Bennett Coleman to sell Absolute Radio in UK to Bauer Media

Fri Aug 2, 2013 12:52pm IST

Related Topics

Bauer Media UK, a division of the Bauer Media Group, is buying Absolute Radio (erstwhile Virgin Radio) from Bennett, Coleman & Co. Ltd (BCCL), the privately held parent of The Times of India group, as per a company statement. This would mark an exit for the Indian media giant from what was seen as an expensive overseas expansion move.

Although Bauer Media did not disclose the deal value, various media reports pegged the deal value around £22 million. This would mean the firm has managed to exit the firm at about half of what it spent to buy the firm.

In mid-2008 the Indian media group had paid around £53.2 million (Rs 445 crore or $100 million back then) to acquire Virgin Radio. The firm was renamed as Absolute Radio. It has struggled to generate financial value for BCCL which has been reportedly looking to exit for over two years now.

BCCL, which has a string of media publications in India such as The Times of India, The Economic Times and Femina, also runs multi-media properties such as lifestyle channel Zoom, business channel ET Now, English movie channel Movies Now besides its own radio channels under the Radio Mirchi brand.

"Absolute Radio and its sister brands are loved by millions of UK consumers and by advertisers. This acquisition will be an opportunity to learn and share across both businesses," said Paul Keenan, CEO, Bauer Media UK.

Bauer Media Group is one of the leading publishing groups in Europe. The Group has over 300 magazines in 15 countries, as well as online, TV and radio stations. Bauer Media joined the Bauer Media Group in January 2008, following the acquisition of Emap plc's consumer and specialist magazines, radio, TV, online and digital businesses. Collectively, the Group employs over 6,400 people.

Bauer Media is a multi-platform UK-based media Group consisting of many companies collected around two main divisions--Magazines and Radio.

Earlier, John Pearson, a former chief executive of Virgin Radio, had pulled out of talks to buy Absolute Radio in a management buy-in deal supported by private equity firm Oakley Capital, as per Mediaweek.

-- Copyright 2013 VCCircle.com. All rights reserved. This content/article is provided by Mosaic Media Ventures Private Limited and not by Reuters. All rights, including copyright, in this content/article provided by VCCircle.com are owned or controlled by Mosaic Media Ventures Private Limited. The content may not be copied, broadcast, downloaded and stored (in any medium), transmitted, adapted or changed in any way whatsoever without the prior written permission of Mosaic Media Ventures Private Limited.

FILED UNDER:

"India's Daughter"

Reuters Showcase

Microfinance

Microfinance

Funding the unfunded: India helps small business borrow to grow  Full Article 

Insurance Sector

Insurance Sector

UK healthcare firm Bupa sees strong growth in India  Full Article 

Sensex Rises

Sensex Rises

Sensex edges up; consumer and healthcare stocks rise  Full Article 

Market Eye

Market Eye

FTSE adds nine Indian firms as large-caps in Asia-Pacific ex-Japan index   Full Article 

Indian Ocean Diplomacy

Indian Ocean Diplomacy

PM Modi to ramp up help for Indian Ocean nations to counter China influence  Full Article 

ECB Bond-Buying

ECB Bond-Buying

ECB raises growth forecasts, to start printing money next week  Full Article 

China Economy

China Economy

China signals "new normal" with lower annual growth target  Full Article 

Pharma Sector

Pharma Sector

Panel recommends waiving late-stage trials for some drugs  Full Article 

E-commerce

E-commerce

China backs e-commerce expansion in win for Alibaba, JD.com  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage