Virgin Media considers sale of TV channels in review

by Darren Davidson, Brand Republic 03-Mar-08, 09:10

LONDON - Virgin Media is carrying out a review of its TV channels, including Living TV, Bravo and its half share in UKTV, in a move that could trigger interest from rival companies such as BSkyB, ITV and Five owner RTL.

The cable company is believed to have appointed Goldman Sachs to examine its options. The sale could raise £800m, with other potential bidders also reported to include NBC Universal, the US broadcaster that bought Sparrowhawk last year.

It is understood Virgin has yet to decide on a sale, and could even search for acquisitions of its own.

If the company decides to sell its TV channels to concentrate on offering consumers pay-TV, broadband, telephony and mobile, the decision would mark an about-turn from its previous strategy, when it tried to buy ITV only 15 months ago.

Virgin Media's other TV channels include Sit Up, UKTV and Virgin 1, the home of the 'Terminator: The Sarah Connor Chronicles' series.

Any sale would be complicated by change-of-control rights over UKTV held by BBC Worldwide, the partner in the joint venture.

BBC Worldwide is not able to buy out Virgin because its borrowings are capped at £350m, but a change-of-control clause gives it approval over any new partner.

Virgin Media declined to comment.

Separately, Virgin Media and rival broadcaster BSkyB are said to have resumed high-level talks in an attempt to resolve their long-running dispute over carriage fees.

The dispute, which led to Sky declining to renew a deal for its channels including Sky News and Sky Sports News to be distributed on Virgin's pay-TV platform, has been ongoing since Sky acquired a 17.9% stake in ITV in 2006.

Virgin claimed Sky was overcharging its channels and was underpaying to carry Virgin's channels on its own satellite platform.

The case is scheduled to reach the High Court later this year.