Virgin Radio sale gets advertisers' support

Advertisers including McDonald’s, Cellnet and Carphone Warehouse said

they would continue to use Virgin Radio after the deal.

Charles Dunstone, managing director of Carphone Warehouse, which spends around pounds 5m a year on radio ads and used Virgin for the first time when Chris Evans began presenting its breakfast show in October, said rivalry between Capital and Virgin would be good news for

advertisers.

"Virgin has always had disappointing audience figures, and this is the

perfect opportunity for it to realise its potential and increase its

share of listeners."

The deal will give birth to a new company, Ginger Media Group (GMG),

which combines the assets of the Ginger-owned companies and Virgin

Radio.

Chris Evans, with his Ginger partners, which include John Revell,

previously managing director of Virgin Radio, will have a 55% stake in

GMG.

Apax Partners, which is backing the deal with pounds 23m, will own 20%,

with 20% going to Richard Branson and his family trust, which is

providing pounds 20m for the deal.

David Campbell, Virgin Radio’s chief executive, will become chief

executive of GMG.

This article was first published on Marketing