RTL’s acquisition of a 100% shareholding in Five earlier this week has sparked rumours of a takeover bid from the company for Telewest’s programming arm, Flextech.
RTL secured complete control of Five after agreeing with United Business Media to acquire the outstanding 35.4% shareholding for £247.6 million (see
RTL Seizes Full Control Of Five).
The transaction is expected to be finalised by the autumn, although it remains subject to regulatory approval from competition watchdogs.
Rumours amongst city analysts now suggest that RTL will focus on Five’s multichannel strategy, with the broadcaster now the only terrestrial channel not to own digital sister stations.
Competition for control of Flextech is expected to be fierce, however, with Five set to face heavyweight broadcasters such as Channel 4 and ITV if a bid goes ahead.
The sale of Flextech is expected by Telewest ahead of a merger with ntl later this year, putting a number of high-profile digital channels, such as Living TV, Bravo, Trouble and Challenge up for grabs. The company also commands a 50% stake in UKTV – a joint venture between Telewest and the BBC.
The UKTV channels are seen by many as the jewel in Flextech’s crown, with its nine subscription services, including UKTV Gold, UKTV Drama, UKTV Style, UKTV Food and UKTV History representing some of the UK’s premium broadcast offerings.
Five refused to comment on its intentions towards Flextech, although it has been widely expected to enter the digital broadcasting market for some time. Rumours have suggested that the broadcaster is planning a children’s TV channel, built upon its successful Milkshake brand, masterminded by Nick Wilson, controller of children’s programming at Five.
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