ITV could sell SDN, its digital television business, as it looks to raise extra funds.
According to a report on MediaGuardian.co.uk, the sale could come as ITV executive chairman Michael Grade finalises plans to raise cash as the company faces falling advertising revenues and pressure from servicing its debt and pension fund.
MediaGuardian.co.uk says that the sale of SDN – which operates the Freeview multiplex that hosts Five’s channels, as well as the shopping channel QVC – could raise about £20 million for the broadcaster.
Although the business, which brought in revenues of £36 million in 2007, is profitable, it is not seen as central to ITV’s core identity.
Arqiva, which already owns the other two Freeview commercial multiplexes, could bid for SDN, although any deal would probably be investigated by competition authorities.
ITV bought SDN for £134 million from United Business Media and S4C in April 2005.
