RTL Hires JP Morgan To Help Boost Stake In Five
Pan-European broadcasting giant RTL has hired investment bank JP Morgan as it considers the possibility of increasing its majority shareholding in the UK’s smallest terrestrial broadcaster, Five.
It is understood that RTL will ask the bank to consider all the options for its stake in Five, including off-loading its shareholding if there is deemed to be little opportunity for expansion in the UK.
The bank will also look at the feasibility of Five merging with another broadcaster, such as Channel 4. Another option would be for RTL to buy out the majority stake held by United Business Media, or it could simply sell out of the company entirely.
RTL chief executive, Gerhard Zeiler, recently reaffirmed RTL’s commitment to Five, but admitted the channel would need to forge closer links with commercial rivals such as Channel 4 or BSkyB if it is to survive in the increasingly competitive multi-channel environment (see Five To Link With Rivals For Survival In Digital Age).
According to a report in today’s Times, JP Morgan will carry out a full appraisal of the British broadcasting market to assess whether there is any value in RTL remaining a long-term shareholder in Five.
RTL is understood to have already held merger talks with the publicly owned Channel Four and cable operator Telewest about potential mergers with Five. However, a large scale merger of this size would be hard to orchestrate and talks are not thought to have advances to the due diligence stage (see Channel 4 Confirms Merger Discussions With Five).
Bertelsmann, the company that owns RTL, is seen as more likely to buy, rather than sell Channel Five. Last year chief executive, Gunter Thielen, vowed to maintain the media group’s stake in the broadcaster, despite Government plans to clear the way for non-EU investors to acquire the commercial station (see RTL Pledges To Retain Stake In Channel Five).
Rupert Murdoch, the chairman of BSkyB and chief executive of the News Corporation, has also previously ruled out the possibility of making a bid for the terrestrial channel, which commands a 6.5% share of overall viewing in the UK.
Five: 020 7550 5555 www.five.tv
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