BBC Completes Sale Of Broadcast Division
The BBC has confirmed the sale of BBC Broadcast to Creative Broadcast Services Limited, an Australian consortium comprising the Macquarie Capital Alliance Group and Macquarie Bank.
The deal, which is still subject to approval from the Secretary of State for Culture, Media and Sport, will see the broadcast division leave the overall control of the BBC following long-running negotiations over its future, culminating in its advertisement for sale earlier this year (see BBC Broadcast Gets Go Ahead For Sale).
The decision to sell to Creative Broadcast Services was taken after an “extensive and rigorous evaluation of final bids” by the BBC. John Smith, the BBC’s chief operating officer and executive board sponsor for the deal, explained: “Creative Broadcast Services made the BBC a great offer and showed real capabilities in managing a contractual long-term partnership with a commitment to growing and investing in the business.”
Michael Cook, CEO of Macquarie Capital Alliance Group, added: “BBC Broadcast has state-of-the-art facilities and services delivered by very talented people and is in a strong position to take advantage of growing opportunities in Europe as well as developing demand from new communication media. The BBC Broadcast management team has extensive experience and strong industry relationships across all aspects of the business.”
The sale follows the BBC’s review of commercial businesses last year (see BBC Considers £1 Billion Sale Of Commercial Arm), which was itself undertaken in response to calls from commercial rivals to reduce the Corporation’s aggressive attitude towards scheduling and head to head programming (see IPA Report Deplores Aggressive And Commercial BBC).
The BBC’s internal review team concluded that, whilst the services provided by BBC Broadcast are vital to the Corporation, it was not necessary that the division remain owned by the BBC.
The new arrangement will see Creative Broadcast Services provide BBC Broadcast with “opportunities for growth which are not available whilst owned by the BBC”. However, an on-going contract with the BBC will provide stability for the Corporation, ensuring its requirements continue to be met.
Pam Masters, managing director of BBC Broadcast welcomed the move, stating: “I am delighted with the BBC’s decision for Creative Broadcast Services to acquire BBC Broadcast. The Board and I have built this company from an internal BBC department through incorporation and three successful years of trading under BBC ownership. It is now time for the business to flourish under new ownership with increased investment.
“We feel confident the decision is right for our business and our staff, and I look forward to working with them to fulfil the potential of this fantastic business.”
Peter Phillips, director of business development and head of the sale team for BBC Broadcast, added: “This has been a really competitive process and I am delighted to see Creative Broadcast Services acquiring BBC Broadcast. This sale represents excellent value for licence fee payers and a secure future for some of the most vital services supporting the BBC’s output.”
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