GWR and the Capital Radio Group are no more, as of yesterday it's GCap all the way with the two companies formally merging their operations to create the biggest commercial radio company in the UK, boasting 55 regional stations in addition to its one national licence - hence the aforementioned growth of purple in the reception at Capital Radio's London HQ (purple being GCap's corporate colour).
GCap might sound more like an investment bank than a radio station, but that doesn't mean complete support in the investment community. The combined value of Capital and GWR was yesterday £527 million, which is £184 million down from when the two companies announced their intention to merge last Sep. That puts the pressure on the management of the newly merged radio company, with some in the investment community yet to be convinced that the promised economies of scale the merger is meant to enable will deliver long term commercial benefits. City types will be looking for some bold moves from the new company to boost audience listening hours and reduce operating costs - which will probably mean more syndication across the group. How GCap respond to the challenge remains to be seen.
Meanwhile Chrysalis has confirmed it has bought the East Midland's branch of the Capital Group's Century Radio operation. The sale of one of its Century licences was the only condition put on GWR and Capital in order to get the go ahead for the merger by the authorities. Chrysalis plan to turn the station into a third output for its Heart brand - which currently broadcasts in London and the West Midlands.