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
"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
Chris Evans, with his Ginger partners, which include John Revell,
previously managing director of Virgin Radio, will have a 55% stake in
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.