Beeb.com Minority Stake May Go To Flextech Or NTL

The upcoming sale of a minority stake in beeb.com, the commercial BBC internet service, has given rise to speculation that Flextech or NTL will bid for a stake of up to 30 per cent. Earlier this year the BBC denied that it was going to float the service (see BBC Denies Plans For Worldwide Sell Off), but yesterday a spokesman from BBC Worldwide confirmed “We are looking for a joint venture partner, and have had some interesting offers.” Refusing to name the companies involved, however, he said that claims made in the national press were “based on speculation and rumour”.

NTL has been developing its interactive TV and internet services recently (see NTL Launches Free Internet Service Ahead Of Schedule). It is also awaiting regulatory approval to merge with Cable & Wireless (see Government Clears NTL/CWC Merger), which would form the largest cable group in the UK. The company refused to comment on whether it was involved in a bid. Flextech also refused to confirm its interest in the beeb.com stake. However, it hinted that given its existing relationship with the BBC through UKTV (see Flextech And The BBC Finally Shake Hands), a bid would be a logical move.

Beeb.com develops commercial services, including on-line shopping from BBC programmes such as Top of the Pops and Top Gear. It is not yet clear whether or not the role taken up by the new stake-holders would be participatory, and BBC Worldwide are not expecting to put out a statement for the next three to four weeks. Money raised from the sale, which some have estimated could be as high as £1m, is likely to go towards the target imposed by the Government of £1.2bn. This is to be raised by the BBC over seven years through measures including commercial activity.

BBC Worldwide: 020 8576 2000