SMG Strengthens Hold Over Virgin Radio

Scottish Media Group, (SMG), has named Fru Hazlitt from Yahoo! to be its new chief executive of radio, strengthening its hold over Virgin Radio.

SMG has recently rejected a string of offers for its national radio station, most notably from private equity group, 3i.

The takeover bid started in December, but to no avail after SMG rejected the offer of Lord Alli, the media heavyweight spearheading 3i’s bid. Reports indicate that 3i has threatened to increase the pressure on SMG by directly approaching shareholders after the rejection (see SMG Rejects 3i Offer For Virgin Radio).

Hazlitt, is currently managing director of Yahoo! UK & Ireland, and will replace John Pearson, who announced his resignation last year, on personal grounds, and left the group recently (see Virgin Radio Chief Executive Steps Down).

Pearson, who has spent the last four and a half years at the helm of Scottish Media Group’s radio division, announced his intention to step down in an attempt to re-address his work-life balance after more than a decade at the radio station.

Commenting on Hazlitt’s appointment, Andrew Flanagan, SMG chief executive said that it was “testament to the strength and popularity of the Virgin Radio brand” and that he was “looking forward to seeing Fru putting her ideas into action.”

Last month, SMG released an upbeat trading statement for the year ending 31 December 2004, revealing a 9% increase in profit before tax like for like, to £17.5 million, compared with £16 million in 2003 (see SMG Enjoys 9% Rise In Profit For 2004).

Total operating profit rose by a massive 62% year on year, up to £17.7 million in 2004 from £10.9 million in 2003. This increase was aided by the strong performance of Scottish TV and Grampian TV; both outperformed the commercial television market as a whole in 2004.