- Capital Radio is to acquire alternative London music station Xfm, in a deal which values the station at £15.9 million.
Capital will acquire 90.1 per cent of the issued share capital of the station, in a bid which is conditional upon both the Radio Authority and the Office of Fair Trading's clearance. The transaction includes the assumption of new debt outstanding at completion which it is anticipated will amount to £1.9 million.
Xfm has struggled since launch its launch last September. In its second Rajar survey, covering the first quarter of 1998, it achieved a share of 0.6 per cent of total listening hours in London.
By the end of December it had already racked up £1.7 million in losses, which included launch costs.
The acquisition of Xfm will take Capital's presence in the London area to two FM licences and one AM licence. It is intended Xfm will operate from Capital Radio's Leicester Square offices following the completion of the deal.
Founder and managing director of Xfm Chris Parry will continue as a director of the station and he will retain a 9.9 per cent share holding in the station.