MUMBAI: Scottish Media Group (SMG) shareholders have agreed the sale of Virgin Radio to The Times of India Group. At the company’s general meeting, shareholders backed the disposal, which is due to be completed by 30 June.
The national radio station was bought by a consortium including the Times of India Group, one of India’s largest media and entertainment firms, for ?53.2m at the end of May 2008, says a Guardian report.
Virgin Radio is to be renamed, giving its new owner freedom to build online, TV, music and other spin-offs without having to consider branding restrictions imposed by Sir Richard Branson’s Virgin Group.The Times of India subsidiary company – TIML Golden Square Ltd – will invest an additional ?15 million on re-branding Virgin Radio, which includes a new brand identity and name. TOI will also be looking at expanding into social networking, downloads and gaming.
It will be run by a combination of the subsidiary, Times Infotainment Media Limited, and consortium partner Absolute Radio, the European group that already owns the music station Jack FM in Oxford.
The deal adds Virgin Radio, which operates under an AM license nationwide and FM in the London area, to the Indian group’s stable of media assets that includes the Times of India, the world’s largest-circulation English broadsheet daily newspaper, and India’s leading English news channel, Times NOW.
According to SMG, the proceeds from the sale will be used in paying down debts and returning approximately ?30 million to shareholders. The company paid Chris Evans ?225m for Virgin Radio in 2000.