Absolute Radio no longer for sale

Absolute Radio is no longer up for sale after its India-based owner opted to give the struggling station its "long-term backing".

TalkSport parent company UTV Media and Sir Richard Branson's Virgin Group were thought to be considering bids for Absolute after The Times of India Group announced a strategic review of the business in April.

However, it is understood that all suitors have baulked at the asking price for the station, thought to be around £20 million.

The Times of India Group has today officially announced the completion of its review of Absolute Radio and confirmed its "long-term backing and confidence" in the business.

Ravi Dhariwal, the chairman of Absolute Radio and chief executive of Times of India, said: "Absolute Radio has demonstrated great digital innovation, thought leadership and has significantly grown its business in the last 12 months.

"We have great confidence in the British digital economy, in the One Golden Square team and in Absolute Radio's senior management as it focuses on driving significant revenue growth in 2012 and we look forward to continuing to invest in the business for many years to come."

Absolute Radio saw its audience plummet after its rebrand from Virgin Radio following the acquisition by Times of India Group in 2008.

Its audience slumped even further to 1.38m listeners in the final quarter of 2010, down from 2.35m in the final three months as Virgin Radio.

However, the station has since recovered to around 1.6m, thanks to the signing of high-profile presenters such as Frank Skinner and the acquisition of Premier League football rights.

As part of its strategic review, Absolute has pledged to increase its revenue by 32% year-on-year in the third quarter of 2011, and is thought to be targeting breakeven by 2012.

Absolute Radio chief executive Donnacha O'Driscoll said: "As we head towards our third birthday, One Golden Square continues to lead the radio industry. We have exciting plans afoot, including new launches - this business is just getting started."