GCap Media is understood to be considering a move to divide the group’s stations into three tiers as it considers a potential structure for its merger with Global Radio.
It is thought the plan aims to simplify its management and sales structure after the merger. The changes would see its key brands, such as Heart, Capital, Galaxy and BRMB, sit in the top tier, with the second tier including branded regional stations, such as South Wales station Red Dragon. The third tier would include the two groups’ local stations.
Industry insiders say that even if the group does not have to sell off any assets, it will still have overlapping stations, particularly after it rebrands the One Network, its local stations, as Heart (MW April 3). This will lead to some stations being relaunched as “chart” stations rather than adult contemporary.
GCap declined to comment on the changes ahead of the Office of Fair Trading (OFT) ruling, due at the end of July, which will rule on what remedies the group will need to take. It will be followed by a 24-day industry consultation.
Global Radio acquired GCap for £375m in April. The plans to restructure the business follow the arrival of Ashley Tabor as GCap chief executive, and Charles Allen as chairman.
The pair resigned from the same roles at Global Radio earlier this year after the OFT ruled that the two companies must be made kept separate while it investigates the merger.