UBC’s Commercial Unit Sell-Off Killed Off By Ad Downturn

After a protracted and uncertain few months of negotiation, the £15 million sale of UBC Media’s commercial division to US radio group Global Traffic Network has finally fallen through due to a rapidly deteriorating radio ad market.

GTN had asked for an extra two weeks to consider the “recent changes in the UK radio industry” and had planned to sign on the dotted line on 17 October, though the whole thing was originally supposed to be completed in June. But, in a trading update to the market today, UBC said: “Both parties have concluded that the current market conditions mean that a deal in the form originally envisaged will not be completed.” What sound like quite desperate discussions are continuing which “may or may not” lead to a deal and a further announcement has been promised. Under terms of the deal, it seems GTN has already given UBC a £350,000 deposit, refundable if the deal falls through.

UBC COO John Quinn told paidContent:UK earlier this month: