DJ buys Virgin Radio

DJ Chris Evans last night bought Virgin Radio from Richard Branson. Mr Evans's bid, reportedly worth £80 million sterling, was accepted ahead of a bid by Capital Radio. The deal will create the Ginger Media Group, which will be responsible for producing Mr Evans's Channel 4 show TFI Friday, as well as Virgin Radio. Mr Branson said: "The maverick in me prefers the idea of Chris Evans to Capital Radio. The station will be in good hands."

Under the deal, Richard Branson will continue to own a 20 per cent stake in Virgin Radio and retain a seat on the board. Mr Evans, along with his Ginger partners and producer John Revell, will own 55 per cent of the station and deal funders Apax will take a 20 per cent stake. Existing Virgin Radio managers will also keep key executive roles. Last night's announcement comes as Capital Radio's offer of an £87 million merger remains stalled by a Monopolies and Mergers Commission inquiry.