BBC Announces Siemens As Winning Bidder In Tech Sell-Off

The BBC has announced an end to month-long wrangles over the future of its technology division with the selection of Siemens Business Services as the new owner of BBC Technology.

The sale must now receive approval from the BBC governors, culture secretary Tessa Jowel and the European Commission under the terms of its merger regulations. It is expected that the deal will complete its final stages by autumn 2004, running for ten years from the date of completion and worth approximately £2 billion.

Under the terms of the deal Siemens will provide the BBC with technology to make and distribute programmes, enabling the Corporation to reduce costs and further streamline its internal processes.

The Corporation said in a statement today: “Siemens Business Services has demonstrated its ability and commitment to invest in technology services and innovation to meet the BBC’s future technology requirements, with significant projected annual cost savings.”

Siemens’ winning bid was chosen by the BBC after meeting its stringent evaluation criteria. Areas in which the company excelled were the scale, resource and funding levels projected over the next ten years, Siemens’ cultural fit and demonstration of valuing people, the bility to deliver best value for money, best value for BBC Technology and the company’s commitment to innovation.

The sale of BBC Technology has come under scrutiny from BECTU, the Broadcasting Entertainment Cinematograph and Theatre Union, which continues to campaign for industrial action amongst its members in BBC Technology. The Corporation stated that it will continue to consult with the union throughout the last phase of the sale. BBC Technology is due to close on Friday.

BBC: 020 8743 8000 www.bbc.co.uk

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