Bertelsmann May Sell Channel 5 Stake

Channel 5 could be sold off as part of a restructuring programme at the German media group, Bertelsmann, according to a report in today’s Financial Times.

Gunter Thielen, the new chairman and chief executive, is expected to conduct a thorough review of the conglomerate’s worldwide operations with a view to selling off unprofitable divisions.

Bertelsmann has a 64.6% share in Channel 5 through its ownership of the RTL Group but in five years, it is yet to break even. Nonetheless, the station’s audience share has now increased to 6.4% (see City News) and it is predicted to turn in profits in the near future.

If Channel 5 were to become available, Rupert Murdoch’s News Corp is likely to be among the potential suitors. However, he would have to delay any bid until next November when the restriction on newspaper publishers owning UK television channels is to be lifted.

Bertelsmann, which parted company with former chief executive Thomas Middelhof this week, is also believed to be considering the sale of US titles at its magazine publishing arm, Gruner & Jahr.

Subscribers to MediaTel Insight can access more national and international media analysis, forecasts and news. For subscription details please visit the site.