A report in The Independent says that the new company would have its own stock market listing, worth in the region of £600m.
It would have a higher rating on the stock market than Emap's current listing, as radio-only companies are seen as faster growing. Broadcasting shares are coming even more into favour as the draft communications bill has paved the way for consolidation in the industry, and a rash of takeovers are expected.
Emap's radio assets include Magic FM and Viking FM, and it is one of the three biggest radio operators in the country. It has not commented on the spin-off story, but analysts have said that the move would give Emap the ability to take part in the consolidation process without having to make a large cash acquisition. No announcement from Emap is understood to be imminent.
Full-year turnover at Emap Performance, the division that owns Magic and Kiss, dropped 1% to £139m for the year to March 2002, with radio revenues down 8%.
Last month, Emap launched a new Smash Hits-branded digital radio station based on its successful teenage music magazine.
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