BBC Broadcast Gets Go Ahead For Sale

An advert for BBC Broadcast Limited has been placed in the global Financial Times and UK trade magazine Broadcast, signaling the beginning of the sales process for the BBCs commercial subsidiary.

BBC Broadcast is one of Europe’s leading multimedia producer and distributors, providing a comprehensive range of services for content across all media, from television to mobile phones.

The sale follows on from the Corporation’s internal review of its commercial businesses, which concluded that, although the services provided by BBC Broadcast are vital to the BBC, they did not need to continue to be owned by them.

The BBC is positive that it will be able to have a strong relationship with BBC Broadcast after it is sold, with the new owner providing the business with new opportunities for growth which are not available whilst it is owned by the BBC.

The sale is subject to necessary approvals by the BBC Board of Governors and Tessa Jowell, the Secretary of State for Culture, Media & Sport, and will see a seven-year contract with the purchasers of BBC broadcast put in place.

Commenting on the sale, Peter Phillips, director of business development said: “The BBC has a great relationship with BBC Broadcast and we are committed to finding a long-term partner that can not only continue to deliver the outstanding quality of services back to the BBC, but also help BBC Broadcast continue to develop in new markets.”

Pam Masters, managing director of BBC Broadcast added: “Since incorporation, BBC Broadcast has established itself as specialists in the delivery and promotion of digital media. Merging our BBC heritage with technical skills and an understanding of the business models content owners, and the way people actually consume content.”

It is expected that the sale of BBC Broadcast to the successful bidder will take place by the end of the summer, subject to contact negotiations and regulatory approvals. The BBC has also stated that full consultation will be held with trade unions throughout the sale process.

The nation’s broadcasters recently welcomed Tessa Jowell’s proposals for the BBC, revealed in her green paper entitled A strong BBC, independent of government, which recommended that the Corporation’s governors be replaced with a new “BBC Trust”, while the licence fee continues to provide funding for another ten years (see Broadcasters Welcome BBC Green Paper Proposals).

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

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