Discovery drops out of Channel 5 bid

Despite reports earlier this week that Discovery Communications, in partnership with BSkyB, had made a deal to buy the UK’s Channel 5, fresh reports today say the US firm has dropped out of the bidding process altogether.

Richard Desmond, founder of publishing and television group, Northern & Shell, was reported to have sold Channel 5 to Discovery and the Rupert Murdoch owned BSkyB in a deal worth around £350 million.

However, a report in the Guardian on Thursday suggests that Discovery, which owns brands including the Discovery Channel and Animal Planet, has withdrawn its bid based on price concerns.

Desmond – who bought Channel 5 in 2010 for £103.5 million – reportedly wants around £700 million for the channel.

The original offer – only half of what Desmond wanted – would have seen Discovery own a 70% share, with BSkyB taking the rest to handle the advertising.

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.”

The Guardian reports that Viacom, owner of MTV, is now one one of the few remaining potential buyers.