Across the pond: Anatomy of a merger


United Kingdom’s Telegraph Media Group put out a report recently describing results of a radio merger that were disappointing, to say the least. The wedding of two strong companies, London leader Capital Radio and regional powerhouse GWR ended up with stock prices falling from 40 to 16 pounds. Ideally, says TMG, the nuptials would have combined each company’s cultural assets, including "…Capital’s glamour and GWR’s good cost control." Instead, investors got Capital’s arrogance and GWR’s insularity. The merged company is said to have been hurt by letting key talent slip away (and losing the top slot in London), by becoming a target of the rest of the industry, and making a big bet on HD radio, "…a bet that may have proved a loser," TMG opined.