BSkyB is in discussions with Channel 5 that may lead to the satellite group taking a stake in the terrestrial station, the Sunday Business reported yesterday without naming its sources.
C5 is owned 65% by pan-European broadcaster RTL and 35% by United Business Media (UBM). However, UBM has recently disposed of the rest of its TV assets and now intends to concentrate on its business and technology information interests. It is therefore thought that UBM is looking to dispose of its C5 stake.
It has already been reported that UBM and RTL are at odds over the programming budget that C5 should receive; RTL wants to increase programme investment in order to push the station’s audience share above the 6% level; so far this year it has averaged
Channel 5 has been valued through recent transaction at more than £1 billion, according to analysts at ABN Amro. The recent deterioration in the advertising market – particularly in the television sector – will have reduced this value somewhat.
The move for BSkyB would fulfil Rupert Murdoch’s long-held ambitions to break into terrestrial television. ABN says that such a deal would be unprecedented since the company has so far focused entirely on pay-TV ventures.
