Jasmeet_87
12th May, 2009, 01:09 PM
Virgin Media is understood to have drawn up a shortlist of three potential buyers for its VMtv channels.
Channel 4, Time Warner and BSkyB are understood to have made it through to the second round of the auction for VMtv, whose channels include Bravo and Living, home to such programmes as Britain?s Next Top Model.
Sources said that the cable operator, which is seeking to slash its hefty debt pile, has opted to sell the channels separately from its other television asset, its UKTV joint venture with BBC Worldwide. That will be sold off at a later stage.
The total fetched for both assets is expected to be about half the ?800 million mooted during a previous failed sale attempt three years ago.
City sources said that offers lodged for VMtv were about ?80 million. However, sources close to the auction said that they had come in at a much higher level and that Virgin was ?confident? about getting a good price. Some bidders, such as Liberty Global, have been thrown out of the race.
Virgin Media put its content business on sale in March, appointing UBS and Goldman Sachs to advise it. VMtv?s turnover was ?121.8 million last year, although no profit figure was broken out. Its half of UKTV generated ?38.1 million.
The BBC has first refusal on buying the other half of the more valuable UKTV. Home to Dave, Watch and G.O.L.D., VMtv is valued at just over ?350 million in Virgin Media?s accounts.
Channel 4 is interested in merging VMtv into a larger joint venture with BBC Worldwide, the corporation?s commercial unit, if ministers allow the state-owned broadcasters to link up as part of the Digital Britain process. If the BBC bought Virgin Media out of UKTV, those channels would be folded into the venture as well.
Virgin Media and Sky, which is 39.1 per cent owned by News Corporation, parent company of The Times, declined to comment.
Three buyers in running for Virgin Media’s TV channels - Times Online (http://business.timesonline.co.uk/tol/business/industry_sectors/media/article6268940.ece)
Channel 4, Time Warner and BSkyB are understood to have made it through to the second round of the auction for VMtv, whose channels include Bravo and Living, home to such programmes as Britain?s Next Top Model.
Sources said that the cable operator, which is seeking to slash its hefty debt pile, has opted to sell the channels separately from its other television asset, its UKTV joint venture with BBC Worldwide. That will be sold off at a later stage.
The total fetched for both assets is expected to be about half the ?800 million mooted during a previous failed sale attempt three years ago.
City sources said that offers lodged for VMtv were about ?80 million. However, sources close to the auction said that they had come in at a much higher level and that Virgin was ?confident? about getting a good price. Some bidders, such as Liberty Global, have been thrown out of the race.
Virgin Media put its content business on sale in March, appointing UBS and Goldman Sachs to advise it. VMtv?s turnover was ?121.8 million last year, although no profit figure was broken out. Its half of UKTV generated ?38.1 million.
The BBC has first refusal on buying the other half of the more valuable UKTV. Home to Dave, Watch and G.O.L.D., VMtv is valued at just over ?350 million in Virgin Media?s accounts.
Channel 4 is interested in merging VMtv into a larger joint venture with BBC Worldwide, the corporation?s commercial unit, if ministers allow the state-owned broadcasters to link up as part of the Digital Britain process. If the BBC bought Virgin Media out of UKTV, those channels would be folded into the venture as well.
Virgin Media and Sky, which is 39.1 per cent owned by News Corporation, parent company of The Times, declined to comment.
Three buyers in running for Virgin Media’s TV channels - Times Online (http://business.timesonline.co.uk/tol/business/industry_sectors/media/article6268940.ece)