent months has been more about agreeing a fair price than any real opposition to becoming part of a bigger radio group.
What the takeover means for SRH's radio stations, in particular Edinburgh's Radio Forth and Glasgow's Radio Clyde, remains to be seen, though EMAP are sure to want to absorb them into its Big City radio network.
It will also be interesting to see what the acquisition does to the radio sector at large. Following the Capital/GWR and EMAP/SRH merger, and the recent acquisition of the Wireless Group by Ulster Television, the other smaller players in the radio space will now have to seriously consider whether they can compete in the radio sector all on their own.
Of particular interest is the Chrysalis Group, who own the Heart, Galaxy and LBC stations. The consensus is that they need to acquire another radio company, or they risk being acquired by another media player, either a media group who currently have no radio assets or a global radio player like Clear Channel. Or, worse still, investment types will force them to sell off each station separately.
Finding someone to acquire might not be as easy as it sounds, even if you can get together the finance to attempt a takeover. The Guardian Media Group have knocked back offers to buy their radio assets, which include Smooth FM and Real Radio, while the Scottish Media Group keep on insisting that Virgin Radio is not for sale. The Guardian (who, admittedly, aren't exactly unbiased on this matter), reckon Chrysalis bosses, who have just issued their third profit warning in a year, need to do something dramatic quickly to avoid losing control of their radio business. The Guardian say some are recommending they sell off their profitable music publishing business to fund an aggressive acquisition push in the radio space.