Following GWR's decision that it wasn't interested in having just a minority stake in dance music station Vibe Radio (as previously reported the competition authorities wouldn't let them hold more than 25%), now one of the radio group's shareholders has said they aren't interested in just a minority stake in GWR.
The Daily Mail and General Trust - who own 30% of GWR - yesterday said they would be looking to significantly increase their stake, or bail out of radio all together.
But GWR chief executive Patrick Taylor told Media Guardian he was confident his shareholder wasn't about to make a snap decision: "As far as we are concerned they have made it clear to us they look at this business as long term investments. They have made it clear they are not in this business to be 30% shareholders. They will either gain control or sell out. But the resolution of all this may be five years away, 10 years away or 20 years away. They like the digital radio plan that we have, and they are great believers in opportunity to add value to the assets we have in digital radio. They do not control this company. Their directors are genuinely commercial in their approach to this company. If ever there was a conflict, they absent themselves from it."
Some insiders reckon it wouldn't make sense for DMGT to increase their stake in GWR until after the merger and acquisition spree that is expected in commercial radio when new slacker broadcasting regulations become law. GWR's strength is that unlike rivals EMAP and Chrysalis (and even Capital) they don't have any media interested outside the radio world - making it easier for them to absorb smaller radio companies, or may be even the radio operations of one of the other majors. If the DMGT became a majority stakeholder competition authorities might limit how many stations GWR could acquire on the grounds of the parent company's other media interests.