BBC and C4 in talks to buy stake in UKTV

The BBC and Channel 4 are understood to be in negotiations to buy Virgin Media’s stake of UKTV, which owns channels including Gold and Dave.

BBC and Channel 4 are keen to acquire Virgin’s 50% share in UKTV, which is expected to cost between £400 million and £450 million, to form part a wider “UK content company”, according to reports.

The idea being considered would see BBC Worldwide’s UK operations brought together in a commercial joint venture with Channel 4 and potentially Channel Five.

An Ofcom source said: “The BBC and Channel 4 are talking about a joint venture. It is very welcome and it is very significant.”

A new body would immediately bring about cost savings for both organisations, while the profits would be split.

In a statement, the BBC said: “Worldwide continues to talk to Channel 4 about the value of partnerships, specifically some of Worldwide and Channel 4’s UK assets working more closely together.”

Yesterday, culture secretary Andy Burnham said he favours a partnership between BBC Worldwide and Channel 4, as long as it “continues to meet the needs of the BBC as well as releasing value and resource to create a new model with Channel 4” (see Burnham backs Channel 4).

Ofcom’s long-awaited PSB blueprint, which was published yesterday, encouraged Channel 4 to develop a “deeper and more integrated partnership” with BBC Worldwide (see Ofcom rejects top-slicing the BBC’s funding).

BBC: 020 8743 8000 www.bbc.co.uk Channel Four: 020 7396 4444 www.channel4.com