Zee Network Europe to close station and offload UK radio assets

Zee Radio, which focuses on Indian music and culture, was launched in the UK in January 2008 by Bollywood star Shah Ruhk Khan. 

It is the latest in a string of commercial radio closures. Last week, former GMG Radio chief executive John Myers, in a key report feeding into Lord Carter's Digital Britain report, warned that more than 50 stations around the country could be forced out of business without radical measures.

The assets being sold by Zee include a London DAB licence, an AM analogue licence for six hours per day, a DTH (direct-to-home) satellite radio channel, a place on the Sky EPG and an online radio streaming website.

Digital television business specialists Canis Media, who are negotiating the sale, said the assets will be sold individually or as a package.

Ed Hall, Canis Media's chief executive, said a number of UK radio broadcasters and overseas television media companies have already shown an interest in the sale, which is expected to be completed within four weeks.

Zee is India's most popular entertainment brand and claims 500 million viewers worldwide in 167 countries. Govind Shahi, country head, Zee Europe, said the company has been experiencing great success over recent years in its international business and has decided to concentrate on its core television business.

Hall added that, as many media companies look to focus on their core businesses in the current climate, "those that make the early decision to offload peripheral business will survive".