"BBC Worldwide to buy out Virgin's share of UKTV"

BBC aims to buy out Virgin's UKTV share

BBC Worldwide, the commercial arm of the BBC, is trying to buy cable group Virgin Media's share of UKTV, the TV channel business that the two organisations jointly own.

In a sign of its intent to expand significantly its commercial activities, BBC Worldwide recently made a preliminary approach to Virgin.

Virgin Media's investment in the 50/50 joint venture is valued on the company's books at £370m, including a £150m loan. Formal talks between the two parties have not commenced.

The joint venture includes eight UKTV-branded channels and Dave, a channel whose line-up of Catherine Tate, Jeremy Clarkson and Stephen Fry shows is designed to appeal to young males. Unlike the BBC's public service channels, UKTV stations take advertising and charge a subscription fee. BBC Worldwide is hoping to extend its commercial activities in the UK further and wants to increase investment in the channels.

That would be quite a controversial move - we know BBC Worldwide and the BBC we pay for are technically seperate entities, but I think even BBC Worldwide fully owning commercial channels showing BBC programmes isn't the wisest of moves - and certainly puts BBC3 and News 24 especially under pressure.


Also unless they're really strapped for cash I don't see why Virgin would want to sell up as though not fully owned, I'd have thought UKTV is pretty much as important to Virgin as their (fairly small) fully owned suite of channels.

This makes complete sense for the BBC and its commercial arm, BBC Worldwide.

Once a BBC commissioned programme has first aired on BBC 1/2/3 or 4, the BBC can only repeat that programme so many times, after which the programme is of little value to the corporation. Therefore, passing over the programme to its commercial arm to earn fees through subscription tv is real business sense.

BBC Worldwide Limited is an independent company owned by the Corporation. This company will fund any potential acquisitions from its own funds, therefore the arguement re: BBC3, BBC News 24 and their funding issues is non existant.

Given the amount of debt on Virgin's balance sheet, the divestment of its share in UKTV could be a welcome cash fillup. Plus, it would be offloading it to a 'friendly' company in the guise of BBC Worldwide.

Also, UKTV is crying out for investment. In particular UKTV Gold is pretty much knackered. Yes, this years rebrand has freshened it up a bit, but it will need more than just new idents.

And finally, where does BBC Worldwide's dividend go to?....back to the Corporation. It will be Worldwide that fills some of the funding shortfalls of its parent corporation.

I also think UKTV Brand all need overhaul

DAVE is the first one:

but other need to happen:

UK gold Classic!
UK drama should get all those US programmes

It was more than 'just idents' though, they invested £10 million this year, that buys a lot of new programming: http://uktv.co.uk/press/?uktv=news.item&aid=585903.

Although I must say though that I watch it a lot less than I used to since Dave started, not sure if that's because all the good stuff has been shunted over to it or because I'm more aware of which one I'm watching now!




Indeed, owning all of UKTV means that they'll get all the profits from UKTV!

That Russell Brand's bloody everywhere. And now his own channel? Tsk.