“The last thing the industry (and its advertisers) need is internecine warfare between Virgin and Capital.”This is, however, already on the cards. With pounds 87m burning a hole in its pocket, Capital is expected to turn its attention to smaller acquisitions – London’s Melody Radio, perhaps, or Atlantic 252. It has a successful record of buying under-performing local stations, restructuring them and dramatically increasing profits. Yes, it wants to expand in UK radio, but no, losing Virgin “isn’t a major setback”.
In fact, there’s still “ample scope for radio expansion”.Playing old fogey to Ginger’s young upstart, however, may not be in the long-term interests of commercial radio, because it deflects attention from commercial radio’s more pressing need: fighting the BBC. But there is plenty of life yet in the company he last week dismissed as a “bleating, blowing asthmatic dog”. While Capital Radio may be a pounds 370m minnow compared to, say, a Granada, it is still one of the UK’s most profitable media companies. “National radio or local, it doesn’t really matter – it’s about developing the business,” the company whispers, claiming it has successfully repositioned itself as a music-based entertainment group whose interests span radio, themed restaurants, a record label, artists’ management agency and Internet broadcasting. Chris Evans may be a skilled manager of his own image and career, but how generous will he prove to be in bringing on others?It is easy to see how, with its City and suits profile, Capital has been polarised as Evans’s dreary opposite.
Heady with success, Evans even hinted to the Financial Times at possible takeovers or mergers. While few can deny Virgin Radio’s programming could be performing better, there is no obvious source for the talent needed to fill the shoes of the older, more established DJs Evans has targeted for the chop. Evans will leave the day-to-day running of the business to them, apparently.But how well will the new team bed down? And exactly what will the Ginger touch bring to Virgin programming which does not star Evans himself?Industry observers note that Campbell and Revell have a volatile history – the pair worked together in the early days of Virgin Radio until they famously fell out. Evans and partners, including Ginger Productions’ managing director, John Revell, will take 55 per cent of a new company, Ginger Media; Virgin will take 20 per cent. Virgin Radio’s chief executive, David Campbell, becomes chief executive of Ginger Media, while Evans’s wily agent, Michael Foster, becomes chief executive of Ginger’s TV interests.
Not only did Branson go for Evans’s “unpredictable streak”, the papers lapped it up.So Ginger, backed by the investment firm Apax, is buying Virgin for pounds 85m. Not only does Freud represent Evans personally, he also has PR minions sit in on Chris’s shows logging quips and scams that might make tomorrow’s headlines. No sooner is something said on air it has been written up and press-released.Evans, meanwhile, has taken himself firmly in hand since regularly humiliating his employees on air and getting too drunk to present the next day’s Radio 1 breakfast show. Recent weeks have seen a surprising number of interviews with Chris and his cronies presenting a cuddlier image The strategy has worked. Second, astute media manipulation by Evans and spinmeister Matthew Freud, who works hand-in-glove with Evans and his TV company, Ginger Productions.
