Mergers, Acquisitions and Takeovers Case Study

India’s Times Group's Acquisition of Virgin Radio - A Re-Branding Exercise?

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Abstract:
Bennett Coleman & Company Ltd is India's largest media group which owns the popular Times of India group. In June 2008, Times Infotainment Media Ltd, the wholly owned subsidiary of BCCL and the largest broadcaster in India bought the UK-based Virgin Radio network from Scottish Media Company. Virgin Radio holds an FM licence for London as well as a national AM licence. This entertainment network has a wide subscriber base of over 2.7 million, in the UK. Through this acquisition TIML hopes to get an entry into the UK radio market and has plans to explore further in the entertainment arena. As per the deal, TIML will get control over Virgin Radio's assets in the UK and can use the 'Virgin Radio' brand name for 90 days after which they have to carry out rebranding of their radio network. Accordingly on 28 September 2008, TIML recast Virgin Radio as Absolute Radio as a part of the post-acquisition strategy. Will this rebranding of the iconic Virgin brand be successful?

Pedagogical Objectives:

• To tstudy the dynamics of the Indian media industry
• To analyse the rationale behind the rebranding exercise by TIML.
• To comprehend the challenges faced by TIML in the rebranding of Virgin Radio.

Keywords : UK radio industry, Business divisions of Times Group, Virgin Radio, Times Group's acquisition, Rebranding, Prospects and challenges

Contents : 
The Times of India Group –A profile
Subsidiary companies of Times Group
Acquisition of Virgin Radio by Times Infotainment Media Ltd (TIML)
TIML’s Re-branding exercise - Challenges Ahead
Virgin Radio’s shift to Absolute Radio Logo
Programmes in Absolute Radio
Absolute Radio