GMG, Global Terminate U.K. Sales Deal
October 19, 2007 at 5:43 AM (PT)
The TIMES OF LONDON is reporting that the sales contract between GUARDIAN MEDIA GROUP and GLOBAL RADIO has been terminated after talks to save the deal collapsed. GLOBAL had inherited the national sales representation rights for GMG stations from CHRYSALIS RADIO when it bought the latter company; GMG says it terminated the deal OCTOBER 4 and talks to renegotiate the deal have now collapsed, with GLOBAL saying it rejected GMG's final offer on WEDNESDAY.
"GMG RADIO today announces that it is terminating its national sales contract with CHRYSALIS RADIO. The move follows the takeover of CHRYSALIS by GLOBAL RADIO," reads a statement from GMG. "GMG RADIO has reviewed its national sales arrangements over recent months and the change of ownership provided the opportunity to exit the contract."
And another deal involving GLOBAL has also collapsed, with a partnership between NEWS CORP.'s satellite TV company BRITISH SKY BROADCASTING and GLOBAL to launch SKY NEWS RADIO being dissolved. A joint statement from the parties said that GLOBAL, which inherited the deal from CHRYSALIS, and SKY would not proceed with the launch on digital radio and via News LBC-A/LONDON for "commercial reasons." SKY is looking for a new partner for the all-News service.