Global Media Giants Line Up For BBC Worldwide
The BBC has confirmed that it is talking to some of the world’s biggest media companies, including Bertelsmann, Time Warner and Disney, about the future of its commercial operation, BBC Worldwide.
A spokesman for the BBC said that discussions are underway with a number of companies interested in BBC Worldwide, which is currently the subject of a wide-ranging review ordered by director general Mark Thompson. Reports suggest that around 25 organisations have been contacted including ITV, Channel 4 and BSkyB.
However, the Corporation denied speculation that it is considering the sale of its commercial arm, saying: “We are talking to anyone who has a view on our commercial operation, but it is wrong to say that these companies have been invited to bid for BBC Worldwide.”
Thompson also insisted today that a wholesale sell-off of BBC Worldwide is “unlikely” to go ahead, despite widespread interest from a number a major media companies, investment banks and venture capital firms keen to snap up the highly succesful money making arm (see Thompson Plays Down BBC Mergers And Worldwide Sell Off).
Bertelsmann, Time Warner and Disney have refused to comment on their interest in BBC Worldwide, but the outfit is widely regarded as a valuable international asset, having achieved profits before tax and interest in excess of £37m last year.
Reports suggest the division – which sells the overseas rights to BBC programmes, has a 50% stake in the pay-TV broadcaster UKTV and operates several BBC-branded international television channels- could eventually go for up to £2 billion if sold at competitive auction.
The review of BBC Worldwide, which is being led by finance director John Smith, is still in its early stages and is not due to report until the end of the year. It is understood that Rothschild, Deutsche Bank, Morgan Stanley and CIBC have been called in to help examine the business and its potential value.
The BBC has remained tight-lipped on the future of its money-making arm, but Thompson’s comments today suggest that a sweeping restructure and a strategic alliance, rather than an out-and-out sale, is the most likely option. Any recommendations thrown up by the review will have to go through the executive and then be to put to the board of governors.
BBC: 020 8743 8000 www.bbc.co.uk
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