Discovery and BSkyB reportedly set to purchase Channel 5

Richard Desmond, founder of publishing and television group, Northern & Shell, has reportedly sold Channel 5 to Discovery Communications and BSkyB in a deal worth £350 million.

A report in Broadcast on Tuesday said BSkyB and US-based Discovery Communications are set to announce the acquisition imminently after months of speculation.

After a bidding war that Broadcast previously reported involved up to 20 parties, Discovery is thought to have a 70% share of the deal with BSkyB taking the remaining 30% share to handle the advertising.

Broadcast says it understands the deal was agreed in principle last week and closed on Monday – with the £350 million sale only half of what Richard Desmond – who bought Channel 5 in 2010 for £103.5 million – wanted for the channel.

However, commenting on the news, a Channel 5 spokesperson said: “We have a number of bids as expected, which we will evaluate with our advisors over the next few days…certainly no deal has been done.”

Discovery Communications, which owns brands including the Discovery Channel and Animal Planet, has global operations offering 28 network brands on more than 100 channels and broadcasts to 1.5 billion subscribers.