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Guardian Media Group has received a number of offers for its radio business, which include the Real Radio and Smooth Radio networks, with the top offer tabled thought to be about £50m.
GMG, which has built up the UK's third largest radio group with acquisitions totalling in excess of £200m, is not thought to have officially raised the "for sale" sign over GMG Radio.
However, it is understood that GMG has received three offers for its radio assets, which were valued on GMG's balance sheet as worth £118.9m in the group's most recent published financial report to 31 March last year, with senior executives now mulling if it is the right time to look to offload the radio stations. GMG also publishes the Guardian and MediaGuardian.
The most likely trade buyers to have submitted bids are Global Radio, the parent company of brands including Capital, Heart and Classic FM, and Talksport-owner UTV Media. It is understood that a third bid has come from an venture capital firm that aims to bring in its own management if its bid is successful.
Bauer Radio, which owns stations including Kiss and Magic, is not thought to be in the running.
Global Radio, the largest commercial radio operator in the UK, has the most financial clout and is thought to have submitted the largest offer.
The company already handles the national advertising contract for GMG Radio's stations and would be able to make significant cost savings.
However, the acquisition could lead to competition issues in certain parts of the UK, with Global potentially having to sell off some of GMG Radio's assets to appease regulators.
Revenues at GMG Radio fell 6% year-on-year to £47.1m in the 12 months to the end of March 2011, according to the most recent publicly available figures.
GMG Radio reported a £4.1m pre tax loss with earnings before interest, tax, depreciation and amortisation of just over £2m.
The performance of the company is thought to have improved over the last year. Revenues are thought to be up a touch in the year to the end of March 2012, with ebitda growing to more than £3m.
GMG will almost certainly make a significant writedown to the £118.9m carrying value of the radio assets when the group reports its financial results for the year to the end of March. The company has made several writedowns in the past.
GMG Radio was launched under John Myers in 1999 and launched its first station, Real Radio Wales, in October 2000. Myers was replaced as chief executive in March 2009 by Stuart Taylor.
GMG declined to comment.
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