RTL, the pan-European broadcaster, plans to retain its stake in UK terrestrial station, Five, despite the Government’s plans to clear the way for non-EU investors to acquire the business.
The relaxation of the media ownership regulations has prompted fierce speculation that RTL may decide to sell its 65% stake in the channel to Rupert Murdoch’s News International, once the Communications Bill comes in to force next year (see
Government Faces Growing Threat From Rebel Peers).
However, RTL’s chief executive, Gerhard Zeiler, has dismissed the suggestions, telling the Financial Times: “We are not sellers of Five. Anyone who wants to get his hands on Five, it’s fine by us, but we won’t sell.”
Zeiler also indicated that RTL, part of Germany’s Bertelsmann media empire, is keen to increase its stake in Five and would bid for the remaining 35% share currently owned by Lord Hollick’s United Business Media (UBM) should it come up for sale. He said: “If [Lord Hollick] wants to sell, he would want to get more than one party interested – and we would defiantly want to be in there.”
The news will be welcomed by the House Of Lords, which, under the leadership of Lord Puttnam, has threatened to vote down the Communications Bill unless the Government accepts a proposal to impose public interest tests on US media groups wanting to buy Five.
Reports suggest that Lord Puttnam is currently working on a draft of the proposal, which could end the deadlock over the relaxation of the media ownership rules (see Puttnam Plan Could End Media Ownership Deadlock).
Rupert Murdoch has repeatedly denied any interest in buying Five, but peers are concerned that plans to allow the media mogul to extend his empire into UK terrestrial TV would lead to him achieving ‘unprecedented dominance’ in the newly deregulated media landscape.
