Virgin Media is selling its VMtv cluster of UK satellite and cable channels, as well as its 50% stake in the UKTV branded channels (BBC Worldwide owns the remaining 50%). A clause in the sale contract bars the eventual buyer/s from selling the channels on to any business that is owned or connected to News Corp – and that includes Virgin’s arch-rival B
SkyB.
However, just to complicate things a tad, it is reported that B
SkyB (or indeed News Corp) can themselves bid for the channels directly with Virgin Media.
Media Week, a UK trade mag, states that B
SkyB has already entered the highest bid and quotes a figure of £160m for the channels. Three other majors are also in the bidding including Viacom, Time Warner and Britain’s Channel 4.
The theory behind the strategy is said to be to ensure that B
SkyB “pays top dollar” for the assets. Time Warner is reportedly the main under-bidder.
Source:RapidTVNews
22-07-2009
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