BBC Considering Flotation Of Worldwide Arm

The BBC committee reviewing the future of its commercial arm, BBC Worldwide, may consider floating a stake on the stock market, according the press reports over the weekend.

The Corporation has primarily been discussing how to set up joint ventures for its publishing, distribution and channel arms, in a move would allow it to maintain control of operations, whilst providing a guaranteed stream of income.

However, a report in the Independent On Sunday claims that a radical second approach is also being considered, which would see a stake in BBC Worldwide sold-off or floated on the London stock market.

Speculation suggests that whatever route the BBC decides to go down, it would want to retain a sizeable stake in its money-making business. By selling Worldwide, the Corporation would effectively be losing the right to receive a share of operating profits, which were in excess of £37 million last year.

The committee is due to meet with the BBC’s director-general, Mark Thompson, during the first two weeks of October with its provisional recommendations. Thompson is then expected to make his final recommendation on BBC Worldwide to the Government by the end of the year.

The much anticipated sale has already attracted attention from numerous broadcasters, venture capital groups and investment banks. It is widely believed that any sale would carry a £1 billion price tag. Earlier this year, Thompson said: “We are looking at BBC Worldwide with open minds but it is not a foregone conclusion that we are talking about large-scale sell-offs.”

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

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