Top Story


Home >> International >> Article

International: BBC invites talks to sell Worldwide

Font Size   16
International: BBC invites talks to sell Worldwide

The British broadcasting Corporation (BBC) has invited Time Warner, Bertelsmann and Walt Disney to discuss possible bids for BBC Worldwide, the corporation’s commercial sales and publishing arm.

BBC executives believe the Worldwide division, which generated free cashflow of £141 million ($250 million) in the 12 months to March 31, could be worth up to £2 billion.

Executives from the media companies are to hold talks with the BBC in the coming weeks over assets including the BBC America and BBC Prime channels, along with 26 magazine titles, merchandising operations and the broadcaster’s overseas programme sales unit.

The publicly-funded UK broadcaster is considering the move as part of an internal review, timed to coincide with a government study of the BBC’s funding and public service remit.

Insiders at Time Warner and Disney confirmed today that they had been approached, but declined to comment. Nevertheless, one executive said: “It’s a very interesting set of assets with enormous heritage and an important library of programming. Of course we will look at it.”

But Bertelsmann, the German media group which is due to release first half financial figures today, responded coolly to suggestions of a potential offer.

The corporation has asked four investment banks Rothschild, Deutsche Bank, Morgan Stanley and CIBC of Canada to examine the business, which could lead to a sales mandate.

John Smith, the BBC’s chief operating officer and finance director, yesterday met the top 100 executives of Worldwide which employs 2,200 people to discuss options.

He was told that profits could double to more than £70 million in the medium term as the business exploits growing international demand for BBC programming and merchandise.

An outright sale, however, could trigger change of control clauses at the division, which has several channel partnerships, notably its UKTV joint venture with Flextech, part of the Telewest cable group, and its factual programming tie-up with the Discovery network in the US.

Both Discovery and Telewest have been invited to discuss the future of Worldwide, whose chief executive, Rupert Gavin, is standing down this autumn.

Gavin is considering putting together a buy-out proposal, backed by potential private equity partners, to develop Worldwide as a standalone international programming sales and publishing company.

Recommendations from the commercial review, in which the BBC will also consult rival broadcasters at ITV and Channel Four and publishers such as Emap, are expected at the end of the year. The favoured proposal will be outlined in a memorandum and submitted to bidders.


Vinik Karnik, Business Head - ESP Properties, talked about what went into conceptualising the first edition of the entertainment marketing report, Showbiz

Rahul Jhamb, Brand Head, Forever 21, on how the fast fashion brand always stays on the pulse of latest marketing trends

Heavy spends on OOH and print sum up this year’s ad spends of YLG Salon

Baba Ramdev brought his sharp wits for an interview with e4m where he promised to disrupt more markets and spoke about he the way he created a brand through consistent and selfless work

Heavy spends on OOH and print sum up this year’s ad spends of YLG Salon

Thomas, Chief Marketing Officer, Diageo India, gives us a peek into the marketing strategy for McDowell’s No 1 Soda, its creation of ‘No 1 Yaari Jam,’ their own set of 4Ps and importance of content

Prior to joining Madison PR in 2012 Chaudhary was Group President Corporate Communications at Reliance Industries Limited.