Virgin Media puts stake in UKTV up for sale

Virgin Media has put its 50% stake in UKTV up for sale, with an aim to get between £350 million and £700 million. The 50% share includes outstanding loans of £116 million.

Virgin Media has apparently appointed UBS and Goldman Sachs to find a new owner for the UKTV stake, after stating that the TV content business is “not a strategic investment” for the company.

In the second quarter of the year, Virgin Media received an income of £7.1 million from UKTV.

UKTV is the owner of channels including Dave, Gold, and Good Food, and was formed in 1997 as a joint venture with BBC Worldwide.

Last year, Channel 4 was considering buying the Virgin Media stake, as part of a commercial partnership with BBC Worldwide, but these talks did not result in a purchase.

BBC Worldwide is now expected to take full control, as it has first refusal and can exercise control over the buyer of Virgin Media’s 50% stake.

This news follows BSkyB’s acquisition of Virgin Media Television, which was completed in July this year, for £160 million.