BBC Considers £1 Billion Sale Of Commercial Arm
The BBC is believed to be considering a £1 billion sale of almost all of its commercial operations in an attempt to bring the Corporation closer to its core public service remit in the run up to charter review in 2007.
The BBC’s commercial activities range from Teletubbies merchandise to studio facilities and could be worth more than £1 billion if sold in their entirety. Last year the commercial outfit generated around £141 million in profit for the Corporation.
An internal review led by finance director, John Smith, will be complete at the end of the year and the BBC will appoint banking advisors if it decides on a sale. BBC director general, Mark Thompson, said yesterday: “Nothing is ruled in and nothing is ruled out”.
The plan was confirmed yesterday as the BBC published its annual report and accounts which showed that it lost nearly £250 million after a year in which its audience share slipped in both television and radio (see Governors Order Investigation Into BBC One Programming).
The BBC is under pressure to deliver greater efficiencies as it seeks a review of its royal charter in 2007, which would guarantee the licence fee for a further decade. The Corporation have set a target to achieve £3.3 billion in savings before 2007, but so far they have only achieved £1.7 billion.
It looks likely that any effort to restrict the activities of BBC Worldwide, which is by far the largest part of the broadcaster’s commercial activity, will be strongly resisted. The Corporation believes the business is Britain’s strongest competitor to American giants such as Disney.
Meanwhile in a separate move, the BBC’s board of governors yesterday ordered a wide-ranging investigation into BBC One’s peak time schedules amid growing public concern about programme quality and criticism over its increasingly populist approach to scheduling (see Governors Order Investigation Into BBC One Programming).
BBC: 020 8743 8000 www.bbc.co.uk
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