Viacom Preparing Bid For Flextech

American media giant Viacom is the latest broadcaster to show interest in Telewest’s Flextech television business, which is believed to be on the auction block ahead of the cable firm’s merger with rival ntl.

The US-based group joins other possible bidders, including ITV, BSkyB, Discovery Communications and RTL Group according to this morning’s Financial Times.

A successful bid for the company would need to meet or exceed Telewest’s valuation of Flextech, which currently stands at £1 billion.

Speculation surrounding the sell-off has grown in recent months, with BSkyB believed by some to be preparing a bid in order to keep Flextech’s channels off the Freeview platform.

However, mutterings over the future of Telewest’s TV arm are nothing new, with debates over a possible sell-off having run since 2002 (see Singer: Telewest Considering Disposal Of Flextech).

The latest round of rumours have more substance, however, with Telewest entering into serious negotiations to merge with ntl – a move which would require some asset stripping and a more streamlined business model (see Cable Giants Begin Merger Talks).

According to the FT, Viacom is a serious contender in the race for control of Flextech, with executives from the American firm planning to visit Flextech’s operations and assess its value for themselves.

Yesterday saw Mark Howe, managing director of interactive digital sales (ids), the advertising sales house of Flextech Television, announce his resignation from the company after almost 13 years. The company’s decision not to replace their outgoing MD has further fuelled speculation that a sell off of Flextech is imminent (see Howe Steps Down As ids Managing Director).

Telewest: 0845 142 0000 www.telewest.co.uk Viacom: 020 7478 5240 www.viacom.co.uk