Rachel_Sandford
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In an attempt to generate funds for investing in content, given that its license fee has been frozen, BBC Magazines has agreed to a £121million deal with Exponent which will see 33 of its 34 magazines move from the former to the latter.
The deal includes the outright sale of 11 non-BBC branded titles that are “less closely aligned to the BBC,” such as Gardens Illustrated, Olive, and Radio Times, which the company first started publishing in 1923. Around 18 magazines magazines will be published by Exponent under license, meaning the BBC will not retain ownership but will keep a “strong continuing editorial agreements under licensing agreements.” These include Gardener's World and BBC Wildlife. Finally, magazines like Top Gear, Good Food, and Lonely Planet will be published by Exponent under a contract publishing agreement, meaning BBC retains ownership.
“The deal announced to day offers the best prospects for the magazines business to continue on this path of success, while BBC Worldwide pursues a strategy increasingly focused on international video and digital service,” said chief executive of BBC Worldwide, John Smith. “The consumer magazines market faces a number of challenges, and this transaction brings a focus and degree of investment that BBC Worldwide alone is unable to provide.”
According to BBC, most of the staff of the magazines will be transferring to the new company, and their commercial arm will be creating a small in-house group that will oversee editorial compliance, management, and the contractual relationship between the BBC and Exponent.
“Exponent invests exclusively in market-leading businesses which have strong growth potential and great people. We believe that BBC Magazines is such a business,” said Richard Lenane, Exponent director.
Exponent used to own the Times Educational Supplement, and currently owns media job service Gorkana, www.thetrainline.com, and Magicalia; a publishing group that publishes a range of motorcycling, outdoor, and parenting magazines. The company recently acquired Dovetail, the subscription fulfillment operation that Dennis Publishing runs alongside BBC, and Frontline, a distribution joint venture between Bauer Media, Haymarket Publishing, and BBC. Exponent has also revealed that they are acquiring specialist publisher Origin, in which BBC Magazines holds a 39% stake.
Sources reveal that the BBC intends to acquire the remaining 61% of Origin then transfer ownership to Exponent. Origin launched in 1997, and it owns over a dozen titles, including Perfect Wedding, Koi, and 220 Triathlon.
The deal between the BBC and Exponent as already been approved by BBC Trust, but the final agreement needs the go-ahead of the Office of Fair Trading. It is expected to go through in the autumn. In the meantime, BBC Worldwide is selling it's 50% stake in Worldwide Media Ltd., which distributes Grazia, Hello, Top Gear, and Lonely Planet in India. Buyer of its stake is Times of India owner, Bennet, Coleman and Co. Ltd.
The deal includes the outright sale of 11 non-BBC branded titles that are “less closely aligned to the BBC,” such as Gardens Illustrated, Olive, and Radio Times, which the company first started publishing in 1923. Around 18 magazines magazines will be published by Exponent under license, meaning the BBC will not retain ownership but will keep a “strong continuing editorial agreements under licensing agreements.” These include Gardener's World and BBC Wildlife. Finally, magazines like Top Gear, Good Food, and Lonely Planet will be published by Exponent under a contract publishing agreement, meaning BBC retains ownership.
“The deal announced to day offers the best prospects for the magazines business to continue on this path of success, while BBC Worldwide pursues a strategy increasingly focused on international video and digital service,” said chief executive of BBC Worldwide, John Smith. “The consumer magazines market faces a number of challenges, and this transaction brings a focus and degree of investment that BBC Worldwide alone is unable to provide.”
According to BBC, most of the staff of the magazines will be transferring to the new company, and their commercial arm will be creating a small in-house group that will oversee editorial compliance, management, and the contractual relationship between the BBC and Exponent.
“Exponent invests exclusively in market-leading businesses which have strong growth potential and great people. We believe that BBC Magazines is such a business,” said Richard Lenane, Exponent director.
Exponent used to own the Times Educational Supplement, and currently owns media job service Gorkana, www.thetrainline.com, and Magicalia; a publishing group that publishes a range of motorcycling, outdoor, and parenting magazines. The company recently acquired Dovetail, the subscription fulfillment operation that Dennis Publishing runs alongside BBC, and Frontline, a distribution joint venture between Bauer Media, Haymarket Publishing, and BBC. Exponent has also revealed that they are acquiring specialist publisher Origin, in which BBC Magazines holds a 39% stake.
Sources reveal that the BBC intends to acquire the remaining 61% of Origin then transfer ownership to Exponent. Origin launched in 1997, and it owns over a dozen titles, including Perfect Wedding, Koi, and 220 Triathlon.
The deal between the BBC and Exponent as already been approved by BBC Trust, but the final agreement needs the go-ahead of the Office of Fair Trading. It is expected to go through in the autumn. In the meantime, BBC Worldwide is selling it's 50% stake in Worldwide Media Ltd., which distributes Grazia, Hello, Top Gear, and Lonely Planet in India. Buyer of its stake is Times of India owner, Bennet, Coleman and Co. Ltd.
